The Trump 'Sell America' Trade

Our economy is wandering like a wounded animal in search of help

This Substack was one of the first to report that it was the loss of U.S. exceptionalism that was the deciding factor in Trump granting a 90 day pause of some of his retaliatory tariffs. To recap, at that time, the price of U.S. treasuries was inexplicably falling. In a normal environment, when the stock market plummets, as it had in the aftermath of Trump’s so-called Liberation Day, there would be a flight to safety, and therefore the price of U.S. treasuries would rise as investors crowd in to what had been the safety of being back by the U.S. government. Instead, the opposite happened.

Since then, things have only gotten worse.

The U.S. dollar, another investment that has traditionally been seen as a safe harbor, has also cratered, falling to its lowest level in three years. I dubbed it the “Triple Threat” of the stock market, the price of U.S. government debt, and the U.S. dollar all falling at the same time, which is highly, highly unusual. I explain it in this YouTube video about the Triple Threat.

Now, Wall Street has new name for what Trump has done to our economy with his trade war. They have dubbed it the Trump ‘Sell America’ trade. What does that mean?

The Sell America Trade: