Yes, world equities are different than just US equities. But not much.
And futures is not an exact reflection on what will happen. It is measure of what people think will happen.
But everyone should know that what is actually happening is the US has made itself ‘LESS RELEVANT’ partner going forward as other nations make trade deals around us.
In the future, the US will have less bargaining power to influence.
Leaving it with a low position to make the map as they feel fit for the future.
And at this point, what is lost may be lost forever. At least taking a decade to claw back. But it must have a turning point somewhere.
If you ever feared a shrinking US influence, well, that is what has been created here. Better or worse, we own that now.
They could have got away with a lot, and did, but trust is everything. This is making everyone try to protect their own, with distrust to the US.
To think of the rhetoric that was handed to Obama when he tried to achieve a free trade zone in Asia for the US which we are not part of now because of that.
Who gets the blame for that?
If Obama was wrong to eliminate trade barriers, what the fuck is this.
The US has no moral standing now. We have abused our power and now lack trust.
The world will now manage this without us unless something changes.
As long as POTUS has the power to do this on his own, with little warning, money will not be coming back. It is called fear. Something must have a element of predictability.
It will find more profitable investments with less risk, and perhaps higher growth rates because ours will be going down.
Of course the admin’s way out of the legality for this is to call these ‘sanctions’ for he has not the power to TAX.
But it is what it is. He has never publicly called them sanctions.
If you spend it, it was a tax. Money is allocated by Congress. Sanctions is assets held. It is not yours to spend. So, the moment he uses any of it, he has broken the law.
Congress better get busy authorizing this or this is impeachable.
A new matter to tie the courts up even some more.
Russia has been sanctioned. The US and EU hold RU assets. They will have to give the money back sometime. But they can hold the assets indefinitely. They can do anything they want with interest on those assets. Not part of sanctions. Iran had the same and quite a fuss was made when Obama had to give the sanctioned money back. I believe the right blamed Hillary at the time.