Some fund managers concerned ‘that the White House is not acting rationally, but rather on ideology. And some even fear that this may not even be ideology’
As Donald Trump’s back-and-forth on trade policies creates chaos in the financial markets, some fund managers are questioning the rationality of his decisions.
“In the last few days, we have had many conversations with macro fund managers,” Tom Lee, the head of research at the financial analysis firm FSInsights, wrote on Wednesday morning, before Trump backed down from most of his tariffs on U.S. trading partners.
“And their concern is that the White House is not acting rationally, but rather on ideology. And some even fear that this may not even be ideology,” he added. “A few have quietly wondered if the President might be insane.”
It’s more that the plan was based on overconfidence in US exceptionalism and power, and gross misunderstanding of Navarro’s stupidity. Like propaganda that west is stronger than Russia militarily, and sanctions would cause Russians to be as stupid as the west’s gullible population, instead of extremely determined to defend themselves. Tarrifs on the world combined with military threats to allies creates the same determination against US, and the illusion that the US is more powerful than China is something that disappears when reality is tested. The illusion that the US has any economic sustainability or strength at all, gets tested.
It’s all about plans that are based on lies, and the propagandized belief of those lies, must adjust to reality.