The article's central argument is that the recent decline in global markets is partly due to growing concerns among investors about Donald Trump's mental fitness. It posits that Trump's erratic behavior and inconsistent policy decisions, stemming from possible cognitive decline, have eroded investor confidence.
The author challenges the conventional explanation that the market downturn solely stems from Trump's tariff policies, arguing that even if his policies reflected strong convictions, the lack of a coherent plan makes it hard for investors to trust the stability of the market. The decline in US government bonds and the dollar value further supports this claim, indicating a broader loss of confidence in the US economy.
The article highlights Trump's unpredictable behavior, citing instances like his threats to fire Federal Reserve Chairman Jerome Powell and the inconsistent nature of his trade negotiations. It stresses that this unpredictability and a lack of clear policy direction are contributing factors to market instability.
The article cites several sources, including news agencies like AP and the Wall Street Journal, and financial commentators like Charles Gasparino, to support its claims. It mentions reports that Japanese negotiators found it difficult to reach trade deals with the White House due to the constantly shifting demands from the US side.
Ultimately, the article concludes that the market's reaction is not merely a response to specific policies, but a reflection of a deeper concern about the state of the American government under Trump, characterized by instability and lack of predictability.