BUSINESS REFLECTION: Loaded For Bear: Equity markets have not priced in Trump’s next coup attempt
Election theft is par for the course in many failed states and democracies, from Russia to Zimbabwe. But this is not just any run-of-the-mill banana republic: this is the world’s largest economy, and political turmoil there will shake markets around the world.
Global equity markets have soared this year, with major US indices hitting record highs. However, traders and investors are overlooking a looming threat to the stability of the world's largest economy: President Trump's attempts to overthrow the upcoming midterm elections. Trump's actions suggest he will not accept a result that reflects the polling data, which indicates a likely Democratic majority in the House of Representatives, with the Senate also in play.
Trump's anti-democratic behavior has included pushing for voter suppression tactics, like gerrymandering in Texas and opposing mail-in voting. He has also filed lawsuits in multiple states to gain access to voter data, potentially aiming to overturn election results he dislikes. Moreover, the Department of Justice has been actively involved in these efforts, signaling a DOJ stacked with election deniers and influenced by Trump's falsehoods about election fraud.
Recently, the DOJ even attempted to block Alaska's election results in a Senate race, potentially setting a precedent for subverting election outcomes. Trump has also floated the idea of invoking the Insurrection Act to deploy military force against domestic unrest, further demonstrating his disregard for democratic norms.
The fallout from these actions could have severe consequences for global markets, as political instability in the US could trigger widespread unrest and uncertainty. The stock market's recent performance, driven largely by hype around artificial intelligence, may prove vulnerable to this political turmoil. As the world watches, it is clear that the fate of US democracy hangs in the balance, and markets must brace for potential turbulence if Trump's coup attempt succeeds.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
