If Donald Trump wants to take credit for something he actually did to the economy, now would be the time.
Earlier this week, Trump threatened war against North Korea, resulting in a war of words with Kim Jong-Un and escalated threats that culminated in a Friday morning tweet from Trump.
Military solutions are now fully in place,locked and loaded,should North Korea act unwisely. Hopefully Kim Jong Un will find another path!
— Donald J. Trump (@realDonaldTrump) August 11, 2017
The rhetorical march towards what could end up being a real nuclear war wrecked havoc on global markets, including Wall Street, as stocks plunged. In all, the economic loss added up to $1 trillion, the effects of which will likely hit households in America and around the world hard.
According to the St. Louis Post-Dispatch,
With the tense mood pushing European shares down for a third day and Wall Street set to fall again, global stocks were on course for their worst week since Donald Trump won November’s U.S. presidential election.
“We do just not know what happens next with the North Korea situation,” said BNY Mellon FX strategist Neil Mellor.
“For quite some time the market hasn’t really reacted to things on the Korean Peninsula because we know from the past it is largely North Korean saber-rattling, and it may yet be. But with the rhetoric having gone to a different level, the market just can’t afford to take that risk.”
Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions over North Korea have proved the trigger.
Indeed, Asia Pacific shares just suffered their biggest one-day loss since December. South Korea’s KOSPI dropped by nearly a full two percent.
In addition, “Australian shares were down 1.3 percent, set for a weekly loss of 0.6 percent and Chinese and Hong Kong bluechips lost 1.6 percent and 1.9 percent respectively.”
“What has changed this time is that the scary threats and war of words between the U.S. and North Korea have intensified to the point that markets can’t ignore it,” said Shane Oliver, head of investment strategy at AMP Capital in Sydney, reports the Post-Dispatch.
The Dow Jones has also been falling since Tuesday, the same day Trump threatened North Korea with “fire and fury.” As of Friday, the Dow has shed 300 points.
Trump often brags about the stock market even though the record growth began under President Obama. Donald Trump has not enacted a single economic policy since taking office. The stock market had continued setting records thanks to President Obama’s handling of the economy and steady leadership. Trump was merely taking credit for Obama’s achievement.
But now the stock market is falling in America and around the world because of Trump’s war rhetoric, which means this trillion dollar loss is all his fault. There is no blaming President Obama for this economic slide. Trump owns this. And more rhetoric or an attack on North Korea will just make things worse.
Featured image via Alex Wong/Getty Images