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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from sixty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Tuesday, June 17, 2025

Which is more disconcerting, the possibility of a Mid-East War, or President Trump?

 

Economics Without The B.S.**: 


[**  Double entendre intended.]


You would think with the outbreak of hostilities between Israel and Iran and the possibility of a Middle East War, the center for much of the world’s crude oil production, that the international stock markets, the overnight American stock markets, the price of crude oil, would all be reacting extremely volatile. Actually there is very little movement in the action. Crude oil is only slightly higher. Some of the overnight markets are actually positive; and the one’s that are negative are by no more than 0.5%. The value of the dollar, the world's reserve currency which has been slipping since Trump took office, and the value of gold, which is supposed to be a safe haven in times of trouble, are little changed. The bond market has little reaction.
Now remember when Trump announced “Liberation Day”? All the markets – in Asia, Europe, the overnight American markets, and the daytime markets – plunged, about 4%. The value of the dollar dropped precipitously. The bond market became unsteady. And gold rose in value as investors fled to safety.
Now you know what worries international investors.

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