The World Still Loves the American Economy

“The World Economy Is Becoming Wary of the U.S.,” the New York Times announced this week.

The subhead pins the blame directly on President Trump: “America’s position of global economic stability is starting to look shakier as the Trump administration piles on debt and doubles down on sanctions.”

“Global investors are balking at U.S. bonds. Talk of the dollar’s dwindling power is getting louder. Foreign governments are hauling their gold out of American vaults,” the Times trumpets.

This sounds ominous until you examine what the money is actually doing. Much of the supposed flight from America turns out to involve buying other American assets, adjusting to American trade policy, or acknowledging that no other country offers a credible replacement for the dollar.