Medievalism is bad for the economy
Trump sincerely believes that America’s success depends on its ability to threaten and use force against others. This view is evident in every attempt to bully other nations with tariffs, military interventions, and draconian policies that rely on emergency powers rather than Americanism and the rule of law. He needs emergency powers to govern, because the American system was devised precisely to prevent people like him in charge. The emergency powers allow him to operate above the constitutional principles established in 1776.
Trump acts in this manner because he holds an anti‑intellectual and anti‑ideological vision for the United States. He does not believe what the founders believed: that well‑being and prosperity arise from human intellect and the freedom to exercise it. Trump embraces a medieval view: “The world belongs to the strong. The strong command; the weak obey.” That is why he craves for control and power, while having nothing but contempt to free trade and the free movement of people. Thats why he cannot care less to the system of checks and balances devised by the founders.
The medieval view leads one to resent foreigners, as Trump does. It leads one to oppose free trade, as Trump does. It leads one to believe that for America to win, others must lose. It makes America appear to be what it was never conceived to be: a Banana Republic.
He gained power by convincing a large portion of the population that vulgarity, threats, and conquest are the path to strength and a good life. He became president by persuading many Americans that American exceptionalism comes from military might, and heritage. He reinforced this medieval notion. In doing so, Trump pushed America further away from Americanism.
But reality keeps proving the opposite. The medieval mindset is bad. As he bullies and threatens, U.S. Treasury bonds lose value with every reckless move. He then walks back his actions because reality is sends him clear a message: “continue this path and economic consequences will be dire”. His authoritarian impulses make markets turn ugly—and fast. These seem to be the only signals he respects. He retreats at every market meltdown caused by his own foolishness. People have even created a name for his behavior: “TACO”.
His latest move was over Greenland. He used all sorts of threats to pressure American allies into yielding to his desire to incorporate Greenland into the United States to expand its territory—a move every medievalist loves. Europe responds back promising more trade restrictions.
The markets quickly sent a message by selling U.S. bonds. He is now timidly walking back saying that military action is discarded. The bleeding stops, until the next self-inflicted crisis.
So, the more medieval Trump becomes, the more the markets punish American economy.
The truth is that America is powerful not because of its military, but because of what its military protects: freedom. It creates political conditions that attract talent from around the world to create, innovate, prosper, and trade freely. It creates growing amounts of wealth, and well being, and exports it for the rest of the world, while getting cheap credit in return to do more.
This is the view held by those who believe that intellect matters—that ideas matter. Whenever this view is challenged, the markets respond by selling U.S. bonds and buying gold.