Trade War Is Definitely Shaving Off Some Global Growth: GSAM's Wilson

The transcript discusses the weaponization of the economy in foreign policy, focusing on the rhetoric and its impact on the treasury market. It highlights the escalation of trade tensions, particularly between the US, China, and Mexico, and the resulting market reactions. The discussion covers the potential global economic impact, including a decrease in global GDP and market cap. It also analyzes treasury yields and economic indicators, considering factors like the labor market and inflation, and their implications for potential Fed actions.

What is one of the main reasons for the increased rhetoric in U.S. foreign policy under President Trump?

• To reduce treasury yields

• To gain political support within the U.S.

• To increase global GDP

• To strengthen ties with China

How has the trade tension affected global market capitalization recently?

• It has increased by $4 trillion

• It has remained stable

• It has decreased by $4 trillion

• It has no impact

What is a potential consequence of the ongoing trade tensions on global GDP?

• No change in global GDP

• A decrease in global GDP by 2-3 tenths

• An increase in global GDP by 2-3 tenths

• An increase in global GDP by 3%

What might cause treasury yields to drop to 2%?

• A rise in global GDP

• A significant slowdown in the labor market

• An increase in inflation

• A strong labor market

What does the bond market inversion typically indicate?

• An increase in global GDP

• A slowing world economy with no inflationary pressures

• A stable economic environment

• A period of high inflation