Nobel economist says Trump and his favorite industry are 'collapsing on multiple fronts'

Nobel economist Paul Krugman says U.S. markets are inextricably tied to politics, but Trump’s politics are pulling his market to pieces.

“Trump seems to be collapsing on multiple fronts, with the collapse on each front reinforcing the collapse on others,” said Krugman. “The Epstein affair is coming to a head even as the public loses all faith in his economic policy, and the whole structure of fear on which his regime rests appears to be evaporating.”

“He also seems to be unraveling personally,” Krugman said, referencing recent demented explosions at national news media. “We always knew that President ‘Piggy’ despised women and admired tyrants, seeing nothing wrong with hacking up your critics with a bone saw. But even a few months ago I think he would have been self-controlled enough to be less obvious about it. No, I don’t know what that looks like. But the U.S. political universe looks very different than it did a few weeks ago.”

Krugman said “a rapid implosion looks possible” in terms of both the White House and one aspect of the market.

“Stuff is happening in the markets. Most dramatically, crypto is crashing,” said Krugman, citing information showing Bitcoin dropping 42 points early Wednesday morning. Bitcoin was arguably one of the more stable crypto variants haunting the market.

“Crypto and the political crisis aren’t independent,” said Krugman, and he suggested Trump has tied himself to the nascent industry, making both the industry and Trump look like they are riding the same fading fumes.

“Crypto has become a Trump trade. An industry that’s still having very little success in finding legal use cases for its products basically bought itself a president,” Krugman said. “For a while that looked like a great investment. But with Trump’s power evaporating, it’s starting to look like money down the drain. And I believe that the crypto crash in part reflects a realization that the political patronage the industry was relying on may not continue.”

Read Krugman’s report at this substack link.