Mukunda: CEOs staying silent is no longer an option

"This week the Trump administration threatened a two-front war, with one against America's allies and another against its own central bank. The White House's threats to use force to seize Greenland from Denmark and the launch of a Justice Department criminal investigation into Federal Reserve Chair Jerome Powell are profound and needless assaults on two of the most important pillars of American power and prosperity NATO and central bank independence."

"The response from corporate America? Deafening silence. The stakes are almost impossible to overstate. For starters, using force against the territory of a NATO ally would likely make massive economic retaliation by the rest of the alliance against the U.S. inevitable. That could range from expelling American military forces from Europe to dumping European holdings of U.S. Treasuries to barring American companies particularly those seen as close to the administration from European markets."

"Meanwhile, turning the Fed into a tool of presidential politics would expose the U.S. economy to the kind of inflationary pressures that have crippled countries such as Turkey and Venezuela. These moves are not, like tariffs, the massive cuts to scientific research, or the daily turmoil surrounding the White House, something that can simply be absorbed as a cost of doing business and offset against tax cuts. The chaos is no longer just hanging over the system; it's coming for the system."

"Silence is irrational' Business leaders could look at tariffs or funding cuts to science and technology and conclude that, while harmful, they mattered only at the margins or were temporary until a new administration comes to power and reverses course. For the next few years, the U.S. still would remain the best place to invest. And if necessary, offering tribute as a way to curry favor with the Oval Office and fix the problem would be a viable option, as Apple and Rolex demonstrated."

The administration made aggressive moves against a NATO ally and the Federal Reserve, threatening geopolitical stability and institutional independence. Using force against an ally could trigger widespread economic retaliation, including military expulsions, selling U.S. Treasuries, and market restrictions on American firms. Politicizing the Fed would raise inflationary risks similar to those experienced by Turkey and Venezuela. These threats differ from tariffs or budget cuts because they imperil foundational systems rather than imposing manageable costs. The unfolding chaos presents systemic risks to investment, markets, and national economic stability amid muted corporate pushback.

Read at www.mercurynews.com