"To the public it will look as if nothing has changed. But behind the scenes the EU and the UK could close the joint bank account and cut up the credit cards, or at least set in motion a form of financial separation that limits the power of a controlling former partner. It won't be easy to walk away and it won't be quick. But a degree of separation is necessary and, crucially, achievable."
"The S&P 500 might say the opposite, sucking in, as it does, so much international money that its rise seems unstoppable. In other financial markets, the reverse is true. For instance, China has spent the past year reducing its US government bond holdings. In other words, it has cut the amount it lends to the US government via the bond markets. Japanese pension funds have done the same."
Europe can pursue a form of financial divorce from Donald Trump by closing joint accounts and cutting credit lines, initiating a limited separation to reduce US leverage. Political theater such as Davos distractions and midterm-election hopes may not restrain a belligerent US incumbent. The post-1945 international order has been eroding since 2008, prompting reconsideration of ties. Global finance shows early signs of decoupling: China and Japanese funds have reduced US government bond holdings. The S&P 500 continues to attract capital, but lenders fear overvaluations and potential crashes, prompting greater caution among creditors.
Read at www.theguardian.com
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