There’s an old adage that whomever enjoys either sausages or laws should never watch how they are made. Nowadays that runs increasingly true for the simple day-to-day politics of governance. I don’t think any of us are under the illusion that politics is a nice polite “After you, Sir.” “No, I insist, after you!” affair. Instead it’s almost always a sharp-elbowed, devil-take-the-hindmost process.
However, what we are seeing at the moment in the US is showing a wild ‘sausage party’ being played out in the public eye – and it is hardly an edifying spectacle as far as markets are concerned. Indeed, amidst a surge in “Trump impeachment” (or “Trexit”) cries from the same sources who didn’t see him winning in November — and a spike in the odds of that happening — equity markets tumbled, the S&P -1.9%, for example, the Dollar index dumped (from 98.0 to 97.4), and US Treasury yields slumped from 2.30% to 2.22%.