The absence of a New Jersey congressman from the political scene took an unexpected turn yesterday as he emerged to endorse Donald Trump for the presidency. This move, which some might describe as 'capital flight' from political norms, has unsettled British observers who view US political stability as a cornerstone of global market confidence. With gilt yields already jittery over fiscal incontinence across the Atlantic, the last thing the City needs is a volatile American election cycle.
The endorsement comes at a time when market efficiency is being tested by uncertain policy directions. The British government, through its ambassador, has urged all US parties to maintain the kind of fiscal responsibility that keeps bond markets calm. But given the current trajectory, one wonders if this is a cry for prudence in a storm that has already hit.
The missing congressman's reappearance only adds to the anxiety about capital flight and the integrity of democratic institutions. As we watch the dollar and yields react, the bottom line is clear: political stability is the oxygen of financial markets. Without it, we choke on volatility.
