Amid the tumult, other markets considered alternative safe havens to the United States have gained. Yields on German government bonds, which serve as the benchmark for the eurozone, fell on Wednesday, indicating strong demand. Gold prices rose, too.

“The global safe-haven status is in question,” said Priya Misra, a portfolio manager at J.P. Morgan Asset Management. “Disorderly moves have happened this week because there is no safe place to hide.”

“Optically, in some countries now you don’t want to show an overweight position, or maybe even an equal-weight position, in the U.S.,” said Peter Tchir, head of macro strategy at Academy Securities, an investment firm.

In a social media post on Wednesday, the former U.S. Treasury secretary Lawrence H. Summers said the broader sell-off suggested a “generalized aversion to US assets in global financial markets” and warned about the possibility of a “serious financial crisis wholly induced by U.S. government tariff policy.”

“We are being treated by global financial markets like a problematic emerging market,” he wrote.

“If they can do these extreme restrictions on trade, even with the closest allies, can they do restrictions on capital flows as well?” Mr. Nordvig asked. “Nobody knows. There is no limit here.”

Paper money eventually returns to its intrinsic value —- zero.” Voltaire (1694-1778)

Now that China has played the game mostly by the rules set by the USA, and won, Trump abruptly sets out to smash the rules USA put in place and reset the global trade rules to suit USA. This is not free trade or good faith bargaining- this is a fucking bully sore loser throwing a tantrum.

• The 'free market' school: government intervention is bad, every action has an opposite reaction, and there is no 'cheap and easy' 'trick' to prosperity. Productivity, technology, and the increase in wages is almost always tied to better goods and services. Either you offer the 'best good' (or service) for the 'lowest price'... or you get left behind this is the eventual outcome of almost any market given enough time.
• The Trump/Tariff school: government intervention is good. There is a 'free lunch' through currency manipulation, government deals, and coercive bargains... and "manufacturing" IE getting other countries to "buy your goods" no matter what is the end goal. Subsidize the "working class" and promise them jobs & security... because their support at the end of the day and their goods and manufacturing should be the # 1 priority of government. Their support is everything.

A User’s Guide to Restructuring the Global Trading System (AKA Mar a Lago Accords)

particularly in economies looking to bypass the dollar and reduce exposure to U.S.-led financial systems.