Eswar Prasad

Because China right now, the second largest economy in the world, is requiring demand from the rest of the world to pull its economy along.

Last year, China recorded a $1.2 trillion trade surplus.

So China's economy now has become reliant on other countries for its own growth.

So I think Mark Carney's speech actually pointed out two very important things.

Number one,

The rest of the world, other than the U.S.

and China, has to settle in for a period where instability is the norm.

And second, the rest of the world has to do whatever it can to circle the wagons because it now faces these two very unsavory alternatives.

The U.S., which is no longer seen as a trustworthy or reliable ally, and China, which wants to bring countries into its embrace but has its own problems and is not well-trusted.

How would you respond to that?

So the U.S.

economy, Scott, is remarkable.

You know, the economists think that uncertainty, volatility of policies should hold back growth, especially because that affects investment.

But the US has accomplished one thing that no other major advanced or emerging market economy has done in the post-COVID period, which is generate tremendous productivity growth.

And when you have very good productivity growth, that makes a lot of things square up.

That means that you can have decent growth.

decent employment growth, although that seems to be slowing down a bit right now.

You can keep inflation somewhat restrained, even at a time when from Washington there are no clear signals about policy.

Tariffs are potentially adding pressure on businesses, adding to costs and so on.

So that fundamental dynamism of the U.S.