Stage 2 of American Divergence and the Risk of Global Stagflation 

Blain’s Morning Porridge, March 30th, 2026 – Stage 2 of American Divergence and the Risk of Global Stagflation “Events dear boy, events…” The global economy is inevitably slowing from the deepening Hormuz oil shock. The Americans intend to press on despite the rising costs. While the global economy burns, President Trump is mulling multiple plans to achieve his version of victory. The rest of the World is waking to the reality this war is damaging their economic interests, and wondering how to mitigate the effects. Another interesting week’s play in prospect for the global financial markets…. What will happen next? Who knows….  The financial markets are never simple. You can’t simply define them in terms of the sentiment differential between optimists and the pessimists, or how deep or shallow real events will go. There are consequences and effects which make markets and consequences kind of multi-dimensional! Hah…  that’s far too sci-fi for a Monday Morning, but I’m sure you get the drift.However, there is now a new reality emerging.It’s political realisation – call it Stage 2 of the Trump effect. Stage 1 was the realisation Trump holds the rest of the World in Contempt. Stage 2 is actively countering him.Around the globe, Nations are now experiencing the negative consequences of Trump’s mis-adventurism on their economic interests. While Trump continues to hurl insults at nations that won’t support his war, there is a growing realisation its America’s actions that have triggered global slowdown and likely stagflation.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!