@qhange.bsky.social
I have been thinking about the TACO vicious circle and, IMO, the most efficient way for the EU, UK, Canada and other concerned countries to prevent the potentially disastrous self-escalatory and self-radicalising progression contained therein would be to pre-emptively escalate...
The TACO cycle:
Markets want to price in TACO. But TACO only works if Trump sees stocks tank.
So we get a loop: Trump does things → nothing happens (markets already priced in TACO) → that emboldens him to do more → until markets start to think he might not TACO → stocks fall → TACO is restored.
Markets want to price in TACO. But TACO only works if Trump sees stocks tank.
So we get a loop: Trump does things → nothing happens (markets already priced in TACO) → that emboldens him to do more → until markets start to think he might not TACO → stocks fall → TACO is restored.
January 21, 2026 at 9:33 PM
I have been thinking about the TACO vicious circle and, IMO, the most efficient way for the EU, UK, Canada and other concerned countries to prevent the potentially disastrous self-escalatory and self-radicalising progression contained therein would be to pre-emptively escalate...