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Notes -
I believe the technical term is 'negative-feedback loop'.
The term "negative feedback loop" is a technical term for this but a non-specific one. Other related terms are "non-credible threat", "equilibrium selection", and "brinksmanship". I like the term "one of those cursed anti-inductive things", though, because
Here's how I'm modeling the situation:
As far as I can tell, this situation leads to the cycle
I don't have the math chops to figure out what actually happens in this model as market participants get better at predicting Trump's behavior though. My suspicion is "25% chance the disaster actually happens each time we go through the cycle".
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