After a week of global turmoil and talk, nothing was solved

Subscribe to enjoy similar stories. In the year commemorating the 250th anniversary of the signing of the Declaration of Independence, it is supremely ironic that 2026 could also mark a similar declaration by America’s historically staunchest allies. “We are in the midst of a rupture, not a transition," Mark Carney, Canada’s prime minister, starkly told the World Economic Forum in Davos, Switzerland, this past week.

That was from an international rules-based order, under “American hegemony," which he said “helped provide public goods, open sea lanes, a stable financial system, collective security, and support for frameworks for resolving disputes." This apparent rupture was highlighted by President Donald Trump’s threat to take over Greenland, which roiled financial markets at the beginning of the week. That was backed by his initial non-denial that the U.S. would consider the use of military force to take over the Arctic island and the imposition of additional tariffs on goods from European countries opposing the move.

Then, in what has become a familiar performance, the president pivoted on Wednesday away from his initial extreme positions to emerge with an agreement. After eschewing force, he announced he reached “the framework of a future deal" over Greenland and rescinded the tariffs due, which had been scheduled to hit on Feb. 1.

Global stocks staged a relief rally, recouping most of their earlier losses, just as they have after previous episodes. Notably, last April’s “Liberation Day" swoon became a marvelous entry point for a subsequent stunning run of over 40% from the lows of the S&P 500 index to its recent record just short of the 7000 mark. While risk markets’ muscle memory is strong, nothing was solved by