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Federal spending is up. So there is a pretty big focus on generating new revenue to pay for it.

Most analysis so far shows that tariffs are being paid primarily by U.S. consumers and U.S. businesses. The foreign share (in the form of price cuts) is pretty low.

One of the impressive things about Trump is that he managed to convince a nontrivial percentage of conservatives to cheer for higher spending and new taxes to pay for it.

Noisy signal 5mo ago

I could be on the wrong track here -

but the role of stable coins might impact on keeping the value of the USD artificially high and its a way for Federal Reserve Bank to print and sell more debt.

Bassent focuses on selling the short term bonds, that attracts the low interest rate, just biding his time until Powell drops the interest rate.

Then he can focus on selling the long term bonds, locking in the lower interest rate.

As for the tariffs - I'm starting to think Trump deliberately played this to re-negotiate the debt owed by USA to all the countries caught holding the bond/treasury bags due for payment.

I might be using the wrong dots, because there are way more variables I still haven't connected.

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