Grade A manipulation going on here. Reducing interest rates would reduce the supply of real loanable funds (outside of the Fed itself's supply). By leveraging Trump's populist status and the normie intuition that low interest rates simply means less they have to pay for loans, the current administration is continuing the subtle push toward dismantling the banking cartel's power. Who stands to benefit and what they will use their increase in power for, I'm not sure of the full scope. I just know it's a big power move disguised as a genuine concern about interest rates.
Discussion
Hahaha. Yeah, no. Trump and Bessent fear a horrific depression harming their tax revenue and adding more debt than planned and getting blamed.
They need rates down now to buy trillion in new debt. Nothing subtle about it.
Trump is a fiat maxi dunce who doesn't see beyond 2 weeks.
He lives by his real estate, stock, and financial assets. He doesn't want the banks dismantled in any way.
Yes I know. I suspect he is being used by the faction I'm talking about.
He canāt get the tariffs to work if the rates are too high.
Is that true? I'm still learning about global monetary matters. My understanding was that the demand for government debt instruments is waning, and that this is made even more problematic by tariffs because it discourages intercontinental cooperation in the global reserve currency, which is part of what drives demand for dollars and dollar denominated debt in the first place. Tariffs plus low interest rates would be a double whammy, and might accelerate adoption of alternatives like bitcoin and gold and bitcoin-backed debt, which have been perceived as a threat by the Davos community, but might be leveraged in a perverse move by especially intelligent and more nimble statist corporate privilege seekers like Palantir and crypto VC bros.
The CIA is one of the few government entities that acts fast and effectively (often at great expense of other people's lives and freedoms)
No one really knows what happens. Iām probably talking out of my ass and dead wrong. š Americans arenāt spending due to high rates and cost of goods. Lower rates encourage spending. If people arenāt buying then thereās less shipping. Countries donāt need to comply with tariffs if thereās less incentive to do business with them. Devaluing the dollar would work to Trumpās benefit because it would make the debt easier to pay off. But thatās a really big mountain to climb and as Lyn says, ānothing stops this trainā. Bitcoin already won, itās just a matter of time before people accept it.
Good points.
