Hi E_K_S,
I explain that with one man: Secretary of the Treasury Scott Bessent.
He seems to have a very good knowledge of trade flows (I think he made the status of Billionaire making big currency bets. His initial work with Soros taught him a lot.
Bessent wants the 10 year to decline and so far, it is working.
Normally the Dollar should rise with all of the new found tariff funds. As Secretary of the Treasury he has sold a lot of 2-3 years notes, NOT sending that debt out to the 10 year has not put supply pressure on the r10 year rate.
Yet amongst the dropping of rates, the Money supply has grown quite a lot.
Monetizing the debt is inflationary, which should decline the Dollar.
Ther are two opposing influences on the Dollar, Tariffs supporting it up,and Monetizing (printing money) impacting the Dollar downward.
Bessent can walk and chew gum at the same time.
I think his education at Yale business school paid off for him quite nicely. He told Congress as they questioned him, that he worked three jobs to pay for his education and that he earned his own money by himself. I like that, he is market saavy.
Something so few in Congress and those who work in higher education colleges possess.
The first desire of Trump's tariff was the dropping of all tariffs. Those who have abused trade with the US howled the most (Europe & Canada).
If the tariff money can go to reducing the percent of our government's share of the GDP, our debt will no longer be considered unsustainable. If tariffs stay high and last for 10 years our debt may just be declining.
If those who want war, they need to understand we have the weapons to win, but they can no longer be free. If you want to save your sovereignty, you can, but you must buy them to save your country.
NO MORE MR NICE COUNTRY! Buck up or lose your land.
I wonder how much of our 36 trillion was spent on saving other countries from invading communists or dictators?
No one paid for much of it, let alone say "Thank You".
We're going in the right direction, and we still have a huge spending problem.
We'll hear the howling next week as we shut down the country's government including stopping the Obamacare freebee and giving illegal immigrants health care for free.
There should be no FREE health care. That is why so many will still work - it is a benefit of being employed and with that should come 250 to 500 dollar deductibles. Those who don't work got it for free and those who worked got 2,000 to 5,000 deductible's. Outrageous wealth redistribution at its worst.
It is more than high time to downsize our government.
Stop the big unions :Teachers and HHS dept.
America at its best is a working competitive environment where government leaves business alone.
The Dems have been buying votes with all of our money for decades.
Let's buy votes with work and prosperity for all Americans.
In short: GET A JOB and INVEST!
Bob |
