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Strategies & Market Trends : The Art of Investing
PICK 61.95+1.0%Jan 29 4:00 PM EST

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To: Sun Tzu who wrote (10752)1/21/2026 10:12:43 AM
From: Kirk ©  Read Replies (1) of 10768
 
Isn't that what Trump wants, lower interest rates which means higher prices for US Treasuries?
You'd think that if they are so desirable, then the US could raise the price of its treasuries and solve its deficit problems.
People loan money at a rate they feel will give them a positive return after inflation. If they can't find that, then they look for places that will at least give them their money back.

Inflation makes loans less valuable based on their duration.

Japan and I believe Germany used to get paid to store money for their lenders, ie negative interest rates. Then in Germany they built a lot of windmills and saw their electricity get too expensive to manufacture goods (autos) at a profit and so the interest rates on their bonds went up. (grossly over simplified in honor of the guy on TV in Davos.)

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