Trump is really panicking this time!
The U.S. has a foreign debt of 34 trillion dollars, and just the interest alone amounts to 1 trillion each year, which is equivalent to throwing away the money for three aircraft carriers every day. With the Federal Reserve refusing to cut interest rates, Trump has flipped the table—threatening to impose a 60% tariff on Chinese goods and even threatening to withdraw from the WTO and sanction European car manufacturers!
This move is playing with fire! On the surface, it seems tough on the outside, but in reality, it's self-harm. As soon as the news broke, the U.S. faced the consequences: the stock market plummeted, companies laid off workers, and the unemployment rate soared, with an economic crisis imminent. What is Trump calculating? He wants to force the Federal Reserve to lower interest rates, save 200 billion in interest payments, and conveniently boost housing and stock prices to please his backers.
But anyone with clear eyes can see that this move is full of holes! 70% of the U.S. stock market is made up of domestic investors, and crashing the market is equivalent to cutting off their own financial lifeline. Even scarier is that if China and Japan stop buying U.S. bonds, the U.S. government will immediately run out of money. Someone like Powell, a veteran in finance, how could he be intimidated by such threats? Monetary policy is no child's play.
Ultimately, Trump is just bluffing. With the 2024 election approaching, does he really dare to collapse the economy? This gamble is clearly a losing game!
Are you stuck? When will you buy the dip? Still, the same words, feeling lost and helpless not knowing what to do, just tap the profile picture to comment. I need fans, and you need references.
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