#CPI数据来袭 Trump is really desperate this time!
The United States owes $34 trillion in foreign debt, and the interest alone needs to be paid back $1 trillion each year, equivalent to throwing away the money for 3 aircraft carriers every day. Seeing that the Federal Reserve refuses to lower 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 simply playing with fire! On the surface, it seems tough on the outside, but in reality, it is self-harm. Once the news broke, the United States was the first to suffer: the stock market plummeted, companies laid off workers, and the unemployment rate soared, with an economic crisis looming. What is Trump trying to accomplish? He wants to force the Federal Reserve to lower interest rates, saving $200 billion in interest money, while also boosting housing prices and stock prices to please his financial backers.
But anyone with clear eyes can see that this move has too many flaws! 70% of the U.S. stock market is made up of domestic investors; crashing the market is equivalent to cutting off their own financial lifeline. Even more frightening is that if China and Japan stop buying U.S. debt, the U.S. government will immediately run out of funds. How could Powell, a seasoned finance veteran, be scared by such threats? Monetary policy is not child's play.
In the end, Trump is just bluffing. With the 2024 election approaching, does he really dare to collapse the economy? This gamble is, in every way, a sure loss!