The Great US Debt Renewal Drama Begins: Who Will Blink First, Trump or Powell?

The global financial market is in turmoil, with gold, oil, US stocks, and the Nikkei all feeling the impact, and the core focus is on the renewal game of America's massive debt! The main players in this contest are the US government and the Federal Reserve, or rather, Trump and Powell. They are driving the massive vehicle of the United States, with the pedal to the metal, racing towards the cliff, betting on who will hit the brakes first!

The focus of the game: When the huge US debt is about to expire, will it be renewed at high interest rates, or will it slip through at low interest rates?

In the past, low interest rates allowed the US government to borrow without pressure. Now, renewal costs have skyrocketed, and Trump and Powell are engaged in fierce confrontation.

If Trump backs down and renews the debt at high interest rates, the US government will bear a heavy burden, with its financial lifeline tightly gripped by the Federal Reserve, becoming a mere “worker.”

If Powell compromises, the Federal Reserve may be forced to respond by cutting interest rates, allowing the US to renew its debt at a lower cost, with financiers making concessions and politicians regaining the initiative.

This game is not just a battle of economic policy; it is a life-and-death struggle for control of America between financial elites and political forces!

Why is the market fluctuating so violently?

The ups and downs of global asset prices are all tied to this! Trump is pushing for increased tariffs, raising inflation pressures; the Federal Reserve is staunchly maintaining high interest rates, causing corporate financing costs to soar, choking the economic lifeblood. The US economy is gradually sliding into a quagmire of both inflation and stagflation, and it may even trigger a large-scale recession.

The best strategy for the University of Tokyo: watch and wait for the opponents to fight among themselves!

If the US government and the Federal Reserve continue to be deadlocked, with tariffs constantly rising and interest rates not easing, the US economy will be torn apart. Government policies will ignite inflation, and the Federal Reserve's high interest rates will crush businesses, plunging the market into chaos. The recent rebound in Nasdaq? Just an illusion before the storm! The real downturn is likely still ahead—because neither Trump nor Powell has felt the pain yet.

This is a game without winners! The final outcome of the US debt renewal will determine the fate of the US economy and even the global market. The peak confrontation of finance and politics has already begun, and the next climax is about to unfold!