2025, April 15 - April 21

The US Stock Market saw another dump after President Trump posts on social media, “There can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.” He was of course talking about FED chair Jerome Powell for not lowering interest rates as he hoped for. We are almost at the 100-day mark of President’s Trump’s occupation in the White House. According to CNBC’s Stephanie Ruhle and Elliot Metz, every time there is a stock market panic, investors from all over the world scramble to purchase the safest assets, which are Treasury bonds. Bond prices often rise due to supply and demand as more investors seek to purchase them, but the "yield," or amount the bonds will repay, decreases concurrently. The reasoning is that locking in a guaranteed return is preferable to taking a chance on money in a stock market that is prone to volatility. Because interest rates on a variety of loans, including credit cards, auto loans, and mortgages, are linked to these bonds, consumers profit when Treasury yields decline because borrowing becomes more affordable. The currency is depreciating, bond interest rates are rising, and investors are selling off Treasuries. We will import goods at a greater cost as a result, and this is before we even account for Trump's tariffs, which will only raise the total cost. From all of this fear, there have been rumors of a possible “super bond” for a 100 year long repayment system. Although it seems very unlikely.

In a recent Youtube video I watched by Andrei Jikh, he explains the current tensions of US vs China and the possible firing of Jerome Powell. In the first few minutes he claims there is a technique (usually for magicians) called equivoque where an option is given like a free choice but in reality they make you pick a specific card.The significance of this trick is that there are various kinds of outcomes that seem equal which makes the ‘magical’ appearance. He says “the country has to have multiple outcomes which have to look equally successful (6:21). 1. The US is increasing their tariffs so other countries drop their own tariffs (which is beneficial to the US skilled industry). 2. Lower interest rates (which has not been working out lately). The US needs to finance over $9 trillion of debt from tariff-induced inflation. So not lowering interest rates “would be a nightmare.”