The Trump Administration Still Doesn't Understand What Has Happened...China Left The Room

They Still Don't Understand What Has Happened

The Trump team still doesn't understand

Point #1

China has left the room

China already responded

China is responding

Of course there will be some damage but they were prepared for this day

They aren't negotiating

They have literally just moved on

That's a decision not a negotiation

US tech will collapse...Is collapsing

Amazon will collapse

And much worse for the U.S. and the world

There is no gray area here

There is only one move and by whom that will begin to undo the damage that's already snowballing

China has clearly stated what that move is

For Trump to remove the tariffs

Point #2

They are either utterly incompetent or doing this on purpose.

With $8 Trillion due for refinancing, they need interest rates to plummet. Bessent made it clear their focus is the BOND MARKET. Bonds are rising which means interests rates are falling, worldwide.

But U.S. bonds are not cooperating. So they need to cause economic upheaval to cause interest rates to go down because this eight trillion is due for refinancing. That plan is completely backfiring with disastrous results.

They actually believed that wouldn't happen but here we are. The situation is getting even worse than it was at the beginning. Is it possible that's exactly what they want?... They Need this economic chaos. They won't allow any good news. They aren't announcing any good news. They are doing just the opposite.

Why? So that all the world runs to the safety of US bonds and the interest rate gets down to 3% to refinance that eight trillion. . But the rest of the world was already at its wits end with America's nonsense and isn't cooperating.

The two most important parties in this story are the ones that are not cooperating with this crazy plan. The bond market and China. So next?

This market disaster is going to continue and the FED is going to have to once again step in. When they do, it will fix nothing. The US stock market will roar higher on the announcement, etc

But the big economic & trade damage is done and isn't gonna be reversed.

That’s our current state of affairs.

Point #3

They are NOT going to fix it. Not Trump. Not anyone. These economic deteriorations & gyrations are simply going to continue morphing for decades longer.

Whoever marches to the front of the U.S. political leadership line, they are NOT going to fix much at all. The system is as broke as broken & corrupted as it gets. They won't default either, they'll just keep rotating the ways they add money to the system whether its QE or reverse repo or whatever names they give it.

All the while the trillions of dollars now in the hands of the private billionaire individuals, hedge funds, corporations, private equity will never re-enter the system, never be part of M2 money supply, they sucked it right out and they're not going to put it back

Yes, the stock market will crash and go up and crash and go up and double again while the cost of everything on avg in that country will be 50% higher than it is today, etc. whether that’s 5 - 10 - 20 years down the line.

The part I can't figure out, nobody can, is what will come first, a deflationary spiral type disaster or a stagflation type disaster?

Right now its looking like a stagflation disaster...why? Because the world is quietly but surely leaving the U.S. bond market so that means come hell or high water real market interest rates are not going to go down.

Furthermore there is going to be inflation of goods prices so that's a double whammy pushing up real interest rates no matter what the FED does....what a mess