
The truth is sometimes confusing.
The day before, the United States vowed to impose tariffs on the world and that its tariff policy would never change; the next day, Trump announced that the tariff increase would be suspended for 90 days...
What happened behind the nearly 180-degree turn?
An indisputable fact is the abnormal movement of the U.S. bond market.
I saw that CNN reported that when the stock market plummeted and trillions of market value disappeared, Trump was unmoved and shrugged; but when the bond market panicked, he blinked and had to take action.
Trump can't help but be anxious.
The United States now has 36 trillion US dollars in national debt. If the interest rate remains at 4.5%, the United States' interest expenditure alone will account for a quarter of its fiscal revenue in a year; if the interest rate soars, this is a major loss that Musk cannot make up for no matter how many layoffs he makes, and the United States may really go bankrupt.
Trump himself admitted that the bond market was becoming "disturbing."
That is to say, the abnormal movement of the bond market was the last straw that forced Trump to change his mind.
Who is selling U.S. debt?
Many people think of the first thing, and we don't need to avoid it: China!
China may have 1,000 reasons to take measures, but it's really not China.
I saw that Charles Gasparino, a Fox Business reporter, disclosed in a live broadcast on the 10th that it was not China but Japan that sold off U.S. debt and caused the U.S. debt interest rate to rise.
He said: "A manager of a large fund company told me that it was not China but Japan that caused the bond market to sell off yesterday. Japan is the largest holder of our bonds...If bonds are sold on a large scale, it means that people have lost confidence in the U.S. economy. This is why we have implemented a 90-day tariff freeze. If you can't sell your treasury bonds, the game is over..."
There is a lot of information, and we can sort it out.
1. The source of the news is Fox, which is the media base supporting Trump. If the news is not very conclusive, it is impossible for it to appear. Therefore, we see that when the reporter discloses this news, he must say: I am a patriot...
2. The abandonment of US debt and the sharp rise in interest rates are the most critical factors forcing Trump to change his course. We have explained it above and will not say more.
3. It is not China that is selling, but Japan. This is also what Americans are most surprised about. The Japanese government stated a few days ago that it would not sell US debt; but the words were still fresh in their ears, and the action came, making Trump flustered. 4. One point I have to mention is that I also saw a disclosure that although it was Japan that sold off its stocks, it was not the Japanese government, but a Japanese bank. The bank had to sell off US bonds to make up for the sharp drop in its heavily held stocks. It was like robbing Peter to pay Paul. But the Bank of Japan is also Japan. 5. I saw that many American netizens criticized that Japan and China were joining forces to deal with the United States. This is not necessarily true. But there is one thing I think the Fox reporter said is right: if US bonds are sold on a large scale, it means that people have lost confidence in the US economy. If you can't sell your bonds, the game is over. But Trump is probably just swallowing his anger.
If what is said above is true, then this is actually a series of traps.
If he had not launched a tariff war, the stock market would not have plummeted; if the stock market had not plummeted, Japanese institutions would not have faced huge losses; if it had not been for huge losses, they would not have urgently sold U.S. bonds to close their positions; if U.S. bonds had not been sold, U.S. bond yields would not have soared; if U.S. bond yields had not soared, Trump would not have urgently adjusted tariff policies...
He has trapped himself in it. It seems that Japanese institutions have cheated Trump, but in fact, it is Trump who has cheated investors.
Finally, what do you think?
Let's just briefly summarize three points.
First, Trump also has weaknesses.
The stock market is a weakness, and the bond market is even more of a weakness.
The sale of an institution can cause such a big consequence; what if a country takes action?
From another perspective, we don't talk about selling, after all, the United States needs to operate and continue to sell treasury bonds, but if a country has lost its credibility, who would dare to buy the treasury bonds of this country?
I saw that CNN quoted an economist as saying: "When you damage your international relations, international investors are less likely to buy your assets - we saw some of this yesterday."
Second, the president is still confident.
I saw that in response to the sudden change in tariff policy, an American reporter asked Trump: Why did you just say that the tariffs would not be suspended, so why did you suspend them again?
Trump is still confident: People must learn to be flexible. I can say that there is a wall here, and I will go through it no matter what. But if you keep going forward, you can't pass through this wall. Sometimes, you have to go under the wall, go around the wall, or climb over the wall...
It has to be said that 1. Trump's eloquence is amazing; 2. Trump has the skill to pass through walls.
I saw that some people, including the US Treasury Secretary, praised the president for his strategic planning and finally successfully targeting Dongda, etc.
It makes people laugh and cry.
Is this kind of frequent changes of orders also considered a success?
Third, it is really speechless.
Specifically speaking about this tariff, the Trump administration announced that it would increase tariffs on China to 125%. But a day later, the US side clarified that it was wrong and the actual tariff was 145%.
Although there is no essential difference between 125% and 145%, it is just a number game. But such an important tariff can be wrong, what do these people do for a living?
Wall Street was so angry that it turned down and the stock market plummeted again. Because of this kind of intimidation and blackmail, the Chinese will definitely not fall for it.
Oh, we can't say that the United States is only targeting China. Didn't the United States impose tariffs on even the uninhabited Penguin Island?
No wonder Musk scolded: Navarro, you are an idiot, dumber than a brick...
It's not just Navarro. I just saw a video in which Linda McMahon, the newly appointed U.S. Secretary of Education, talked about school AI (artificial intelligence) education, and even said it was A1.
AI and A1 do look similar, but the others were stunned. What are A2 and A3? This is the US Secretary of Education. Does she really understand AI?
Personal opinion, does not represent any organization
Let's just watch the show
Watch the world bustling about
Happy
Just 50 cents to encourage
You guys continue
Come on, Japan