I think it is a major error to assume that the things that Trump is doing is because he is "stupid" or "foolish". Instead it is much safer to assume he is "crazy like a fox" and that everything he is doing is part of a plan to accomplish exactly what we are seeing happen. With that in mind consider what he is doing.
1. Tariffs on everyone.
then
2. No just Tariffs on China
then
3. No, we will pause tariffs on certain key products
then
4. But beware, cause we may put the tariffs on them in the future.
then
5. China and the US begin a tit for tat escalation to absurd levels of tariff.
One thing all investors hate is uncertainty, and you have seen this in the stock markets as they are extremely riled up. You measure the level of "being riled up" by the VIX, a measure of volatility and it is extremely high.
One result of all this is that interest rates on the ten year treasury and the 30 year treasury are both up significantly. That means several things. first, our interest payments on $36 trillion debt will increase. Second thing is it indicates it is harder to find buyers for our debt and that in turn could either mean the debt continues to increase at a faster rate or the Fed prints the money causing inflation to rise at a faster rate. We can see the rate of the depreciation of the dollar in the price of Gold which for the last 15 years has increased at an annualized rate of 9%. That means investing in bonds is a losing proposition, especially when there is a gold backed currency as an option.
This reminds me of these verses in Luke 19
41 And when he was come near, he beheld the city, and wept over it, 42 Saying, If thou hadst known, even thou, at least in this thy day, the things which belong unto thy peace! but now they are hid from thine eyes. 43 For the days shall come upon thee, that thine enemies shall cast a trench about thee, and compass thee round, and keep thee in on every side, 44 And shall lay thee even with the ground, and thy children within thee; and they shall not leave in thee one stone upon another; because thou knewest not the time of thy visitation.
That which has been is that which shall be. All three gospels record different events which I believe is because they are speaking to three different groups. This account is not in Matthew or Mark. I think Luke is speaking to the church, especially in the US right before the rapture. They don't see that the world is digging a trench about the church, they have compassed you round about, and they shall raise you to the ground. Is this a reference to what happened to Jerusalem and the temple? Of course it is. But in Luke I see this event as being prophetic for what happens to the apostate church. These are the ones that should have known the time of her visitation but didn't.
45 And he went into the temple, and began to cast out them that sold therein, and them that bought; 46 Saying unto them, It is written, My house is the house of prayer: but ye have made it a den of thieves.
Immediately after saying this Jesus tears down the financial system. What is DOGE doing? It is identifying all the thieves in the government and casting them out.
So then I don't think Trump is behaving in a foolish way. Instead I believe he is deliberately tearing down the US dollar to replace it with a one world digital currency. Obviously he won't do that, but he will make it completely untenable for the US to continue with our fiat currency as we have been. There is a reason they talk about the full faith and trust in the US currency. If you don't have the full faith and trust in the US, then investors will flee. Trump and his advisors know that so I don't think this is foolish, I this is the plan.
1. Tariffs on everyone.
then
2. No just Tariffs on China
then
3. No, we will pause tariffs on certain key products
then
4. But beware, cause we may put the tariffs on them in the future.
then
5. China and the US begin a tit for tat escalation to absurd levels of tariff.
One thing all investors hate is uncertainty, and you have seen this in the stock markets as they are extremely riled up. You measure the level of "being riled up" by the VIX, a measure of volatility and it is extremely high.
One result of all this is that interest rates on the ten year treasury and the 30 year treasury are both up significantly. That means several things. first, our interest payments on $36 trillion debt will increase. Second thing is it indicates it is harder to find buyers for our debt and that in turn could either mean the debt continues to increase at a faster rate or the Fed prints the money causing inflation to rise at a faster rate. We can see the rate of the depreciation of the dollar in the price of Gold which for the last 15 years has increased at an annualized rate of 9%. That means investing in bonds is a losing proposition, especially when there is a gold backed currency as an option.
This reminds me of these verses in Luke 19
41 And when he was come near, he beheld the city, and wept over it, 42 Saying, If thou hadst known, even thou, at least in this thy day, the things which belong unto thy peace! but now they are hid from thine eyes. 43 For the days shall come upon thee, that thine enemies shall cast a trench about thee, and compass thee round, and keep thee in on every side, 44 And shall lay thee even with the ground, and thy children within thee; and they shall not leave in thee one stone upon another; because thou knewest not the time of thy visitation.
That which has been is that which shall be. All three gospels record different events which I believe is because they are speaking to three different groups. This account is not in Matthew or Mark. I think Luke is speaking to the church, especially in the US right before the rapture. They don't see that the world is digging a trench about the church, they have compassed you round about, and they shall raise you to the ground. Is this a reference to what happened to Jerusalem and the temple? Of course it is. But in Luke I see this event as being prophetic for what happens to the apostate church. These are the ones that should have known the time of her visitation but didn't.
45 And he went into the temple, and began to cast out them that sold therein, and them that bought; 46 Saying unto them, It is written, My house is the house of prayer: but ye have made it a den of thieves.
Immediately after saying this Jesus tears down the financial system. What is DOGE doing? It is identifying all the thieves in the government and casting them out.
So then I don't think Trump is behaving in a foolish way. Instead I believe he is deliberately tearing down the US dollar to replace it with a one world digital currency. Obviously he won't do that, but he will make it completely untenable for the US to continue with our fiat currency as we have been. There is a reason they talk about the full faith and trust in the US currency. If you don't have the full faith and trust in the US, then investors will flee. Trump and his advisors know that so I don't think this is foolish, I this is the plan.