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Trumps actions are by design to lower interest rates so we sell $9 trillion in new bonds

Posted on 4/5/25 at 2:22 pm
Posted by hawgfaninc
https://youtu.be/torc9P4-k5A
Member since Nov 2011
49695 posts
Posted on 4/5/25 at 2:22 pm

quote:

Everyone should read this link and understand the implications.

We have $29 trillion in debt held by the "public."

33% of that debt, or $9 trillion, will mature in the next 12 months. That means we will need to sell new bonds to raise the money to pay off that $9 trillion to the holders of the bonds that will mature.

Five years ago, the AVERAGE interest rate across all of the national debt was 2.32%. That meant the mix of T-Bills (2-12 months) to bonds (up to 30 years) could be averaged out to 2.32%.

Today, because of the borrowing during the Biden Admin post COVID using mostly 3 and 5 year bonds, the average interest rate across all the debt is now 3.35%

That 1.03% increase is actually a nearly 50% increase in borrowing costs across the entirety of the debt.

That's why interest on the national debt this year exceeds the Pentagon budget.

What Pres. Trump is doing by design is to drive down interest rates so that when we have to sell $9 trillion in new bonds over the next 12 months, the interest rates on the new bonds will be less than the interest rates on the bonds sold that were sold by the Biden Admin to fund the nonsense crapola that DOGE has been exposing.
Posted by High C
viewing the fall....
Member since Nov 2012
57772 posts
Posted on 4/5/25 at 2:24 pm to
Interesting
Posted by David_DJS
Member since Aug 2005
20889 posts
Posted on 4/5/25 at 2:27 pm to
quote:

Trumps actions are by design to lower interest rates so we sell $9 trillion in new bonds

No doubt about it. This is the #1 objective. Everything else related to fairness of trade and reshoring manufacturing are secondary in importance.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
88045 posts
Posted on 4/5/25 at 2:28 pm to
Bessent has said this
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
282985 posts
Posted on 4/5/25 at 2:28 pm to
Laid out earlier this year

Mar A Lago Accord

quote:


Being called the “Mar-a-Lago Accord,” it would involve several stages. First, the U.S. would try to force some foreign creditors, which hold large amounts of long-term Treasury notes, to trade them in for special extra-long-term Treasurys.

quote:

the replacements would be 100-year, non-tradeable zero-coupon bonds. That means the bonds wouldn’t pay interest. Instead, they would sell at a discount from their face value. Holding them to maturity would be the only way to recoup the investment and the accompanying return. If one of the countries needed cash, they could borrow temporarily from the Federal Reserve against the bond.



quote:


Another aspect is the existing push on tariffs. The Trump administration wants to use them in the process of restructuring global trade and weaken the dollar, although they say outwardly that they want a strong dollar. The reason for a weaker dollar would be to reduce borrowing costs, as Jim Bianco, founder of research and analysis firm Bianco Research, told Bloomberg. If the dollar is worth less, so is the total debt.

Posted by TDTOM
Member since Jan 2021
21334 posts
Posted on 4/5/25 at 2:29 pm to
This is one of the more plausible conspiracy theories I have heard. Much better than him tanking the market so Buffet can take over the world.
Posted by Bunk Moreland
Member since Dec 2010
62836 posts
Posted on 4/5/25 at 2:34 pm to
Posted by Powerman
Member since Jan 2004
165617 posts
Posted on 4/5/25 at 2:35 pm to
quote:

This is one of the more plausible conspiracy theories I have heard.

It's not really a conspiracy theory if it's a publicly stated plan
Posted by lsuguy84
Madisonville
Member since Feb 2009
25038 posts
Posted on 4/5/25 at 2:37 pm to
Posted by TDTOM
Member since Jan 2021
21334 posts
Posted on 4/5/25 at 2:43 pm to
quote:

It's not really a conspiracy theory if it's a publicly stated plan


I didn’t know it was publicly stated. GFY.
Posted by SaturatedPhat
Member since Jul 2024
1180 posts
Posted on 4/5/25 at 2:46 pm to
We’ve been talking about this for weeks. Why is everyone posting this lately as if it is new information?
Posted by hawgfaninc
https://youtu.be/torc9P4-k5A
Member since Nov 2011
49695 posts
Posted on 4/5/25 at 2:48 pm to
Good info deserves to be repeated because not everyone has heard it and those that did might see a different perspective on it.
Posted by Geauxgurt
Member since Sep 2013
11960 posts
Posted on 4/5/25 at 2:53 pm to
Except this approach will lead to a weaker dollar, so more inflation, so the guy spitting this garbage doesn’t know shite.
Posted by cameronml
Member since Oct 2007
1934 posts
Posted on 4/5/25 at 2:56 pm to
If this was the case, why doesn’t Trump just say that?

Why do his supporters have to hunt around trying to guess why he does things, hoping they’re for the best?
Posted by High C
viewing the fall....
Member since Nov 2012
57772 posts
Posted on 4/5/25 at 2:57 pm to
quote:

We’ve been talking about this for weeks. Why is everyone posting this lately as if it is new information?


I hate these posts.

“I know something that you didn’t. Where have you been? It’s like you have a life or something.”
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
282985 posts
Posted on 4/5/25 at 2:58 pm to
quote:



Why do his supporters have to hunt around trying to guess why he does things, hoping they’re for the best?


They arent the type to do independent research. Its an influencer-driven movment.
Posted by GBPackTigers
Louisiana
Member since Sep 2009
1459 posts
Posted on 4/5/25 at 2:58 pm to
This is too advanced macroeconomics for our resident TDS posters to understand. All they see are stocks going lower and the TDS time bomb goes off in their head…it’s sad they talk on here about topics which they know nothing about.
Posted by udtiger
Over your left shoulder
Member since Nov 2006
108305 posts
Posted on 4/5/25 at 2:58 pm to
It's almost like they kinda know what they're doing
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
452329 posts
Posted on 4/5/25 at 2:58 pm to
quote:

Why do his supporters have to hunt around trying to guess why he does things, hoping they’re for the best?


Art of the Deal
Posted by High C
viewing the fall....
Member since Nov 2012
57772 posts
Posted on 4/5/25 at 3:01 pm to
quote:

Why do his supporters have to hunt around trying to guess why he does things, hoping they’re for the best?

Art of the Deal


We already know how you feel. Do you care to address the topic?
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