QUESTION: What do you think of Trump threatening to cut rates or cut off trade with everyone if the US has a trade deficit? And while you are at it, what about this deal with Putin?
BR
ANSWER: Trump is a borrower, not a lender. There are two sides to every coin and then there is the edge. Trumps want cheap rates to borrow, but that reduces the income for the retired people and cash rich companies. If rates are so low then capital will NOT lend and you invest instead. The trailing dividend yield on the Dow Jones Industrials is about 1.83%.
AAA US Corporate Index Effective Yield: This broad index yield was 5.81% as of October 1, 2026 compared to the US Treasury rate of 5.667%. The AAA Spread (Late 2025) spread narrowed to just 30 basis points in October 2025, compared to an average of 67 basis points from 2012 to 2019. The shift from public to private is underway thanks to the Sovereign Debt Crisis. Here is a chart from the Great Depression. The spread peaked a 1.3% in 1932 at the bottom of the stock market and the Great Depression in real terms. That spread fell to .47 by 1937 thanks to FDR and the appearance of socialism.
Look, I do not blame Trump, he is operating on what we were all taught in school back then that under Keynesian Economics, the government could manipulate society by simply raising or lowering interest rates. Sorry, what they taught us in school was all propaganda. Interest rates rise in bull markets and decline in recessions. Someone needs to have a talk with Trump because this latest threat will in fact cause a serious economic catastrophe into 2028. Someone need to show him these charts. Rates rose throughout his first terms and they called it the Trump Rally. Nobody paid attention to the interest rates.
Look, it is the biggest lie that is propelled by the media who constant harp on what the Fed will do next. It is always from the borrow side, never the investor side. Rate simply rise in EVERY bull market because there is a demand for money. They DECLINE in depressions and recessions BECAUSE the demand collapses.
Lower rates are indicative of a recession and bear markets – not booming economies. It does not matter what I say or what proof I present, the press will always keep up the fakes news and never even once will they every actually investigate what they say is true or false.
CNBC and every other LEFT-SOCIALIST-MEDIA organization is bashing Trump because they can never bring them to ever write a single neutral word. CMBC wrote:
“But commentators and critics were quick to highlight contradictions between the new policy and prior efforts by the U.S. to clamp down on Russian oil sales.”
They never want to tell the truth about anything. Trump asked Zelensky not to attack refineries in Russia. He did the next day. He has said his country comes first. So while they print nothing but Neocon propaganda how they are fighting for Democracy in Ukraine when Zelensky refuses to hold elections and he refused to honor the peace agreement, Minsk Agreement, which to allow the Donbas to have a vote on Separation, while any election Russia has he claims is fake and rigged, I hope Trump passes an Executive Order that every journalist that puts out the BS should be drafted, handed a gun, and sent to the front lines in Ukraine. They are traitors to the American people and always cheer to send our boys to die for the Neocon endless war machine. If you want to lie to force people to vote they way you want them to, go get a soap box and go to Central Park and preach in NYC or Speakers Corner in Hyde Park for te Brits.
Zelensky and Europe will ensure that whatever deal Trump tries to cut with Putin they will sabotage. So get ready, this winter, we will see Heating Oil (Diesel) soar to the $6 and it could even go to $8 by next March. This disgusting fake news get their taking points from the Neocons so they will NEVER check a single fact.
Remember when the Neocons had the press actually acuse Putin of blowing up his own pipeline? Shortly after the explosions, it was primarily Western officials and media who initially pointed the finger at Russia. Ukraine also accused Russia almost immediately. That was a fake news – the real distortion of reality. Then the stupidity of politicians like the Poland’s PM who praised the man for destroying Nord Stream Pipeline showing his ignorance what that would do to Germany and the EU economy.
Germany has finally arrested the Ukrainian who blew up Nord Stream and my sources have always pointed to Zelensky. He destroyed the Germany economy and the EU, and then has the audacity to beg for endless money to continue his Neo Nazi objectives.
I use to tell my daughter if she ever brought home a prosecutor, she will never be allowed in the house again. Today, that might have to be expanded to journalists.
