Intentionally nuking stocks causes investors to retreat for safety in bonds specifically treasuries. Demand for treasuries drives the interest rates on them down. The US has to refinance $10 trillion of existing debt this year. By driving rates down it save the federal government hundreds of billions in interest payments.
He has actually reposted a video confirming this outlook.
Another angle is he is targeting China. China is in a precarious domestic economic sitaution as well. It weakens China by reducing its exports. In addition tariffs if high enough for long enough encourage local manufacturing. If we go to war with China over Taiwan, it will be very easy for China to convert existing commercial factories to produce military goods. Much harder for us as so much of our manufacturing infrastructure has lain fallow. Its not a good idea to go to war with the country that makes everything you rely on.
I'm not saying these are valid ideas or it will play out like that. I'm saying this is what admin is thinking.
Also if you feel like a read, this is a paper by Trumps leading economic advisor Stephen Miran
He has actually reposted a video confirming this outlook.
Another angle is he is targeting China. China is in a precarious domestic economic sitaution as well. It weakens China by reducing its exports. In addition tariffs if high enough for long enough encourage local manufacturing. If we go to war with China over Taiwan, it will be very easy for China to convert existing commercial factories to produce military goods. Much harder for us as so much of our manufacturing infrastructure has lain fallow. Its not a good idea to go to war with the country that makes everything you rely on.
I'm not saying these are valid ideas or it will play out like that. I'm saying this is what admin is thinking.
Also if you feel like a read, this is a paper by Trumps leading economic advisor Stephen Miran
https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...