The Fun Games FED People Play

Letter to Ephesians: First, lib comedian Maher admits “I was wrong about Trump’s tariffs” causing a recession, now bitterly anti-tariff WSJ at least changes the subject by admiring Trump’s creative managing of America’s debt, i.e., by waiting for rates to fall before issuing more long-term bonds.

And we thought libs & anti-tariff critics were convinced No. 47 could do no right when it comes to, well, anything. Then, Maher goes on a podcast lauding Trump’s economy & WSJ admiringly writes how “Trump and Bessent Bring New Style to Managing America’s Debt.” In fact, the article says, “The Trump administration is making government borrowing exciting again.” Huh? In the past, we’re told, our Treasury gurus selling Uncle Sam’s bonds have been “boring by design.” Apparently, gov't officials purposely downplayed their offerings because they worried too much optimism could trigger speculation and uncertainty, eventually driving rates higher. But, no more, as Trump is calling himself “the nation’s top bond salesman,” and his Treasury Secretary is talking openly about waiting for interest rates to come down so the government’s own borrowing costs would be minimized.

How clever is that? Of course, the backdrop drama in this “bondsmanship” game is Trump’s outspoken wish Federal Reserve Chair Jerome Powell would either cut the agency’s interest rate now or RESIGN. And, since he’s apparently not going to do either until at least September , the Trump-Bessent team are only issuing new debt that matures in 6 to 9 months, i.e., until Powell’s term expires next year & he’s replaced. Even more clever? Such thrilling games economists play!

Davd Soul