Raphael Nam

The way it works is that the government sells bonds to investors We're talking banks, other countries, individual people Think of it as a loan The government needs to borrow money to function And to afford all of its spending These investors are the bank And they're lending their money to Uncle Sam Then Uncle Sam promises to pay back these investors with interest And when bond investors get spooked They demand more interest from the government And that's exactly what's happening now

The way it works is that the government sells bonds to investors We're talking banks, other countries, individual people Think of it as a loan The government needs to borrow money to function And to afford all of its spending These investors are the bank And they're lending their money to Uncle Sam Then Uncle Sam promises to pay back these investors with interest And when bond investors get spooked They demand more interest from the government And that's exactly what's happening now

Well, there are two critical things to the economy that could get worse under a new Trump administration, inflation and the government's finances. Now, let's tackle inflation first. Although Trump has promised to lower inflation, many bond investors believe he could actually do the opposite and take tariffs. Trump is proposing a wide range of tariffs. And the U.S. imports a lot of things.

Well, there are two critical things to the economy that could get worse under a new Trump administration, inflation and the government's finances. Now, let's tackle inflation first. Although Trump has promised to lower inflation, many bond investors believe he could actually do the opposite and take tariffs. Trump is proposing a wide range of tariffs. And the U.S. imports a lot of things.

Well, there are two critical things to the economy that could get worse under a new Trump administration, inflation and the government's finances. Now, let's tackle inflation first. Although Trump has promised to lower inflation, many bond investors believe he could actually do the opposite and take tariffs. Trump is proposing a wide range of tariffs. And the U.S. imports a lot of things.

Clothes, toys, shoes, tech gadgets, you name it. Tariffs obviously make those things more expensive. Trump also wants to cut taxes. For example, he wants to exempt workers in restaurants and other places from paying taxes on tips. All of that could make the country's finances a lot worse. And they're already pretty bad.

Clothes, toys, shoes, tech gadgets, you name it. Tariffs obviously make those things more expensive. Trump also wants to cut taxes. For example, he wants to exempt workers in restaurants and other places from paying taxes on tips. All of that could make the country's finances a lot worse. And they're already pretty bad.

Clothes, toys, shoes, tech gadgets, you name it. Tariffs obviously make those things more expensive. Trump also wants to cut taxes. For example, he wants to exempt workers in restaurants and other places from paying taxes on tips. All of that could make the country's finances a lot worse. And they're already pretty bad.

The budget deficit in the last fiscal year was $1.8 trillion, the third highest on record.

The budget deficit in the last fiscal year was $1.8 trillion, the third highest on record.

The budget deficit in the last fiscal year was $1.8 trillion, the third highest on record.

Because they can essentially tell the government, we won't be lending you any more money. And that would put the government in a pinch. Now, if the interest of the U.S. pays on its bond surges, and it can also create a lot of pain to the country's finances. And these fears in bond markets can spread to other markets like stocks, finance.

Because they can essentially tell the government, we won't be lending you any more money. And that would put the government in a pinch. Now, if the interest of the U.S. pays on its bond surges, and it can also create a lot of pain to the country's finances. And these fears in bond markets can spread to other markets like stocks, finance.

Because they can essentially tell the government, we won't be lending you any more money. And that would put the government in a pinch. Now, if the interest of the U.S. pays on its bond surges, and it can also create a lot of pain to the country's finances. And these fears in bond markets can spread to other markets like stocks, finance.

Fear is pretty contagious after all, and it has happened before around the world. About two years ago in the United Kingdom, bond investors revolted. It helped create a financial storm, and it took down the prime minister in a matter of weeks. There's even a term for bond investors that wield their power this way, bond vigilantes. These investors could stop buying bonds.

Fear is pretty contagious after all, and it has happened before around the world. About two years ago in the United Kingdom, bond investors revolted. It helped create a financial storm, and it took down the prime minister in a matter of weeks. There's even a term for bond investors that wield their power this way, bond vigilantes. These investors could stop buying bonds.

Fear is pretty contagious after all, and it has happened before around the world. About two years ago in the United Kingdom, bond investors revolted. It helped create a financial storm, and it took down the prime minister in a matter of weeks. There's even a term for bond investors that wield their power this way, bond vigilantes. These investors could stop buying bonds.

It's effectively telling the government, like I was telling you, we're not going to lend you any more money unless you reconsider some of your policies. Now, the U.S. is obviously much bigger than the U.K., and we also don't know what Trump is actually going to do. But things could get rocky very quickly if he does all the things he's promised.

It's effectively telling the government, like I was telling you, we're not going to lend you any more money unless you reconsider some of your policies. Now, the U.S. is obviously much bigger than the U.K., and we also don't know what Trump is actually going to do. But things could get rocky very quickly if he does all the things he's promised.

It's effectively telling the government, like I was telling you, we're not going to lend you any more money unless you reconsider some of your policies. Now, the U.S. is obviously much bigger than the U.K., and we also don't know what Trump is actually going to do. But things could get rocky very quickly if he does all the things he's promised.