Let's talk about the Trump admin posting its economic illiteracy on main....

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Belle of the Ranch 3 min 1 speaker 5 chapters transcribed 1 month ago
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What did the Trump administration’s Treasury account post about US Treasuries?

Belle of the Ranch 0:01
Well, howdy there internet people it spell again. So today, we're going to talk about the Trump administration posting its economic illiteracy on Maine. I have never seen an official government social media account post something so widely mistaken for parody. Not because the information was wrong. It's right. But because they thought it was a good thing when it's actually really bad. The official Treasury Department's social media account and I can't stress this enough. I checked.

Why does the host say strong bond returns actually signal economic trouble?

Belle of the Ranch 0:38
It's the official Treasury Department account. Posted quote. US Treasuries are having their best year since twenty twenty. And the investors who had confidence and faith in President Trump's economic policies have been richly rewarded. Never bet against POTUS or America. They even posted a bar graph showing it's true and labeled the bars with the high bond market returns with trump. Look, it's true, we haven't had returns like this since well, the last time Trump was in office. Specifically twenty twenty.

How does the episode explain the relationship between bond yields and inflation risk?

Belle of the Ranch 1:21
I'm sure we all remember how well the economy was doing in twenty twenty. The reason bonds do well in bad economic times is because investors are concerned about inflation, interest rates, rising debt, like that created by his one big beautiful bill, and so on. And because of that, they put their money in safer assets. When most people put their money into bonds, they are quite literally betting against Trump. Or at least requiring better odds. When they have the market they've had since Trump took over. The bet is that it's riskier to take on US debt, because Trump might actually crash everything. And because of that additional risk, they can demand more to take the debt.

What is the significance of the “Franklin the Turtle” graphic shared by the Treasury secretary?

Belle of the Ranch 2:12
To say this clearly The bond market hitting the numbers it has been is bad actually. And the numbers are generally seen as a sign of economic downturn worries. But then this whole thing got more bizarre. My immediate assumption was that a social media staffer who didn't understand economics and therefore didn't know what they were looking at was just out there being Trump's hype man while not realizing they were drawing attention to something any sane president would want to keep out of the headlines. But then, for no apparent reason at all, Treasury Secretary and soybean farmer Scott Bessent shared the graph while posting an image of Franklin the Turtle wearing a MAGA hat and counting money with the title Franklin the Turtle Bought U.S.
Belle of the Ranch 3:08
Treasuries.

Why does the host think the Treasury’s social‑media post is a bizarre warning about the economy?

Belle of the Ranch 3:11
I refuse to believe Bessent doesn't actually know the significance of the bond market's performance. In simplest terms, that his boss hurt the economy. I honestly have no earthly idea why they're trying to draw attention to a negative indicator for the economy. If I thought they had a sense of humor on that level, said I would think they're actually making fun of Trump in a way he won't understand. And people at Treasury are laughing about all the signs that they broke the economy. Remember how unseriously they're taking all of the warning signs later. Anyway. It's just a thought. Y'all have a good day.

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