A tax funded wealth shift to him and his "investigators"

A week after Donald Trump shocked the world by imposing punitive tariffs on America's trading partners, he shocked it again today when he announced a ninety-day pause on the biggest duties against most countries"notably excepting China, among a handful of others"while leaving in place a ten-per-cent across-the-board levy.

The Administration tried to spin the midday move, which sent stocks rocketing upward, as an example of the President's dealmaking prowess, claiming that the tariffs had inspired new trade deals with many countries. But the reality seems to be that Trump caved in the face of alarming disruptions in the huge market for U.S. Treasury bonds, which the American government uses to finance itself.

Trump's announcement of his "reciprocal" tariffs last week, which weren't reciprocal at all, sent the markets into turmoil. The White House seemed to have steeled itself against an adverse reaction in the stock market, even as, by Wednesday morning, the total market had fallen by about twenty per cent from its high. What really spooked financial commentators"and Trump himself, as he conceded later on Wednesday, speaking outside the White House"was the turbulence in the bond market, where yields spiked on Monday and Tuesday.

A big sudden rise in bond yields equates to a big sudden fall in bond prices"which can be a sign that some financial institutions are in distress and being forced to sell at any price. On Tuesday, reports emerged that the source of this trouble might be the "basis trade," a process in which hedge funds borrow gobs of money to profit on the tiny differences in price between Treasuries and derivative securities, contracts designed to replicate the performance of these same Treasuries. When bond prices move unexpectedly, basis traders can face big losses and be subjected to margin calls, forcing them to raise cash by selling some of their portfolio. And that selloff, in turn, forces prices even lower.

It's not entirely clear that this was the actual cause of the rising yields in the bond market, but by this morning Lawrence Summers, a former Treasury Secretary, warned online that "developments in the last 24 hours suggest we may be headed for serious financial crisis wholly induced by US government tariff policy." The current Treasury Secretary, Scott Bessent, himself a former hedge-fund manager, initially shrugged off the threat. But by Wednesday afternoon Bessent was spinning the capitulation as best he could. Referring to Trump, he said, "It took great courage for him to stay the course."

If that was meant as an inside joke, Bessent didn't let on. More likely, he was trying to assuage his boss's bruised ego. In the end, the markets forced Trump to do something sensible"announce a timeout"but a lot of damage has already been done to 401(k) plans, business planning, consumer confidence, and faith in the U.S. government. None of these things will be repaired easily or quickly.

John Cassidy
Cassidy has been a New Yorker staff writer since 1995, and writes The Financial Page, a column about economics and politics.

Trump pump and dump

69!!!!!!!!!!!!!!!!!!!!

Elect a clown get elephant ---- on your head

We're #1 at #2

Trump has just facilitated the biggest pump and dump transfer of wealth, to loyal MAGA patriots, in history.

"panicans" (he's proud he invented that word)

When he had "ScaredyCrats" right there in front of him.

Buy low, sell high!

Because of international posterior bussing, Trump says.

Flippity Floppitty

When Uvalde happened, I said our constitutional republic was finished. If sworn police won't enter to defend citizens from being slaughtered, then it's over. Their constitutional rights were rendered meaningless.

Furthermore, if citizens can be deported without any sort of process, then the experiment is gone.

Almost made it to 250. I guess it's about time.

Great lineage from Mao and Pol Pot.

Chinese People Keep Comparing Trump's Authoritarianism to Mao and Xi Jinping
"Mao Zedong of America has been born!"

Start with the mentally slow. Then the homeless. Then the people that feed off government.

Only the Aryan shall suffice!

Amerika Uber Alles!

Republicans, remember: You asked for this. Given the choice between a dozen solid conservatives and one Clinton-supporting con artist and game-show host, you chose the con artist. You chose him freely. Nobody made you do it. And you got what you asked for.

Elect a game show host, get a game show host. Elect a criminal, get a criminal. Elect a coup plotter, get a coup plotter. And, as a bonus, you also get an administration full of sycophants and henchmen who are themselves criminals and coup plotters and others who are simply comfortable working with criminals and coup- plotters and maybe prefer to do so. No amount of Fox News bluster or National Review turd-polishing is going to change that. Them's the facts, as plain and as visible as the sun.

Americans are not children. Americans are not mentally disabled. Americans are whole and complete human beings, and, as voters, they are morally culpable for the decisions they make"especially when they make that decision twice.

And as Americans look out into the world"or look inward with honest eyes"we may begin to appreciate that the fundamental problem isn't that our country is reviled under the current administration"the problem is that it deserves to be.

The creed of cruelty is nearly universal among Trump loyalists. Of course, they don't put it that way, but ask them and they will tell you the truth in spite of themselves: Trump was elected by people who resent this or that group for its status, its wealth, its influence, its political power, its class condescension, etc., and electing Trump"again"was a way to get back at "them," "the media," "elites," etc. Nobody voted for Trump for policy reasons, because he has no policies, only tantrums. Nobody voted for Trump for philosophical reasons, because he has no philosophy beyond, "I am your retribution." The excitable ladies and gentlemen over at The Daily Wire sell "Leftist Tears" mugs, and there's a reason for that. The tears"of our fellow Americans, wrongheaded though they may be in their politics"are what this is all about. Forget policy"those tears are the deliverable, the only one that really matters.

It is time"well past time"to stop making excuses for Americans: for Americans' cruelty, for Americans' selfishness, for Americans' childish insistence on being led by their resentment and by their lowest instincts.

Trump did not trick Americans into electing him"there never has been, and never could be, any question about what sort of man he is: What else could you make of a thrice-married serial bankrupt borderline illiterate fantasist who before the presidency was best known for having appeared in a reality show franchise, a short string of pornographic films, and however many pro-wrestling programs? What new depths are there to be plunged by Donald Trump, who ended his last term in office with an attempted coup d'tat? From 2017 to 2021, the Trump administration offered a clown-car parade of lying, lawlessness, incompetence, imbecility, corruption, cruelty, kookery, cowardice, and so much whining that you'd think they'd be sick of whining even though they weren't. There was nobody eligible to vote in 2024 who wasn't walking the Earth in the first Trump administration.

This is what they voted for.

Americans Did Vote for This. Donald Trump was elected to hurt people, not to help them, and that's what he's doing.

Americans are not stupid: Americans know damned good and well that whom we're voting for is what we're voting for. We do not have the excuse of ignorance or stupidity.

And Americans are not timid little weaklings pushed into a corner by the big bad world and forced to turn to an erratic would-be caudillo to protect us from ... Canada and Denmark. On any given Monday morning, a comfortable majority of the world's 100 most valuable companies"and 30-odd of the world's 50 most valuable companies"are U.S. firms. (Saudi Aramco sneaks in at No. 6, Taiwan Semiconductor at No. 9, and Tencent at No. 16; Europe doesn't show up until LVMH down at No. 27.) The United States has 4.2 percent of the world's population and 26 percent of the world's economic output. The United States has more military resources than the rest of the top 10 players combined. The annual revenue of the 20 largest U.S.-based companies easily exceeds the GDP of any country except China or the United States itself. Sweden, Ireland, and the United Arab Emirates are rich countries, and none has an economy as large as Walmart's annual revenue. If CVS were a country, it would be a crappy country"but its economy would be larger than Egypt's.

Our economy, already gigantic, has been outperforming supposed peers for decades and currently is growing at three times the rate of the United Kingdom and more than twice as fast as those of Canada, Switzerland, or France. We have more nuclear weapons ready to go than any other country in the world, more people than any country except China and India. We have about 6 percent of the world's land but 30 percent of its wealth, more than all of Europe and Japan combined.

If the United States cannot afford to act like a decent country, then no country can.

And perhaps that nihilism"the conviction that human decency is too expensive"is what is at the heart of Trumpism and its hold over both the Republican Party and a large enough share of the U.S. population to win elections.

Trump was not elected to help people"economic growth during the first Trump administration was exactly the same as it was in the Obama years (please apply the usual caveats about presidents and economic performance) and less than during the Biden, George W. Bush, or Clinton administrations. American farmers were even reduced to taking supplementary federal handouts because Trump's idiotic trade wars wrecked their export markets. That isn't what help looks like.

Trump was elected to hurt people.

It's the Army's 250th birthday that happens to fall on Trumps birthday. "Planning began last year."

How 'bout this?

Cancel the parade, have a conservative and respectful celebration at the Pentagon and use the $92 million to rehire the people at the VA that were terminated.

Thats government waste. Where's DOGE?

#18

My post is referring to 2016. Trump was a mistake from the beginning.

Republicans, remember: You asked for this. Given the choice between a dozen solid conservatives and one Clinton-supporting con artist and game-show host, you chose the con artist. You chose him freely. Nobody made you do it.

#2

Yeah, I know that. I just posted the story, man.

#12

His biggest donors.

Would you rather be in some place that's cloudy and rainy with sad chumps or in Florida with your Saudi donors and winning? #MAGA #Winning

as anti Semitic or racist.

Buchanan is both to rational, thinking people.

Girl you thought he was a man,
But he was a muffin,
He hung around till you found,
That he didn't know nuthin',