The Tariffs Just Broke the System (And It's All On Purpose)

so the tariffs just got worse Tariffs on China could get as high as 245% This means that a dollar product in the US will now cost $345 in China Tariffs against China went from 10% to 20 then to 54 then 104 then 145 and now we're looking at putting a 245% tariff against China So it feels like we're just a couple steps away from saying infinite tariffs Let's just stop trading And China's response is calling the bluff saying the tariffs are meaningless at this point and it just makes no difference [Music] But it does make a difference to businesses because last year the United States imported over $438 billion worth of stuff from China And this new 245% tariff would increase the price of all this stuff by a factor of about three And when stuff is three times more expensive investors panic and the markets start to get scared and they anticipate inflation And that's why the stock market is going sideways and interest rates are going up in the bond market But the craziest development that's happening right now is that President Trump wants to fire the chairman of the Federal Reserve Jerome Powell That would have huge implications on the market and the economy That's why the stock market is terrified and China is trying to isolate the United States by pulling their money out of private equity And that's why there's even rumors of the United States potentially issuing something called the super bond A bond with a 100year payback period So what started as a trade war is now something a lot bigger It's turning into an economic war a tech war bond market panic and maybe even a central bank crisis So if you're feeling like everything is breaking at the same time you're not crazy I want to help explain the next phase of this story and what's actually happening and why it's happening and what I'm personally doing with my money while the system resets itself in real time So with that said let's get into it Hi my name is Andre Jick Hope you're doing well Come for the finance and stay for the magic Now there's a lot of confusion about what's actually happening to the economy and why it's happening And the truth is no one knows But I want to start this video by framing it through the context of a very cool magic trick Now in magic there's this concept called equivocay or equivoc which means magician's choice And let me show you what it looks like I want to go ahead and pick a card Now it doesn't matter what card you pick but let's say you picked this one which is the jack of hearts right here Now we're going to put the jack on top and we're going to lose him into the middle of the deck And with a snap of my fingers with a little bit of magic we're going to take your card and turn it into the only blue card in the deck And that only blue card was your card which was the Jack of Hearts Now I'm going to do this trick one more time So pay special close attention I'm going to put this one off to the side and I want you to tell me when to stop Stop right here Go ahead and memorize that card We're going to lose it in the middle again And just like that your card turns into the only blue card in the deck except the only blue card was here the whole time which was your card Thank you Thank you Please no autographs But you can smash the like button and subscribe So this trick uses a concept called equivoke magician's choice right it's where I give you an option that feels like a free choice but in reality it's not a free choice at all because I made you pick a specific card for at least one half of that trick But here's the really cool part Even if I got the trick wrong I can also use what's called multiple outs Meaning because you don't know where the trick is supposed to go I can have a lot of different outcomes that all look equally amazing So even if I get something wrong I'll know but you won't And that's because I could say "Well instead of the card being blue your card is now in my pocket. " Or now the card is a different color and it's over there But what I just showed you was the best outcome for that trick And when I look around the world to see what's happening sometimes it seems to me like the US government is using similar principles and methods to accomplish what they want And here's how There's one main objective outcome Meaning there's one main thing we want to have happen And people debate what that is But at least for me I think the US really wants to have lower interest rates so the US can refinance the $9 trillion worth of national debt that's coming due this year And on a personal level lower interest rates so we can all start borrowing money to invest and get rich again And if you're trying to build wealth in this kind of market where rates are high and volatility is all over the place and everyone's predicting something different you need a platform that gives you options And that's why I use today's sponsor Public A platform built for serious investors who want to take control of their portfolio You can build a multi-asset portfolio of stocks bonds options crypto and more You can also earn an industryleading 4. 1% APY on your cash with no fees or minimums Their bond account is offering a 7% or higher yield by letting you invest in a diversified portfolio of corporate bonds with just a $1,000 minimum to get started Now normally you'd need $10,000 or more for something like this but Public makes it more accessible to start investing in bonds And one of my favorite features about Public is their AI tool called Alpha It breaks down complex stock data into simple information so you're not just seeing what's happening in the market but why it's happening So if you're looking to grow your money smarter check out Public at.

com/andre It takes just a few minutes to sign up And if you transfer your portfolio you could earn up to $10,000 Thanks again to Public for supporting this part of the video And now let's get back to it So the number one priority right now is to lower interest rates But economies are complicated because we're talking about geopolitics and macroeconomics So it's not as simple as a magic trick So the country has to have multiple outcomes which have to look equally successful And here's a couple of them that are in the works right now The US is using tariffs to pressure other countries to drop their tariffs create fair trade and make more money That's one outcome that's better than what it was before Another outcome is potentially bringing back high-skilled manufacturing jobs so the US can make its own stuff again and not have to rely on a competing country to make it for them National security for long-term prosperity That's another outcome better than what it was before Or the US could also be using tariffs as pressure points against other countries to cut China off so they can't get around the tariffs and the US can close the trade deficit Cool That's another outcome And if all else fails we can point to the collapsing economy and say "Hey look inflation's slowed down to below 2% and the price of eggs and gas have fallen so everything is more affordable now Consumers win. " That's another potential outcome There's a lot of outcomes to this magic trick but I don't think we've seen the main outcome yet What we have seen is something that looks like this [Applause] [Music] That's the falling bond market and interest rates going up which is the opposite effect of what we want to have happen So as an audience we're just watching this magic trick play out and we're like amateur But I don't think we've seen the outcome yet And it can still be an amazing magic trick It's just not necessarily going the way we wanted it to right away And the main effect is I think to lower interest rates And here's why Because if you really zoom out and look at everything that's happening right now the tariffs the bond market chaos the Fed drama and even the idea or the rumor of the super bond it all points back to one thing The US needing to refinance its debt or at least some of it $9 trillion is coming due this year And if interest rates stay this high that refinancing becomes a nightmare Just like most people can't afford to refinance a mortgage at 8% The US can't afford to roll over its national debt without triggering even more deficits more borrowing and eventually more inflation And in the long term most economists say that it's an unsustainable path In the long run the US is on an unsustainable fiscal path The US federal government is on an unsustainable fiscal path And that just means that the debt is growing faster than the economy So the question is how do we fix that you can do whatever you can to get interest rates down You pressure the Fed You scare the markets and you maybe even reshape the story around inflation and say "Hey it's already coming down now It's time to cut. " But when the Fed doesn't cut as fast as it needs to that's where the magic trick takes another turn and it has to adapt And President Trump is trying to replace Jerome Pal at this point the man who kind of controls the interest rate On April 17th President Trump said "Termination of Jerome Powell cannot come fast enough.

" And the last time a Fed chair was fired was never It's never happened in history And that's because legally the president can't just fire the Fed chair because he doesn't like the interest rate He's trying to bring back 0% rates And Jerome Powell stands in the way of that goal And the reason he's not lowering rates today is because Jerome Powell believes the economy is in a good place and there's no reason to Despite heightened uncertainty and downside risks the US economy is still in a solid position Now technically Drm Pal's term runs until 2026 and the law says he can only be removed for cause which means misconduct but not policy disagreements But that's still not stopping President Trump from looking into workarounds like reassigning Jerome Pal to a different role or appointing a shadowfed chair which is someone who's not officially in charge but publicly acts like they are and that someone might be someone like Scott Bessant Do you believe you have the power to remove him and are you trying to do that i don't think he's doing the job He's uh too late Always too late A little slow and I'm not happy with him Uh I let him know it and uh oh if I want him out he'll be out of there real fast Believe me that's one of the main strategies because the faster the Fed can cut the rate the faster the US can refinance its debt And if Jerome Pal won't do it President Trump will try to replace him with someone who will And that brings us to the latest trick up the government's sleeve which are rumors of the super bond Now a super bond is just a bond but with a 100-year maturity That means if the government sells one of these this year in 2025 they wouldn't have to pay it back until the year 2125 So it's basically the financial equivalent of saying "Don't worry about it Future generations will handle it for us.