Economists Uncut

Trump’s Bold Interest Rate Demand? (Uncut) 01-25-2025

Trump’s Bold Interest Rate Demand?: Why It’s Just A “Trap” to Usher in the New System

Hi folks, Daniela Cambona here, and before we get to our next segment, just a quick reminder that you still have time to download the free Dani report. What is it? Well, I’ve been doing this career I love for close to 20 years and have had the honor and privilege of interviewing some of the brightest minds in the field. And in this free report, I share some of the best takeaways and insights I personally have learned.

 

Feel free to download it. There’s a link below or scan this QR code, nice and simple, and get that free report. President Trump demanding that interest rates must drop immediately.

 

Here to talk about this and so much more. Welcome back to the program, Gregory Manorino. Gregory, I’m not going to say happy New Year because it’s January something.

 

It’s too late to say that, but how are you? Me? I’m just dandy. I’m always dandy and I’m happy to be here with you. Thanks for having me.

 

I’m so happy to have you back. No shortage of news to digest. Let’s start with this one.

 

Demanding interest rates drop immediately. Just because he demands it, is he going to get it? Here’s the situation with that. I’ve been calling this for many, many, many months.

 

I’ve been explaining to people that we’re going to see this. This is the death, the end here for the US dollar. It’s decimation.

 

It’s currency purchasing power loss on a grand scale. And this is exactly what the Federal Reserve was hoping to hear out of his mouth, honestly. How do central banks inflate here by devaluing the currency? And this is exactly what they want.

 

The Fed is already in full lower rates mode here. But people don’t understand. Let me just say this to your audience who doesn’t understand these concepts because they’re not that easy, honestly.

 

In economics and finance, there literally is only two fundamental truths, just two. And this is what they are. Number one, to have a strong economy, you need a strong currency.

 

To have a strong currency, this is number two, you need a corresponding rate of interest high enough to support the currency purchasing power. So when you hear, when people hear of a central bank cutting rates, or now a president demanding that rates go lower here, it means you lose. We all lose because the currency purchasing power gets decimated.

 

I mean, it’s an amazing thing. This is why, this is an economic wrecking machine. This is why the world, not just here in the United States, is really in the economic spot that it’s in.

 

It’s central banks destroying the purchasing power of the currency via the mechanism of artificially suppressed rates. No one’s told this stuff, but it’s really the truth. So what does this mean? Rates go lower, the purchasing power loses its ability to acquire goods and services here.

 

And again, it makes our lives harder. The standard of living will be suppressed here. We’re being thrust into a new system here.

 

The crypto president, the Bitcoin president here, honestly, it’s crazy. And being pulled further and further away from any kind of a constitutional money system. But this is, you know, look, people like myself and who are into the crypto space, we’re not going to lie.

 

We made a lot of money here. And a lot of it’s thankful to Trump here, who’s been pushing Bitcoin and stuff for quite a while now. He used to be completely against it, but now he’s for it.

 

Okay, but this isn’t really the issue. The issue is that we are now, unfortunately, in my view, seeing a hideous thing happen. A deregulation of the banks, deregulation of cryptocurrencies, a merging of the two and being thrust into a new system in the dollar.

 

Well, here’s what you were just mentioning here. You can’t read this. President Trump says, so demand is just very strong.

 

This has to happen. I’ve been explaining to people that this is how it would play out. The two things we were going to see with the Trump presidency was a merging into the new system or morphing via making cryptocurrencies mainstream.

 

And number two, to help the Federal Reserve kill the dollar, to destroy the purchasing power. And this is exactly what’s happening. Not that I’m shocked, but to see it happening so early in his presidency is a little shocking to me because it tells me that we’re being bridged faster into the new system.

 

I find these comments interesting. As we know, he’s had a contentious relationship with Powell, whom he’s appointed. He frequently criticized Powell, calling policymakers boneheads, comparing Powell to a golfer who can’t putt.

 

These comments now come, he made them at the World Economic Forum ahead of the next Fed meeting. But you’re saying the Fed is welcoming this. Do you really think- Oh, of course.

 

Well, the Fed’s cutting… Every central bank, that’s what they’re doing. So you think Powell wants to hear this? Of course he does. What happened during Trump’s last tenure when the Fed wasn’t lowering rates fast? Trump had called them boneheads.

 

Why? Because the Fed wasn’t cutting rates to zero and even possibly negative, which would be an absolute… Let’s just light our currency on fire here. The Federal Reserve has now been in the process of lowering rates. When a central bank lowers rates, it allows them to inflate how? A central bank just can’t wave a magic wand and just order rates to drop.

 

They have to create the currency out of nothing, huge amounts, and get into the debt market and buy the debt. That suppresses rates. Now, when a president here says, hey, you know what? I’m going to demand that we lower rates, that gives the Fed the green light to create massive currency out of thin air and buy more debt.

 

But that’s not the setup. Let me explain to people what’s really going to happen here. And this is what I’ve been telling people.

 

So this call now from Trump to, you know, I’m going to demand that the Federal Reserve lower rates, the Fed’s going to push back. This is a game. The pushback from the Federal Reserve is going to be, hold on a second.

 

We will do what we want when it’s appropriate. Behind the scenes, this is what the Fed has been planning for a very long time. Every central bank is the same boat.

 

They all operate the same way. And this allows them to inflate. Central banks get to issue more of their product to the world.

 

It’s an incredible thing that we’re witnessing here, but most people have no idea how it works. So there’s going to be this pushback, kind of like Trump is fighting the Fed. And people are going to fall into it because a lot of people that follow Trump think he can do no wrong, no matter what happens.

 

Now, with this, people are going to say, hold on a minute, the Fed isn’t lowering rates fast enough. What does this mean? Look, when the Fed lowers rates and the currency loses purchasing power, that means, again, it makes our lives harder. You’ve got to work longer and harder to earn more currency to buy the same things that you did before.

 

And again, understanding the mechanism, it’s a terrible thing to see. We don’t need lower rates. The fact of the matter is we need much higher rates.

 

What lower rates is going to do is keep that doorway open for cash to make its way into the stock market, inflating a larger bubble by inflating the debt. The mechanism here is so, honestly, it’s dastardly. I don’t know the way to put it.

 

And you’ve got puppets around the world, public leaders working with their central banks and trying to tell people this is good for them. We do not need lower rates. We need higher rates.

 

Why? Because that would improve the purchasing power of the currency. And that would build the economy from the bottom up, not from the top down. When you hear of a president or a central bank wanting weaker, lower rates here, all it does is it creates a mechanism called the Cantillon effect.

 

Basically, the creation of easy, more money, easy money here allows the one in two percent who are closer to the money to profit from it first before the trickle down through the economy. And it gets to you and I when the currency has been massively devalued. Again, this is stuff that is so above most people’s ability to understand.

 

But the concept is very simple, breaking it down. It just means we are going to lose purchasing power. That’s what it comes down to in allowing central banks to fulfill their goal to own it all.

 

The best friend of any central bank is a president or a leader calling for lower rates. That is a fact. And I’ve been telling people this for the longest time.

 

And today, this is breaking news. You’re the first person to get this out here. It’s pretty incredible.

 

Explain this then, because. Obviously, Trump wants to leave a legacy that he’s not creating economic pain. He wants people rejoicing, right? He doesn’t rejoicing anyway.

 

Good. No, no. Yeah.

 

But but but so this is my interpretation of things here. But I’m thinking he’s going to want to create or continue this mirage that everything’s OK in the market, that people aren’t feeling pain, right? Well, yeah. Well, this is going to boost the market.

 

I mean, when a central bank, when a central bank, any central banks lowers rates here, it literally opens up the doorway for cash to make its way into the stock market, creating an illusion here. You know, rah, rah, rah, we’re rich. Look at the stock market.

 

Yeah. You’re just propping up the stock market to keep this illusion going. At the expense of the economy.

 

Because you can’t have your cake and eat it too. Again, we need a stronger currency to help we, the people, gain purchasing power. But lowering rates here is exactly what the market wants to see.

 

We’ll create a risk on environment, meaning pushing cash into the stock market. The one percenters own 92 percent of the stock market, not you and I. OK, I think most people have investments in the stock market. OK, but it’s the one percenters who own 92 percent of it.

 

They’re the ones who are going to benefit here as well as having access to the easy money that it’s going to take to pump in here. Look, what we’re seeing here is exactly what the market people, Wall Street and the banks want here. The one and two percenters want it.

 

What Trump’s legacy is going to be, look, they’re going to use every excuse in the book to blame that it’s whatever it might be. But the fact of the matter is Trump was put in here for two reasons. Again, to issue in the new currency system, which is the first abridging the system, and then two, to lower rates or help the Fed lower rates.

 

That’s exactly where we’re going here. We’re being destroyed. And it’s not just here.

 

This is not a phenomenon here just in the United States. This is worldwide. We’re seeing an economy contract around the world.

 

At the same time, global debt is ballooning. Who right now are the number one issuers and buyers of debt? Well, it’s central banks. And they’re working with their respective leaders to bring about this new system.

 

As the system we’re in is being taken apart piece by piece. So people could look, they need to do simple. Take advantage of this.

 

The easiest thing to do here is to understand that this is going to create extreme distortions in the price action of assets across the board. Artificially suppressed rates here, currency devaluation, should be a boost for the stock market. It should also, again, understanding that mechanism, you’re going to see other assets become suppressed.

 

In other words, let’s say hard assets, gold, physical silver, these things are going to be based upon the swelling debt and the currency devaluation as cash seeks yield in the stock market, gold, silver, commodities across the board, their price action is going to become suppressed. With regard to cryptocurrencies, I believe they’re going much higher, although we’re going to see a lot of volatility as well. But what this comes down to, again, is just understanding how cash moves through the markets based on monetary policy.

 

Monetary policy is set by central banks. And in this case, with a leader here working with the Fed to bring about what they want, which is, of course, lower rates. In his message, he wasn’t just speaking lower rates in the United States.

 

He was urging central banks around the world to lower rates. Well, I don’t know. Well, central banks around the world, they’re going to do it.

 

Again, I don’t know what their respective leaders are going to do. But here in the United States, with the U.S. dollar, still the world reserve currency. But this may change with this whole thing with the BRICS nations and stuff.

 

We’re going to see how that plays out. But having the world reserve currency is a very positive thing for U.S. citizens here, being that the dollar is the world reserve. What it does is a mechanism that allows us to export inflation to the rest of the world.

 

Even though we’re seeing the effects of inflation now because of vast money creation out of nothing with the last three presidents colluding with the Federal Reserve to inflate the system, there’s a lag effect. I mean, people expect to see inflation immediately. It doesn’t happen like that.

 

There’s a lag effect as cash is created out of nothing and then makes its way through the economy. And then you get this effect of inflation. Now, we haven’t seen anything yet.

 

Now, that’s an issue, too. More money creation and currency devaluation. We’re not going to see the brunt of it hit us for a while.

 

It could take many months. It took years, actually, with Obama and then Trump and then Biden inflating the debt. And now it’s finally making its way through the economy to us all here in the United States.

 

But this is, again, a worldwide phenomenon. And it wouldn’t be much worse here if we didn’t have the world reserve currency, which is a mechanism that allows us to export a lot of our inflation to the rest of the world. Gregory, for those folks new to you, maybe just tuning in, what’s the end game here? I mean, like you said, you mentioned there’s this new crypto task force, right? So with the devaluation of the dollar coupled with a presidency that is pro-crypto, you know, there’s talk of a Bitcoin reserve.

 

What do all these elements add up to? It adds up to that we all got to keep ourselves on the right side of this for as far as we can possibly see. People have to get away from not just Federal Reserve notes here, but central bank issued notes around the world, which are in a downward spiral. It’s irrecoverable, and it’s going to accelerate here.

 

I think people need to be allocating their wealth in real things, again, going back to hard assets. And yes, absolutely, man, people need to hold. And I understand the hatred and the dislike with regard to cryptocurrencies from many, many people for the right reasons.

 

They’re not wrong. It’s a volatile asset class. It’s new.

 

People don’t really understand it. But in terms of, let’s say, Bitcoin right now, if you look at the price of a house, well, the price of that house has gone way down. In terms of dollars, that house has become astronomical.

 

So this is part of the mechanism that we’re going to see to get people to want to hold cryptocurrencies as we’re bridged into the new system, which is going to lead to full tokenization. That’s really what the bottom line is, a method of control, cashless system, of course. But the bottom line is, the world economy is being pressured by the mechanism of, again, artificially suppressed rates and currency devaluation.

 

This is an economic wrecking machine. And that’s why we, not just the United States, but I’m trying to wake people up around the world, is that’s what’s happening. That’s why we’re in the situation where they can point their finger at whatever they want to.

 

It all comes down to monetary policy. And who runs monetary policy? Who runs the economy? Who runs the financial system in the markets? Well, it certainly isn’t presidents, kings, queens, dictators, or monarchs. It’s central bankers.

 

And they are on a mission here to destroy us all, to create some new yet to be defined paradigm. And unfortunately, people are being destroyed. They’re being distracted and deceived.

 

They always are. You’re talking a reset. It’s a reset.

 

It’s a reset to a new system. Absolutely. But the sad thing is, and I hope that more people pay attention to shows like yours, is understanding where we’re going.

 

And they need to take action, meaning, okay, look, man, first of all, with regard to the banking system, I realize what’s on in the deregulation here. They’re talking about eliminating regulations across the board with regard to the banking system. Now, the banking system itself operates in a vacuum.

 

The whole financial system is insolvent. And we have a debt-based system that means it must find ways to pull more debt into the system to function. Without that, the system just implodes on itself.

 

And part of the mechanism of lowering rates allows the system to function a little bit longer by pulling more debt into the system to here by more debt and low rates. So, okay, but the bottom line is people need seriously to, especially in light of what just happened here, and we knew this was coming. And I think, let me just say this, we’re going to get at least four rate cuts this year.

 

And these rate cuts could be dramatic from the Federal Reserve, not just 25 basis point little token cuts, especially in light of this, I wouldn’t be surprised to receive 50 basis point cuts. And I say at least, there could be more. And the more that that happens, the more the currency is going to lose purchasing power.

 

And other central banks, to what you said just a little while ago, are going to follow suit because this is the way they operate. They operate together as a mechanism to destroy the economy. We’re not fixing anything here.

 

If anybody has any delusions of grandeur that just because the figurehead behind the Resolute Desk was changed that the economy is going to change and we’re going to start shrinking debts and deficits, this is going to get much, much worse moving forward. You can’t stop it. We’ve hit a tipping point, a point which I would call maximum saturation.

 

I’ve been telling people this for years, has already been achieved. And now we’re seeing the fallout of that. So people need to take action here.

 

They can’t just do nothing. We’re obviously going to be paying close attention to that Fed meeting. And I just, you mentioned gold.

 

I looked at gold’s reaction right now, kind of muted, up about close to three bucks here on the news. But we’ll continue to track gold’s movement in regard to this. Last point, thoughts on tariffs.

 

You say Trump’s backtracked. Well, he hasn’t backtracked on tariffs, but he’s kind of just pushed the can down the line. We have a little more of a deadline here on them.

 

And you say it’s a gift to the market, no doubt. Oh, yeah. Well, of course, because we’ll think about it.

 

First it was 100% across the board, tariffs. Then it was 50%. Then it was 25%.

 

Now it’s 10%. And the market doesn’t want this. Tariffs, first of all, is going to pressure the people even more so.

 

How do tariffs actually work? Well, it’s not really paid by the nation. It’s paid by the importers and exporters. And those increased prices are passed on to the consumer here.

 

Now, Biden’s no saint here. I think we can all agree on that. And he’s been implementing, I mean, people should do their own research on this.

 

Most of the tariffs that Trump had during the election were re-implemented under the table via the Biden administration. And it’s not helping us here. And with regard to Wall Street, of course, they don’t want to see more of that stuff.

 

We would love to see less tariffs. It’s not going to help the economy in any way, shape, or form. Even if we get 10%, which is like a slap on the hand, targeted 10% here, all right, people will be able to cope with it.

 

If it were higher, especially in the face right now that we’re going to see more dramatic currency devaluation, it would accelerate the pressure on the consumer. And the consumer, you have to understand, they can’t allow them to feel like they’re getting hit by a hurricane or a freight train. It must be done slowly, deliberately, and dramatically.

 

And they’re creating dependency on the system. And that mechanism, again, it got to be done incrementally and slowly, and have people, again, we’re watching an elimination here of the middle class around the world, not just here in the United States. And the creation of neofeudalism, a new two-tier society yet to be defined, but that’s really what we’re doing.

 

But they can’t do it all at once. It’s got to be a slow, methodical, kind of a boiling frog thing. And that’s what we’re seeing here.

 

And people don’t understand why it is. They’ve been lied to and distracted and deceived as to the true reasons why we’re seeing inflation right now. Inflation is what? Currency devaluation.

 

People don’t even understand that. I talk to people every day, as you do too. You’re pulling straight.

 

And they talk about inflation. And I’ll say, well, do you really understand what inflation is? And this just happened recently with one of my neighbors. Well, prices are rising.

 

And then my follow-up is, prices are rising, but why is that? Has that resource become scarce? Then they think, and I go, well, it’s because the dollar in this case is losing purchasing power. And then they go, wow, I never thought of it like that. People don’t even understand the basics, at the most basic level, of how the system works.

 

And me and shows like yours, we’re trying to make people understand that. And then it’s not just about, look, here’s the issue, is what are you going to do about it? And that’s really where I come in as a market guy who understands the dynamics here. All I look at is dynamics in the market, where cash is likely to flow because of whatever policy may be instituted at that time or monetary policy by the central banks.

 

And it’s too easy. This call here saying that Trump would demand lower rates was too simple to make. I’ve been telling people this for many, many months, that’s what we’re going to see and how we’re going to see this play out.

 

This dynamic between the Fed and Trump, they’re going to set this up. It’s interesting to keep people not understanding what’s actually going on here. And this is what central banks want.

 

But anyway, look, man, so I want people to realize that this is not going to stop. The currency devaluation is not going to stop. The economy cratering around the world on itself is not going to stop.

 

The elimination of the middle class is not going to stop. And unfortunately, they got to take action about it. Or fortunately, depending on how you want to look at it.

 

I think this is a very opportune time to take advantage of, let’s say, assets that are incredibly suppressed and will continue to be gold, as you just mentioned here. And I’ve been telling people for months that if this plays out the way we predicted it would, you would see pressure on gold and silver. And you’re going to see more, I believe, despite the fact that we’re going to see more debt creation and artificially suppressed rates.

 

Because again, why? There’s another fundamental truth here. I guess the third fundamental truth in economics and finance is cash just seeks yield. Wherever the cash is moving into at that moment, that’s where cash is going to follow along.

 

And that’s why you’re seeing this ballooning as of late with cryptocurrencies. And with the market, the stock market, this presents another dynamic here. Don’t take my word for this.

 

Larry Fink, our lovely friend at BlackRock, is saying people watch the debt market, which I’ve been telling people this for, well, since day one. The debt market is the driver of everything. And if we can just understand the dynamics in play with artificially suppressed rates, it tells us a lot where cash is likely to move.

 

Gregory Mannarino, no shortage of breaking news. Thank you for your reaction to it. Come back soon.

 

Anytime. Anytime. Thank you.

 

And thanks for watching. We’ll have more great content. Sign up at danielakombonen.com and subscribe to our YouTube channel to stay on top of it all.

 

That’s it for me. Thanks for watching.

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