Watch and listen to U.S. Money Reserve's Patrick Brunson talk about how a second government shut down might be in the works and how engaging in a Trade War is not a smart tactic due to our growing national debt.
Is a Trade War Beginning?- Video Transcription
Good morning and thank you for tuning in to daily market insights. Since our last video, we've seen a lot of stuff taking place in the news and in the headlines. In fact, this entire week has been full of a number of things that are taking place that are real big game changers. We've had things like, uh, the real scary topic of a trade war are starting to make it's fears through Wall Street. On top of that, we're seeing big moves made by Donald Trump as well as China. In addition to that last night, it wasn't in the headlines for some reason, but the government averted another government shutdown. It seems like the more and more times we see the government get closer to hitting a spending, uh, you know, hitting their finish line or whatever you want to call it, it seems like the news just doesn't want to cover it that much anymore.
Like it's not that big of a deal, but it is. In fact, last night they passed a one point $3 trillion budget. One point 3 trillion. That's one point $3 trillion that they're going to add to an almost $22 trillion deficit and nobody seems to care. Debt is a big situation for us right now because if you have the Federal Reserve raising interest rates all at the same time, that means that the government has to be able to pay that large amount of interest on this massive pile of debt. And quite frankly, if we're doing tax cuts at the same time, where's the government going to get this money to pay the interest on the debt? On top of this, we have the big fear of a trade war. This is real big and I don't think people really understand how bad this can really get because last week and earlier this week, we were talking about tariffs and how that could potentially hurt or make manufacturing better. But now that Donald Trump has put in more than $50 billion worth of tariffs against China, they turned to retaliate by adding 3 billion worth of tariffs against us for things like pork and steel.
This is a trade war. This is the beginning of a trade war and in a trade war, countries get to the point where they start to devalue their currencies purposely to make them more desirable as trading partners for other countries around the world. If we get to a point where these governments are purposely manipulating and suppressing their currencies, it's very, very bad for the American people, the u s economy, as well as the global economy. On top of that, when you're doing $50 billion tariffs against a country that holds the majority of our treasuries and our debt, that's a threat. And in my opinion, that's not a very smart move to do. You know, to do something like this against a country that holds the majority of our debt. This is a problem because of all of this we've seen the stock market go through so much volatility this week.
In fact, yesterday, the Dow closed down more than 720 points. This is the beginning folks. We're about to see some things that we have never seen before and it doesn't seem that Donald Trump really cares to see what the repercussions of all of this is going to be. I don't know what's going on up there in the White House or in Capitol Hill, but I feel like we're about to see some things that we've never seen before. And the ultimate- the biggest ramification for all of this is going to be our pocket, our pocketbooks, the value of our currency, the cost of goods and services skyrocketing. These things can get real bad and they can get real bad real quick. So we have to make sure that we're protecting ourselves. We've got to make sure that we understand what the repercussions of all of these moves are going to be for us directly at home.
Yeah, we can see this stuff on our television screens and we see it in the headlines, but do we really know what the repercussions are for us directly as consumers? So ultimately what you need to be able to do is see how things are happening in your state as well. Because at the end of the day you have to be able to protect your money and your retirement and make sure that as we go through this next trade war, which could lead to a really bad recession, you've got to make sure that you're able to protect yourself and be proactive as opposed to being reactive and panicking after the fact. If you want to see what's going on more in your state specifically, you can pick up your copy of the fiscal states of America. This will tell you what's going on in your state with your country's unfunded liabilities and how they can affect your pension or your actual retirement itself. There's a lot of things going on and a lot of different states and I don't think people realize how much in debt these states really are. It's not just the country or the government that's in debt. It's the states as well. So you can click on the link or call the phone number to get your copy. If you have any questions in regards to anything we talked about this week, you can certainly comment in the sections below and we can address those questions. But for now, that's all this week. Thank you for tuning in to daily market insights.