Let’s discuss the economic madness of Trump’s threat, although it’s a ridiculous, idiotic bluff.
Trump’s Rate Cut Rant
Truth Social: Great jobs number just announced, breaking all estimates (except mine!) by double and triple – And you haven’t seen anything yet! EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like “the old days.” Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE! LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged “the President” has an absolute right to do. IT’S BETTER THAN TARIFFS! The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen! President DONALD J. TRUMP
Sep 04, 2026, 7:41 AM
Idiotic Bluff
Mainstream media won’t use the words “idiotic bluff,” but I will.
If Trump actually stopped trading with countries with which we had a deficit, the economy would crash in a day, literally.
Second, the threat is illogical. The trade deficit countries are not the ones that set US interest rate policy. It’s like saying if Susie won’t eat her beets then I will kill Joe’s dog.
Third, the Fed is independent. Trump cannot force the Fed to do anything. And these threats make it more likely that the Fed will not bend to Trump’s wishes.
Former Fed Chair Jerome Powell would have resigned by now were it not for Trump’s lawsuits and threats. Instead, Powell specifically stated he would stay on after his term as Chair ended because of Trump.
That’s one more vote Trump would have if he just shut his mouth.
Countries We Could Not Trade With
- Mexico
- Canada
- Japan
- Taiwain
- Germany
- China
- South Korea
- Vietnam
- Italy
- France
Mexico and Canada are our two largest trading partners. China is third.
We could not trade with most of the world, and the US economy would collapse instantly.
Ten Countries We Could Trade With
| Country / Region | U.S. Trade Balance | Key Drivers & Context |
|---|---|---|
| Netherlands | +$61 Billion (2025) | Serves as the primary European transit hub for American oil, machinery, and agricultural exports. |
| United Kingdom | +$32 Billion (2025) | Strongly driven by American aerospace equipment, financial services, and precious metals. |
| Hong Kong | +$30.3 Billion (2026) | A major destination for high-value American consumer goods, electronics, and agricultural products. |
| United Arab Emirates | +$24 Billion (2025) | Heavily supported by large-scale purchases of American commercial aircraft and defense equipment. |
| Brazil | +$14 Billion (2025) | Powered by Brazilian demand for U.S. refined petroleum products, fertilizers, and heavy machinery. |
| Belgium | +$9 Billion (2025) | Dominated by American pharmaceutical exports, organic chemicals, and medical instruments. |
| Australia | +$8.1 Billion (2025) | High consumer demand for American motor vehicles, high-tech electronic equipment, and optical/medical instruments. |
| Colombia | +$4.35 Billion (2026) | Driven significantly by chemical components, refined oil exports, and various agricultural agreements. |
| Chile | +$4.09 Billion (2026) | Supported firmly by a robust bilateral Free Trade Agreement focusing on heavy machinery and transport equipment. |
| Spain | +$2.75 Billion (2026) | Propelled by substantial Spanish imports of American liquefied natural gas (LNG) and aerospace components. |
Counterproductive Threat
There is no upside to total stupidity. None.
This may push the Fed in the opposite direction, may cause more Republicans to realize what a jackass Trump is, and it certainly won’t do anything good (in terms of anything Trump wants).
The Sunny Side
The Republican Party has to be living in fear now of what idiotic thing Trump might say or do next.
For Democrats looking for the sunny side of the street, that’s a good thing.
Trade Deficit Leaps 24.4 percent
Please note the Trade Deficit Leaps 24.4 percent, Highest on Record Excluding Tariff Distortions
Tariffs did not and will not fix the trade deficit.
Related Posts
September 3, 2026: The Price of Diesel Hit a New Record on Gas Buddy, AAA Tomorrow
Diesel jumped nearly 10 cents today after 5 cents yesterday.
For those keeping score, the AAA price of diesel did hit a new record high of $5.8500 today, eclipsing the $5.8159 price on July 19, 2022 under Biden.
Congratulations (of sorts) to Trump.
September 4, 2026: Unexpectedly Strong Jobs Report, Payrolls Rise by 162,000 in August
Jobs Rebounded in August, Unemployment Rate Steady at 4.1 Percent
Addendum – Funniest Comment of the Day
Article posted the permission from Mish Shedlock
