Managing National Debt and Bond Markets

We know you've been very involved with Argentina, with, uh, with Japan.

With everything that's going on, how is this gonna play into your management of

the

nation's debt, the deficit and really managing- uh,

helping manage the bond

market?

Well, Steve, fir- first of all, you know,

I... People say to me, "Well gosh," you know,

"like the stock market's going up on

bad news." And I said, "It's not bad news, it's, the news

coverage is bad" And, you know, I've s- I've said to you, I've said to your

viewers before- Before I came to office I

was a little queasy with

the term fake news. Now I think it's not strong enough.

Uh, 'cause I look at this financial news, if, if you, if you go underneath the

hood, the, you know, aw- away from, you know, this

anti-American Financial Times which is just, you know...

They, they are anti-American, they are anti-business, they are anti

Western values. You know, th- they're a features newspaper now.

Uh, you know, just like The Wall Street Journal.

Wall Street Journal-

Yeah

…the, uh, isn't a business paper. The, the only thing I, I read on them

is the book reviews. Um,

so but- You, you read the story on the Norwegian

Sovereign Fund and it, it says two things.

One, this is a global decision. It just happens that the

American, that the US bond market i- is the, the

deepest. It also says that they are looking at buying other

paper, you know, whether it's

slightly higher yielding mortgage papers.

So they're just looking to upgrade their yield with other American

assets. I-- Look, they, uh, they, they wanna buy Fannie, Freddie,

Jenny May paper. Uh, I, I am the biggest advocate for

that. Uh, you know jus- just like

these other things. There was this, the hysterical story

that the Dutch are moving, like some of their gold to

London and, you know, they're moving it from New York and

that was

somehow

linked to

President Trump's

, the trade action. Well guess what-

Ge- geo- geo- geopolitical, geopolitical uncertainty I think they

called

it . Right? To take their gold-

Well, yeah, okay

But, uh, that's fake news

Y- Yeah. But, but, you know, again, the buried lead Steve was they moved

their goal from Ottawa too.

Like that, that was in about paragraph 48.

So,-

Um, but look, the,

the, the U- US bond market is the best performing in the world since

president Trump came in. That the Iran

conflict will end interest rates

and the spike in headline inflation will come

down. And what's important Steve, is that because of what the

president has done on the dereg front

we can have noninflationary growth.

And indeed we are seeing that the

core inflation which is without the very volatile en-

energy components is actually flat to coming down.

We had the biggest decrease in pharmaceutical prices

ever, three and a half percent. That's, that's unheard of.

And um, you know, in terms of food

affordability, uh, we call it groceries.

The statistical agencies call it food at home.

It, it's up 2.3% this year, uh, which is

very close to the Fed's target level