The Real Reason Why Trump Wants 1% Interest Rates ASAP

"SG OV is an ETF. You can buy this on really any stock brokerage account out there. And what you'll see is that the price of the stock doesn't really change because it's backed by United States Treasuries, meaning the United States government. The only time the stock price changes is when they pay out this dividend. And this dividend is your interest payment that you get from the United States government. So it's very predictable. It happens every month. And at the time of recording this video, they're paying out around a 4 12% dividend a year, meaning 4 12% interest payment a year just for owning this ETF."

"President Trump is angry with the Federal Reserve Bank for refusing to cut interest rates."

"And now they're paying a lot more interest on those more dollars, which is why the fastest growing expense for the United States government is not the military. It's not healthcare. It's not infrastructure. It is national debt interest payments."

"In 2025, it is estimated that the United States government is going to generate $5.2 trillion in tax revenue. However, we will have a deficit of around $1.9 trillion."

"the pro is obviously number one, this debt cost can go down because then the United States government can refinance their debts and new debts become cheaper because you can borrow that debt at a lower interest rate."

"The value of each dollar sitting in your savings account is dropping. While the value of your salary is also going down, which is why the prices of things go up. This is what inflation is."

"However, over the last number of decades, as this system has played out, what we've seen is that investors have become wealthier because of this."

"And the other benefit of that is that because it is associated with treasuries, meaning lending money to the United States government, the income that you generate from that interest payment is not subject to local and state taxes generally."

"And the other risk is of course if the Federal Reserve Bank starts cutting interest rates, the interest rate that you would get from this ETF would also fall. Beyond that, if you wanted to invest in investments, say stocks or real estate, what we have seen throughout history is that investment values go up. And one of the reasons why is because inflation benefits stocks. Inflation benefits real estate."

"We know that Jerome Powell might get kicked out of the Federal Reserve Bank in 2026. And we know that President Trump probably will want to replace him with somebody who's going to want to cut interest rates very aggressively."

"America's entering a debt death spiral."

"When debts rise relative to incomes on a chronic basis, right now for the US government, it's almost a trillion dollars a year that goes to interest payments."