Name: One of the Biggest Financial Traps in History Is Now Here (And What It Means for You
Uploaded: 2026-01-15T18:15:57.000Z
Duration: 15 min 31 s
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The US government spent $276 billion in interest payments just in the final three months of 2025.

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This year, that number will exponentially grow to $1.2 trillion.

And this is the biggest threat to Trump's presidency.

And that's why since day one, Trump was attacking the Chairman of the Fed to lower down interest rates.

And now he took that to a completely different level.

The Department of Justice started an investigation into Jay Paul, which means that most likely there is a probability that he will resign.

Now, his term in office is going to expire in the spring of this year, but

he will continue and remain at the board of the chair.

And since he is the previous head of the chair, he will have massive influence over the Fed's decisions about future interest rates.

And that's why by getting rid of Jay Paul, Trump can ensure that he will have lower interest rates and the Fed will start buying massively US Treasuries, and

that will have massive implication on your money, on your paycheck, and on the entire economy.

So here in this video, let's try to figure out how the Fed is posing a great danger to Trump's presidency.

How destroying Fed's independence is going to reset the entire global economy, and

most importantly, how that is going to impact you.

So if you're ready, give this video a thumbs up and let's get right into it.

The biggest problem that Trump is facing in his presidency are interest payments.

Last year, total interest payments were about $1 trillion in entire 2025.

If this trajectory continues, by 2028, it will be about $1.8 trillion.

Not a single president in the past has spent so much money on interest payments.

And that literally destroys his entire presidency, because he can't do anything else when he is spending so much money on interest payments.

That money could be spent on building the infrastructure, improving the military, or simply making the country better, but

instead, that money is simply being spent on paying the creditors.

Last year, Donald Trump has passed the big beautiful bill to grow the debt ceiling to $41 trillion, which is insane.

The current debt is about $38.7 trillion, which means that throughout 2026, the US government will hit the debt ceiling and Trump has to pass another legislation to grow the debt ceiling by at least another $5 trillion.

Probably by 2028, the total debt will cross $45 trillion.

That's why he needs to decrease the interest rates to make sure that it interest payments would go to their bare minimum.

And Trump made it clear that he wants to see interest rates at 1%.

And that means that at $45 trillion, 1% interest payments will bring the total interest payments to $450 billion.

Because most of that debt will be purchased by the Federal Reserve if the Fed will start massive quantitative easing.

The Federal Reserve on one side, lowers interest rates, and

now the US Government has to refinance that debt.

So it starts massively selling the US Treasuries.

Of course, nobody is going to buy so much Treasuries.

There isn't so much demand for US Treasuries in the market right now.

But the Fed can do that by expanding its balance sheet.

So the Fed buys all of these Treasuries, bringing down the overall interest rates for the government and and expands its balance sheet.

It might not instantly lead to high inflation like it's supposed to, but usually it takes time.

So the systematic inflation over time is going to continue rising.

And here's why the Fed is so against Trump's plan.

If you look at the entire global economy, you'll see that all of it stands on the shoulders of the US Dollar and the entire world, starting from foreign countries to investors in the US and across the globe, from financial funds such as pension funds, ETFs, are all investing in the US debt.

And the reason all of them are willing to buy so much US Debt and so much US Treasuries is because there is a trust that the Federal Reserve is independent and will ensure the stability of the US Dollar.

The Federal Reserve was not created to grow the US Economy.

The Fed was created to sustain the value of the US Dollar.

It is the job of the government to grow the economy, and

it's the job of the Federal Reserve to ensure the stability of the dollar.

And that independence is what allows other investors, even the adversaries of the United States, to trust the US Dollar because they know that this entity is independent.

The moment the Federal Reserve loses its independence and it's no longer targeting an inflation rate of 2% and is lowering interest rates to boost the US economy and not serve the interest or the stability of the US Dollar, all of these investors will not see any point to continue investing in the U.S.

And that doesn't simply mean foreign investors such as China, Japan, the European Union, but

Most of that debt is being held by the US financial institutions such as ETFs, the US banks, such as Citi Chase, JP Morgan, you name it.

And historically, The Federal Reserve has proved itself to be very independent.

Going back historically, you can see that back in 1970s or 80s when inflation crossed about 13.5%, what do you think the Federal Reserve did?

It instantly hiked interest rates to almost 20%.

And interest rates were insanely high throughout that entire period to bring inflation down.

And the Fed has done a successful job to achieve that target.

Back in 1990s, when inflation was at about more than 2.5% and the US economy was in a bubble, the Federal Reserve intervened and increased interest rates to more than 5%.

The same thing happened in early 2000s, right before the 2008 financial crisis.

And in 2022, investors are willing to accept lower real returns.

And even if inflation is high, assuming that the Federal Reserve is independent, and

in the long run, it will bring down inflation to 2%.

But right now, we are breaking the system that has worked for the United States since the creation of the Federal Reserve.

If you look at the inflation the last five years, there hasn't been a single year where inflation was at about 2% or even below 2.5%.

In 2021, inflation for the first time in a long time has crossed 4.7%.

If you are an investor in the US debt, will you buy the US Treasuries for 3.5% knowing that inflation is 4.7%?

When you are buying US Treasuries that pays you lower than 4.7%.

In 2022, it got entirely out of control and the Fed raised interest rates 20 to 5.5%.

Since then, inflation has come down to 2.7% by the end of 2027.

And if we start to lower interest rates right now and expand the balance sheet when we haven't hit the 2% inflation target, do you think investors are going to like that?

What message does that send to investors across the globe?

So if you are an investor in the US debt and you are making 4% in your investment while inflation is 3%, your real returns are 1%.

But if we bring down US treasuries to 3% artificially and inflation is also 3%, do you think you are actually going to make any money or whatsoever?

Yes, on paper you made some money, but your real returns were 0%.

If investors start to believe that the real new inflation in the US is going to be around 3%, they will start demanding a rate that is higher than 3% for their investments to make sense.

Especially when we are living in a moment where the biggest adversary and the second world's largest economy has an inflation that is closer to 0%.

The highest inflation that was in China over the last 10 years was, was probably back in 2019 when it reached 3%.

Since then, especially since 2021, there hasn't been much inflation.

And if you're an investor, investing in the Chinese debt right now seems like a really good idea.

Even if you are making, let's say 3% on your investment and inflation is 0%, you made 3 clean percentage points.

If you are buying the US debt, the US treasuries, and

inflation in the US is 3%, your real return is 0%.

Suddenly investing in Chinese debt becomes much more appealing, becomes much more attractive.

And that's not something that the United States can afford.

And that's why it's extremely important to keep inflation under control and ensure that the Federal Reserve is independent and the government is not replacing the Chairman of the Fed just because they don't like the interest rates.

So when independence is lost, when investors start to doubt the US Treasuries and the US Inflation rate, what do you think is going to happen to all of this debt that foreign countries have accumulated?

China, which is an adversary of the United States and certainly not an ally, holds $850 billion.

All of these countries are investing in the US debt not because they love the United States or anybody does anything like that, but

rather everybody is driven by self interest.

They want to profit out of their investments just like you want to profit out of your investments.

So when they start selling massively the US Treasuries, since the Fed is losing its independence, who do you think is going to buy that?

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One of the Biggest Financial Traps in History Is Now Here (And What It Means for You

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