TRUMP S FIRING OF LISA COOK CAUSES INVESTORS TO FLEE US BONDS, DOLLAR, MARKS THE FINAL STAGE OF THE COLLAPSE OF THE DOLLAR, PAVES WAY FOR HYPERINFLATION, DICTATORSHIP BY TRUMP AND HIS EPSTEIN CIRCLE
Trump announced he was firing Lisa Cook with immediate effect on Monday night on his social media platform, in a power grab over the Fed and the US monetary policy which marks another milestone in an impending collapse of the dollar.
The mere fact that Trump is ready to create a Constitutional crisis by trying to remove Cook with emergency powers and unsubstantiated allegations and apparant lies has sent shockwaves through global markets and caused investors to flee to crypto and gold amid fears Trump will succeed in getting control of the Fed and bending its policies to control inflation to his ever changing whims as he sits behind his desk in the Oval Office.
From media
Long-term US government bonds were sold off on Tuesday, suggesting that investors are concerned about the Federal Reserve's independence after Trump's attempt to fire one of the central bank's governors.
If investors start to doubt the Fed's credibility, borrowing costs for the US government could rise – and that would have knock-on effects around the world since they are used to set the price of assets.
Cook is one of seven members of the Fed's board of governors, and in this position sits on the 12-member committee which is responsible for setting interest rates in the US.
"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis," Cook's lawyer said on Tuesday. "We will be filing a lawsuit challenging this illegal action."
The Federal Reserve weighed in too.
"Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only 'for cause'," the central bank said in a statement. "Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people."
https://www.bbc.com/news/articles/cx275n8gx0ro
Up until now, Trump has resisted firing the Fed Chair Jerome Powell who has kept interest rates high to controlinflation, due to fears of market shocks. Powell s term is due to run out in May 2026.
Fixated as Trump and his Epstien linked White House are with lower interesr rates, the Fed s independence is close to an end and its take over by the White House almost certain.
The Fed s de facto take over by Trump means the end of the Fed’s credibility to signal future policy and have markets believe it and manage the economy effectively.
Chaos.
If Trump succeeds in getting control of the majority of seven Fed govs on the 12 member Fed Board by using emergency powers and a flimsy pretext, then he can influence the Fed s long term personnel compositions, its decisions and crucially get the Fed to lower interest rates, which he thinks will spur investment funded by credit sufficient to offset inflation.
However, lower interest rates will almost certainly not spur investment sufficient to offset inflation given the massive debt and structural problems of the US economy which Trump has made worse by misguided policies.
Growing fears of US collapsing into hyperinflaiton comes as a ever weaker US economy is becoming more irrelevant to the broad global economic picture as the BRICS rise up to replace America, the UK and EU with sound currencies and economics and an alternative payment system as well as more advanced militaries.
Trump's tariffs have brought India closer to Russia and China and could give birth to a $54 trillion global powerhouse
The overvaluation of the dollar means the 54 trillion dollar figure does not capture the real economic power of India, Russia and China.
Markets rightly expect lower interesr rates will fuel inflation, already rising due to Trump s tax cuts, import taxes and tariff chaos and factors.
If a Fed does not rise interet rates to combat inflation, then hyperinflation is around the corner because of structural problems in the US economy as dicussed also by Bill Gross.
Bill Gross's bearish outlook on U.S. 10-year yields is a reminder that structural forces—fiscal deficits, inflation, and global trade dynamics—can outlast even the most aggressive monetary policy shifts. While the Fed's potential rate cuts may offer temporary relief, the long-term trajectory for yields remains upward. For bond investors, the 4.25% level is not a safe haven but a warning sign. In this environment, prudence, diversification, and a willingness to adapt to shifting macroeconomic realities will be the keys to success.
At the same time, lower interest rates will make long term and even short term US bonds issued to fund the governments gigantic and ever growing debt (due to Trump s tax cuts) unattractive for investors, raising the issue of insolvency.
If Trump cannot raise money from investors to fund the ever growing budget deficit, expanding also due to his tax cutes, then he will have to print money, fuelling inflation, hyperinflation and burying the dollar.
Whichever way, sooner rather than later, Trump will unleash a wave of inflation if he goes ahead with his plan.
Investors will abandon the US Treasuries and the dollar. The gigantic US bond market will be affected.
The dollar s role as a reserve currency will end. The value of the dollar to other currencies will sharply decline. Imports will become far more expensive, fuelling another wave of inflation in a downward spiral for the US economy.
Trump may well seek to control the fall out from the mass impoversihment of Americans due to hyperinflation by imposing a dictatorship.
However, this result in civil war as the public will understands very well that Trump has caused the economic catastrophe by his policies. The also understand that Trump and his close circle of advisors Lutnik and Bessent are linked to a shadowy network of blackmailers and paedophiles through Epstein, creating a crisis in democracy.
Hyperinflation and civil war will also pave the way for the BRIC countries to buy up the USA.
Trump and his corrupted FBI, who have suppressed the Epstein files, may even send in agents to arrest or intimidate Cook.
Whether the US Supreme Court has the backbone to stop Trump s dictatorial rampage and the total collapse of the US economy into hyperinflation and dictatoship is an open question given its half hearted attempts to put checks on a plainly illegitimate president likely blackmailed by Epstein and caught in crimes against the American public in prosecutor probes in Greece in 2017.
Who are the "good people" he has in mind to replace Cook?
Stephen Miran, co author of Trump s tariff chaos?
https://fortune.com/article/who-is-stephen-miran-paper-trump-tariffs/
He told us his tariff wars would do that . But they created a disaster for the US economy as all his and Bessent and Lutniks calculations failed because of their overestimation of the strength of the US market and the desirability of the dollar in 20205.
He told us his tax bill would do the same but it has not. It has increased the budget deficit and debt and done little to stimulate the economy.
So why given all his failures, does Trump believe this time he will not fail by destroying the Fed s credibilty by forcing lower interest?
The answer may be, alas, the moron effect. The moron never learns.
The falure to learn is amplfied by fake or failing alt media like Zerohedge or Alex Jones who persist in trying to spin things for Trump and serve up pro Trump propaganda instead of giving a realistic analysis of how dangerous it is for Trump and his Epstein cronies to be seen anywhere near the Fed given their record.
They should start learning Russian, Chinese and prepare for their trials because this criminal network linked to Epstein is now globally known.
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