well we're seeing that reflected a little bit in the markets also because of the S&P uh Global manufacturing and services pmis that came out about 15 minutes ago they were lower than anticipated uh the manufacturing a little bit higher but Services drops to 497 below 50 below the expansion level and so there's a concern that maybe the consumer is going to be pulling back we had those bad retail sales numbers earlier this month and it may be that consumers are tapped out in January or it may be they're getting concerned and so they're going to
pull back and that's something the FED is going to be watching very closely with the drop in the 10year yield by the way it's yet again a week where the 10e yield has come down under President Donald Trump every week that he's been in office it has come down a little bit it's still higher than 441 that was the first time that bessent made that 10-year comment that 441 level is my new kind of calling like a sneeze away though Mike I want to ask I don't care about this um University of Michigan stuff because
if you look at it divided by Republicans and Democrats uh they just cancel each other out what do you think about the maril Lago Accord that has been talked about yesterday because Jim biano had a meeting but apparently uh who is it Stephen mirin mirin has brought it up and it all centers on zlan posar Research everybody loves a little Zan poser research right research on um sort of redist ruting the costs for Global defense by in some way getting foreign bond holders to swap out their treasuries for longer dated bonds yeah I uh I
forgot to bring my tinfoil hat out here but I think that I would put it in that category uh because there's a couple things that go into this theory that just make no sense at all why if you were a sovereign country uh why would you swap out bonds you're holding that pay you interest for 100 years zero coupon bonds well you'd have to get them for cheap you you you uh use chat GPT and just for fun I plugged in uh why would you buy uh why would you make this Swap and it and
chat GPT said you wouldn't and that's basically it and the idea theory is that because we pay for the defense and station soldiers in these countries that they owe us and they should do it for that reason but that's not correct because some of the countries do pay South Korea pays us over a billion dollars a year to station soldiers there Germany pays for all the bases and upkeep over there so uh which isn't much by the way it isn't much anymore but uh Trump's also talking about pulling troops out of Germany so at this
point there isn't really a motivation for that and the other part of it is revaluing the dollar that is a very dangerous road to go down we saw that in 1995 when Lloyd Benson the treasury secretary suggested the Yen was overvalued and then uh we had to go way way uh into a currency crisis almost and then Bob Rubin with the strong dollar stuff uh those are difficult moves to make without setting the market off
