It’s Thursday. And it’s time for your midday update.
Here are the top stories we’re tracking:
The Trump-Bessent Treasury intervention has already been wiped out
Trump threatened Iran and anyone of their trading partners with “Economic D-Day.” If there’s anyone who knows how to destroy an economy, it’s Trump.
Iran mocked Trump’s announcement and demanded the U.S. leave the region
Oil and diesel prices continue to surge as Treasury yields climb
The national debt crossed $40 trillion
Walmart reported its weakest U.S. sales growth in 6 years
Trump officials blamed Biden for all the country’s problems, because of course…
ABC is seeking emergency court protection from the FCC
The Army eliminated an experimental drone battalion while another unit offered time off to play the new Grand Theft Auto video game
The FBI seized former Rep. Eric Swalwell’s electronic devices
A major frozen berry recall
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Trump’s Treasury Intervention Didn’t Help for Long…
The Treasury Department announced Wednesday it would at least double certain long-term bond buybacks, raising the maximum size of some operations from $2B to at least $4B. I did a special report on the unusual scheme with MeidasTouch Chief Economist Justin Wolfers yesterday explaining this in detail. You can watch it here.
The 10-year Treasury yield initially fell from roughly 4.68% to 4.63%. But within 24 hours, it climbed to about 4.71%, higher than before the announcement. At the same time, the national debt officially crossed a whopping $40 TRILLION, increasing about $2.9T over the past year alone… So naturally, Bessent blamed Biden, declared there was no “magic” about reaching $40T, and insisted America could simply grow its way out of it. In reality, growth remains weak, borrowing costs are elevated, and consumer spending is under stress. Bitcoin’s been surging on the economic turmoil, however. The crypto insiders around Trump continue finding opportunities in the volatility while average Americans absorb higher prices and borrowing costs.
About Trump’s “Economic D-Day”
Yesterday, Trump announced he was launching what he called the most crushing economic operation ever imposed on another country and threatened “tremendous economic consequences” against anyone who provides Iran with a financial or logistical lifeline. So… China? Russia? Yeah, OK. When CNBC asked Bessent whether Trump’s threats apply to China, Iran’s largest economic partner and a major buyer of its oil, he refused to answer. Trump gave few details about what would actually be added to the existing sanctions and blockade campaign. The announcement followed the expiration of the 60-day negotiating window laid out in the MOU as talks remain stalled.
Iran’s been mocking Trump ever since. Foreign Minister Araghchi called out the America’s $40T debt and surging interest costs, called Trump’s announcement a diversion from his economic crisis at home. Deputy Foreign Minister Gharibabadi mocked Trump for claiming Iran is “hanging by a thread” while begging American allies for help. Iranian parliamentary national security chair Azizi warned the U.S. to leave the region. Meanwhile, U.S. crude climbed above $87 a barrel, its highest level since July 24. And wholesale diesel approached $190 a barrel, to near historic territory.
I will give Trump this: if anyone knows how to destroy an economy, it’s him…
Walmart’s Warning
Walmart shares plunged more than 8% after the company reported its weakest U.S. sales growth in 6 years. U.S. sales rose 2.6%, below the ~3.8% analysts expected and down from 4.1% in the previous quarter. Customer traffic growth slowed as consumers cut out discretionary purchases. Walmart also said they expect rising fuel prices to add about $2B in costs above its original expectations.
Agriculture Secretary Brooke Rollins responded to questions about beef prices, food affordability, and the effects of Trump’s Iran War on farmers… Her response? Can you guess it? Yes, she blamed… Biden!! Seeing a pattern?
Bessent gave one of the most insane responses to the weak employment data, arguing that the U.S. no longer needs to create as many jobs because of Trump’s deportations. What insane spin! And so if I am following his logic correctly, those immigrants were never taking any American jobs to begin with.
Side note: I’m often asked where I go to do research for my reporting. One of the main research tools I use is called Ground News.
Ground News shows me how stories are being covered from different political perspectives, and it highlights “blindspots” where only left-wing or right-wing media is covering a story.
Ground News has been a great sponsor of our YouTube channel and podcast, and they’re now sponsoring this post as well. I worked out a deal with them: if you go to ground.news/meidastouch, you can get 40% off Ground News’ top-tier Vantage plan, which gives you unlimited access to all the research tools I use.
Ground News is subscriber-funded, so they don’t rely on ads that could introduce bias. By subscribing, you support both our channel and their independent team working to keep the media transparent.
Investigations, Retaliation, Security Concerns + More
ABC and Disney aren’t wasting time. They’ve now asked a federal court for an emergency hearing as they seek a temporary restraining order against FCC Chair Brendan Carr and the commission, accusing Carr of retaliating against ABC over its editorial decisions and political coverage. The filing says the threat of “draconian sanctions” is also causing irreparable harm.
Federal agents have seized the electronic devices belonging to former Democrat Rep. Eric Swalwell at San Francisco International Airport and from his DC home as part of a reported sexual misconduct investigation. Swalwell was not detained and has denied the allegations.
Separately, Trump’s “human printer” Natalie Harp reportedly worked in the White House for over a year without completing standard security clearance processes, per MS NOW. The White House says she now holds the proper clearance.
Hegseth’s Doing What?
The Army is phasing out a 600-soldier experimental drone-assault battalion in Europe and returning its troops to conventional infantry roles, per the WSJ. The unit was created to incorporate lessons from Ukraine’s expertise in drone warfare. Defense experts are warning that reversing the initiative could be dangerous, and leave the U.S. unprepared for the ways that war is being fought in the modern era.
But, at least the troops get to play video games! At Fort Stewart, Georgia, an Army battalion is offering eligible soldiers a 4-day pass timed to the release of Grand Theft Auto VI if they reenlist for 2-6 years. More via Meidas News.
A Few More Things
Darlene Graham, Trump’s pick for her late brother’s Senate seat, is still trying to recover from a huge gaffe during a debate when she admitted that national security is not at all her expertise when asked about Taiwan and the South China Sea. On Fox News, she said that South Carolinians were far more concerned about transgender athletes than national security. Huh?
Israel Defense Minister Katz warned Turkish President Erdogan against testing Israel’s military resolve in Syria as tensions continue to escalate and the Netanyahu government expands its military operations across the region.
The FDA upgraded a recall of GreenWise organic frozen blueberries and mixed berries to its most serious risk category, noting they may contain E. coli. Twelve illnesses and 4 hospitalizations have been reported. Here’s a list of the government recalls and alerts in Trump’s second term:
All this chaos is why my brothers and I wrote WTF America. The book is available for preorder now. I hope you consider snagging your copy today, and if you do, let me know in the comments. It tells the story of how we got to this moment, and more importantly, how we fight our way back.
That’s it for now. Much more to come. Remember to join as a paid subscriber if you haven’t yet. Thanks as always, and shoutout to the Meidas Mighty!
Funny I don’t remember this feeling of doom present when Biden was the POTUS!
Ummmm of course it's Biden's fault according to the Trump regime. I didn't expect anything different coming from their filthy mouths. 😒