Why Is Trump Crashing the Stock Market: Here is The Method In Trump’s Madness

Why is Trump Crashing the Stock Market: The Problem

The early days of Trump’s second term hinted at a course correction, a chance to smooth out the ad-hoc poor planning of his first presidency. That optimism was short-lived, as decisions began to defy even his strongest backers.

Here’s what went down:

• Act belligerent to every allied nation
• Enact across-the-board tariffs instead of industry-specific ones, walk back and pivot forward again multiple times, confusing investors
• Openly speculate about annexing Greenland from Denmark (one of the most pro-US countries in NATO)
• Starting the money printer again to pay for rising imports despite tariffs (check out M2)
• Scare all the migrant labor into hiding, further slowing down the economy
• Promote a memecoin with your name on your first day in office. Dump it shortly after

99Bitcoins analysts wonder if this will lead to the President being banned from saying anything on social media while they are in power.

The Solution: Is All of This Planned?

Some argue Trump’s recent moves are less about mishandling the economy and more about tapping the brakes to dodge a full-scale collapse.

For instance, tariffs, often slammed as crude policy tools, can work wonders when aimed just right. Case in point: Honda’s call to shift production of its new Civic from Mexico to Indiana by 2028. Trump’s 25% tariffs on Canadian and Mexican imports pushed the decision, promising an annual rollout of 210,000 cars.

Similarly, the semiconductor industry is witnessing a paradigm shift. Taiwan Semiconductor Manufacturing Company (TSMC), the chip titan from Taiwan, is setting up shop in Arizona, a move designed to dodge geopolitical landmines and align with U.S. efforts to lock down tech independence. Beyond the buzzwords, it means jobs—high-paying, skilled ones that jumpstart local economies.

Tariffs might pinch consumers and the markets in the short term, but the price tag is small compared to the payoff of a stronger domestic manufacturing base.

Is Trump Trying to Trigger a Rush on Bonds?

While the market chaos might seem uncontrolled, there could be more methods in Trump’s madness, and the answer could be in the upcoming US 10-year debt renewals.

Trump doesn’t want to renew US debt at a high interest rate and to create an environment that can lower rates; some speculate that Trump is actively trying to lure capital out of equities and crypto into US Treasury bonds.

(Source)

Final Thought

The real issue here, we think, is that the US government has no real way to plan things more than two to four years ahead, maybe eight if they’re lucky.

It’s inherently unstable and unreliable on a long-term basis. The presidential elections and the fact that the president only has power if the House and Senate are aligned make it a lot less able to commit to long-term work.

Xi Jinping of China has been president for 13 years. The guy before him, Hu Jintao, was president for 11. Over the pond, the UK had the Tories in power for 13 years Labour in power for 13 years before that, and the Tories in power for 18 years before that.

The last time the US had a 12-year single-party run as president was Reagan into H.W. Bush.

You can’t trust that anything 2016 Trump says won’t be overturned by 2020 Biden or that anything 2020 Biden says won’t be overturned by 2024 Trump. Hell, you can’t trust that 2024 Trump won’t overturn 2016 Trump.

Call it coordinated, call it chaos—either way, the signs point to harsher storms ahead in the markets before recovery even enters the conversation.

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