The Relationship Between U.S. Debt and Stock Market Crashes
During Biden's term in 2024, Democratic Treasury Secretary Janet Yellen issued an enormous amount of short-term bonds to make the economy appear strong, effectively engaging in accounting manipulation. This was a dirty strategy to win the election. As these short-term bonds matured, the U.S. debt grew.
Trump, known for his rough and showman style, deliberately crashed the stock market because he knew that when the market collapses, people flock to safe assets like bonds.
When people buy bonds in large quantities, bond prices drop, which in turn lowers the interest rates the U.S. government has to pay and reduces national debt.
Forcing a stock market crash like this just because Jerome Powell refused to cut interest rates is completely wrong.
Trump is intentionally manipulating the stock market. They want people to leave the stock market and buy U.S. Treasuries.
This is a complete catastrophe.
For this crisis to end, one of two things must happen:
Jerome Powell must cut interest rates,
or people must buy bonds in large quantities to lower Treasury yields.
Trump's attempt to use the smart contract function of stablecoins to sell bonds is also aimed at reducing Treasury yields.
If these issues are not resolved, the stock market will continue to decline in a stepwise manner throughout March.