Here’s my thoughts on what is happening in the markets and why it’s a good thing in the not so long term… Bessent /Trump are playing 3D chess and fortifying the dollar by tackling the red flags seen in the struggles of rival currencies like the Euro, Chinese Yuan, and Japanese Yen—major players vying for global financial clout. Overheated US real estate markets, surging government bond yields, and other warning signs resembled the setups that have historically invited massive speculative takedowns by bad actor funds like Soros’. A deep dive into housing costs and bond rates isn’t just crowd-pleasing rhetoric—it’s targeting the pulse of a currency’s vigor. This is about stress-testing the dollar: pinpointing its soft spots to armor it against future raids. This is a financial war we’ve been in and we just went on offense.
One glaring chink in the armor was an overhyped trading scene. Wall Street has been buzzing on adrenaline, with hedge funds borrowing up to their eyeballs. If that bubble burst, it could’ve unleashed a financial meltdown like 2008. The tariff rollout—chaos included—was a deliberate jolt to the system. Wall Street recoiled and shed its excess baggage, ensuring banks and hedge funds wouldn’t be stuck drowning in unpayable debts from wild overreach.
This shake-up ripples straight to the top 10% of Americans, who hold the reins of stock market action. Federal Reserve numbers show the richest 10% control about 90% of U.S. stocks and mutual fund shares. Here’s a snapshot;
```
Market Participation by Wealth Tier (2023 Data):
- Top 1%: 54% of total stock holdings
- Next 9% (2nd-10th tier): 35% of total stock holdings
- Bottom 90%: 11% of total stock holdings
```
For short-term traders and investors in this upper crust, the tariff-sparked turbulence and pullback hit fast and hard. Hedge funds offloading bets squash high-stakes gambles, slamming day traders and leveraged players with instant setbacks. Longer-term investors in this group stare down slimmer bond yields as a flight to safety looms, crimping near-term gains.
The bold tariff moves also sync with the outlook of an economic slump or nosedive in China, a drum he beat loudly heard lately. By cornering China and choking off their exports, the US is crafting a scenario that’s rattled currencies like the Yuan, Euro, or Yen in past showdowns with the dollar. A buckling Chinese Yuan could ignite a worldwide sprint into U.S. Treasury bonds, pushing interest rates down further. That would grease the wheels for refinancing the $9T in maturing U.S. debt, solidifying the dollar—but in the short run, it’s a gut punch for the top 10%, with traders racing to regroup and investors weathering a yield squeeze. This pain is needed for the remake of the US economy away from the globalization puppet masters. Now, is the next step to fix US financial markets and reduce the fraud
@DOGE @DOGE_SEC ???