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I thought the financial collapse would come next year. [1]
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Date: 2025-01-28
President Trump (words I find hard to say) has offered incentives to several industries and organizations. He offered a quid pro quo to the oil and gas industry and he seems to be in love with coal. Trump wants a non-EV auto industry. In all of these, he seems to feel that eliminating environmental safeguards and imposing astronomical tariffs - which Americans will pay - will Make America Great Again.
Trump hates EVs, solar, and windmills. He issued Executive Orders that fully stop all wind projects. He has complained about solar but seems to have not yet found a way to sabotage them. As well as wanting to eliminate most childhood vaccinations, RFK Jr proposed seizing drug patents of medications. This has caused price instability from just the mention.
Trump’s Executive Orders have stopped all grants and payments with a few exceptions by the administration - Israel being one. Highway and infrastructure construction has stopped because there is no longer money to pay workers. Medical and environmental research has stopped because there is no longer money. Medicaid providers no longer have a way to be paid as is the case for all federal grants such as research or senior Meals On Wheels to get to the granular. The money has stopped.
The money has stopped.
I could prolong this with copious examples but I believe you see where I am going.
Four common causes of a financial collapse include:
A rapid drop in asset prices.
Financial institutions with liquidity shortages.
Significant difficulty paying debts.
A rapid selloff
There was a rapid drop in asset prices and a significant selloff in AI stocks yesterday after a small China startup found a cheaper and faster way to make buggy whips…, sorry AI.
Universities, medical research organizations, multiple NGOs and others have their funds arbitrarily cut and will not be able to pay debts of staff. This will result in lay-offs on a large scale.
People not being paid or corporations not getting their previously agreed upon grant money or payment for work done will need to withdraw their reserve funds from banks to stay afloat. This could lead to liquidity shortages.
The money has stopped.
I thought the financial collapse would come next year. What will we see in a week or a month?
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