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Trump Flinches - Yields are The Cause [1]

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Date: 2025-04-09

I’m seeing lots of discussion about what the cause and purpose of this on and off approach to tariffs is. Why did Trump hold on, then decide to pull back last minute, despite declaring he would after the initial tweet and bounce. It makes no sense to deny the original tweet that sent markets up to turn around a day later to do the exact thing being denied.

It isn’t market manipulation in the sense we think, where it has been preplanned for pump-and-dumps or dumps-and-pumps; these are the natural result of having an erratic, unstable market. The more instability, the easier it is to wait for a large gyration to do a pump and dump scheme.

The easiest way to understand this is a battle between some of the most powerful players in American and global finances, and Trump and his MAGA base. Trump and his base truly believe what they are saying about how America has been treated and truly believe in the tariffs approach to handling their grievances; Trump agrees with this belief himself because he was ostracized by the world most his life, outside authoritarians like Putin who saw an easy puppet.

The money interests pulled their first punches, which was tanking the stock market. However, when that didn’t work, they tried “leaking” a tweet and hoping Trump and his admin would use it as a moment to bail on their bad plans. That didn’t work.

If they can’t get Trump to respond to stock falls or twitter posts, they only have one last option to get him under their control. Go for treasury yields, the underlying lynchpin of our whole economy and the world economy. So, they start stocks and buying tons of treasury bonds causing the yield rate to plummet. If the yield rate plummets long enough and low enough, it creates such a gap in the yield of treasury bonds compared to the assets those bonds were used to buy that overnight the vast majority of liquidity will be sucked out of the system and there won’t be enough to cover the increased losses in the market.

What happens when massive losses hit stocks and there is no liquidity to cover those losses, and those losses on those assets are actually financially secured by treasury bonds that have lost their yield completely? The whole system comes to a grinding halt as massive amounts of wealth get vaporized in the stock meltdown. And with no liquidity in the system, the fall is not going to stop until so much wealth is lost that assets values go low enough the small liquidity left in the system can finally cover them. We’re talking about great depression wealth vaporization within a few days, like dropping by 10,000+ points within a day.

The wealthy gambled the whole world economic system in a battle against Trump and his MAGA stupidity. The wealthy won; they know who their lap dog is at the end of the day. They just had to threaten to nuke the whole financial system to do it, which they were ready to do.

As always, Trump is a coward at the end of the day, and he will bend to whoever wields the most power. The moneyed interest proved to Trump they are willing to blow up this whole system; that they would rather have him a ruler of dust then bend the knee to him; They can just ride it out until its over and come back. He flinched when he realized this, and the money now knows he is bought again. At the end of the day, he can say whatever he wants, but Trump again proved he is a coward that is still beholden to our true rulers, the billionaire class.

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[1] Url: https://www.dailykos.com/stories/2025/4/9/2315607/-Trump-Flinches-Yields-are-The-Cause?pm_campaign=front_page&pm_source=more_community&pm_medium=web

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