1/ When stocks fall, investors massively move to more reliable assets, for example, US Treasury bonds.
2/ This pressure forces the Fed to lower interest rates to support the economy.
3/ Lowering rates allows Trump to refinance the US national debt at a lower interest rate. Everything becomes cheaper.
4/ Trump imposes tariffs to force companies to relocate production within the US.
5/ Production in the States is exempt from tariffs. But other countries respond with their own tariffs.
6/ In response, American farmers start selling more products domestically, making food more affordable.
7/ At the same time, 94% of stocks are owned by only 8% of the population - the richest.
8/ The market decline hits the wealth of the rich, but lowers prices - it becomes more profitable for ordinary people.
9/ Trump chaotically raises tariffs: today 25% on Mexico, tomorrow he might cancel it. A complete surprise.
10/ Such instability scares investors - they flee to bonds, which are safe, though low-yielding.
