Trump’s Playbook: Crash Stocks, Pump Bonds, and Force Rate Cuts
Over the next six months, the U.S. government needs to refinance a massive $7 trillion in debt. Given today’s high bond yields, that’s an expensive task—one that Trump doesn’t want to happen at current rates.
So, what’s the strategy? Crash the stock market. A sharp sell-off would trigger a flight to safety, driving money into bonds. As a result, bond prices rise, yields drop, and refinancing becomes much cheaper for the government.
But that’s not all. Lower yields also put pressure on the Federal Reserve to cut interest rates, which would ultimately fuel a major rally in risk assets—including stocks and crypto.
So, while the short-term volatility might seem alarming, the bigger picture suggests that the bull market isn’t over—far from it. A massive pump is still on the horizon. Stay patient.