Trump's "Economic Surgery": The Stealth Game Behind the U.S. Stock Plunge
1. A well-planned "bloodletting treatment" In March 2025, the U.S. stock market plummeted by 650 points in a single day, the price of Bitcoin fell below $80,000, and more than 210,000 people liquidated their positions within 24 hours. While retail investors wailed in the community, the White House chief of staff sneered at an internal meeting: "This is exactly what the president wants." " The Trump administration's tariffs are hitting global supply chains with precision: a 25% tariff on steel and aluminum, a tariff on automobiles in April, and a technology blockade in the semiconductor sector, each of which has hit American companies at the door. Behind the seemingly crazy move lies the shrewd calculation of the businessman president - by actively creating a recession, forcing the Federal Reserve to bow its head and cut interest rates. Treasury Secretary Bessant hinted in an interview: "The market needs to go through a detoxification period. The prosperity of the Biden administration is a false bubble built on government deficits, and we need to shift the roots of economic growth from government spending to the private sector. " Second, the countdown to the U.S. debt bomb Trump inherited a mess: the size of the U.S. debt exceeded $40 trillion, and interest payments accounted for 25% of the budget. If the Biden fiscal stimulus continues, the U.S. debt will exceed $50 trillion in 2026, equivalent to $120,000 per American. "We can't continue to dance on the debt cliff." In an internal meeting, Trump stressed that "the market bubble must be cleared before it can make room for subsequent policies." " Economists point out that Trump's strategy is actually replicating the playbook of Reagannomic in the 1980s: by actively creating a recession and lowering inflation expectations, paving the way for subsequent tax cuts and infrastructure plans. But what's different this time is that the global economy is deeply interconnected, and America's "bloodletting treatment" is triggering a ripple effect in global financial markets. 3. Bitcoin's "Golden Trap" Trump's signing of the Bitcoin Strategic Reserve Order once made the market cheer, but the subsequent plunge caught investors off guard. The data shows that the 200,000 bitcoins accumulated by the U.S. government through the criminal forfeiture process have become a bargaining chip after the policy is favorable. "It's not a conspiracy, it's a conspiracy." Crypto analysts pointed out that "the Trump administration is essentially harvesting global leeks by building positions at a low level and releasing good news at a high level." " More alarmingly, the collapse of the US dollar credit system is accelerating: global central banks are selling US bonds, many countries are seeking to de-dollarize, and Trump's "digital dollar" plan is actually preparing for the collapse of the US dollar credit system - when fiat currencies lose trust, people need new value anchors. IV. The Ultimate Script for the War on Wealth This economic crisis is essentially a reshuffling of global wealth: U.S. stocks plummet: Retail investors and institutions that take over at a high level will suffer major losses, and wealth will be transferred to capital in a low layout Dollar depreciation: Diluting debt through inflation, shifting the burden to global dollar holders The Rise of Bitcoin: When the dollar's credit collapses, the U.S. government's Bitcoin holdings will become the new cornerstone of national wealth Just as the decoupling of the dollar from gold in 1971 reshaped the global financial order, the crisis in 2025 could give rise to a new monetary system. And Trump's "economic surgery" is only a prelude to this war for wealth. 5. Ordinary people's survival guide In this crisis, ordinary investors need to see three truths: The decline in US equities is just the beginning: the S&P 500 may still have 20% room to fall until the Fed is forced to cut interest rates Bitcoin is not a safe-haven asset: it fluctuates in the short term due to policy influences, but in the long term it remains a tool against the hegemony of the dollar Cash is king: Keep your living expenses for 3-6 months and wait for the opportunity to buy the bottom when the market panics Remember: every economic crisis is an opportunity for wealth redistribution. When the tide recedes, those who read the script have already picked up the shells on the beach.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Trump's "Economic Surgery": The Stealth Game Behind the U.S. Stock Plunge
1. A well-planned "bloodletting treatment" In March 2025, the U.S. stock market plummeted by 650 points in a single day, the price of Bitcoin fell below $80,000, and more than 210,000 people liquidated their positions within 24 hours. While retail investors wailed in the community, the White House chief of staff sneered at an internal meeting: "This is exactly what the president wants." "
The Trump administration's tariffs are hitting global supply chains with precision: a 25% tariff on steel and aluminum, a tariff on automobiles in April, and a technology blockade in the semiconductor sector, each of which has hit American companies at the door. Behind the seemingly crazy move lies the shrewd calculation of the businessman president - by actively creating a recession, forcing the Federal Reserve to bow its head and cut interest rates.
Treasury Secretary Bessant hinted in an interview: "The market needs to go through a detoxification period. The prosperity of the Biden administration is a false bubble built on government deficits, and we need to shift the roots of economic growth from government spending to the private sector. "
Second, the countdown to the U.S. debt bomb Trump inherited a mess: the size of the U.S. debt exceeded $40 trillion, and interest payments accounted for 25% of the budget. If the Biden fiscal stimulus continues, the U.S. debt will exceed $50 trillion in 2026, equivalent to $120,000 per American.
"We can't continue to dance on the debt cliff." In an internal meeting, Trump stressed that "the market bubble must be cleared before it can make room for subsequent policies." "
Economists point out that Trump's strategy is actually replicating the playbook of Reagannomic in the 1980s: by actively creating a recession and lowering inflation expectations, paving the way for subsequent tax cuts and infrastructure plans. But what's different this time is that the global economy is deeply interconnected, and America's "bloodletting treatment" is triggering a ripple effect in global financial markets.
3. Bitcoin's "Golden Trap" Trump's signing of the Bitcoin Strategic Reserve Order once made the market cheer, but the subsequent plunge caught investors off guard. The data shows that the 200,000 bitcoins accumulated by the U.S. government through the criminal forfeiture process have become a bargaining chip after the policy is favorable.
"It's not a conspiracy, it's a conspiracy." Crypto analysts pointed out that "the Trump administration is essentially harvesting global leeks by building positions at a low level and releasing good news at a high level." "
More alarmingly, the collapse of the US dollar credit system is accelerating: global central banks are selling US bonds, many countries are seeking to de-dollarize, and Trump's "digital dollar" plan is actually preparing for the collapse of the US dollar credit system - when fiat currencies lose trust, people need new value anchors.
IV. The Ultimate Script for the War on Wealth This economic crisis is essentially a reshuffling of global wealth:
U.S. stocks plummet: Retail investors and institutions that take over at a high level will suffer major losses, and wealth will be transferred to capital in a low layout
Dollar depreciation: Diluting debt through inflation, shifting the burden to global dollar holders
The Rise of Bitcoin: When the dollar's credit collapses, the U.S. government's Bitcoin holdings will become the new cornerstone of national wealth
Just as the decoupling of the dollar from gold in 1971 reshaped the global financial order, the crisis in 2025 could give rise to a new monetary system. And Trump's "economic surgery" is only a prelude to this war for wealth.
5. Ordinary people's survival guide In this crisis, ordinary investors need to see three truths:
The decline in US equities is just the beginning: the S&P 500 may still have 20% room to fall until the Fed is forced to cut interest rates
Bitcoin is not a safe-haven asset: it fluctuates in the short term due to policy influences, but in the long term it remains a tool against the hegemony of the dollar
Cash is king: Keep your living expenses for 3-6 months and wait for the opportunity to buy the bottom when the market panics
Remember: every economic crisis is an opportunity for wealth redistribution. When the tide recedes, those who read the script have already picked up the shells on the beach.