🚫 Experts say 2008 is repeating itself
Massive debts, overheated markets, and political chaos! The warning signs are glaring, but excessive optimism has blinded everyone. Just like before the 2008 crash, everything seems stable.
The United States must repay $7 trillion in debt over the next six months. With high interest rates, this cost is staggering. The only solution, it seems, is a market crash to make bonds attractive again. This is a highly risky strategy.
Trump is back in power. He knows a market crash could lower bond yields and make debt cheaper. The sooner this happens, the lower the cost of rebuilding. The key lies in bonds: rising bond prices, falling yields, and thus reduced debt pressure. To achieve this, stocks must fall, and capital must flow into bonds.
He has imposed heavy tariffs: 34% on China, 25% on South Korea, 46% on Vietnam. This isn’t about protecting domestic production but fueling inflation. Higher import prices will ignite inflation, weaken consumers, and confuse the Federal Reserve. Retaliation from trading partners is inevitable: U.S. exports will suffer, corporate profits will decline, and supply chains will be paralyzed. This is the beginning of a global collapse.
Behind the scenes, liquidity is drying up. Trading volumes are shrinking, and the market is fragile under pressure. Just like in 2008, the surface appears calm, but the reality is terrifying. Banks may seem solid on paper, but their risky derivatives are disastrous.
In theory, crypto should thrive in this chaos, but first, it will crash along with everything else. Institutions will sell Bitcoin and Ethereum, and altcoins will suffer the most. Later, like after the COVID-19 crash in 2020, everything will recover.
Retail investors are still immersed in optimism. Despite a 30% loss since Trump’s inauguration, they trust his words and take risks. This is the same illusion before destruction. The next crash could wipe out more than 50% of value, similar to 2008.
The Federal Reserve is in a dilemma: raising rates will choke the economy, while lowering them will reawaken inflation. They missed the timing in 2008; now, in 2025, they have no tools left. If the market crashes, there is no escape.
Trump wants to control the narrative. A crash in 2025 is an opportunity for him to become a hero by orchestrating a recovery by 2026 or 2028. He will dominate economic cycles, public opinion, and elections. If this crash comes, it is part of the plan: rebuilding through the destruction of debt.