Power and Money Flow - The US Stock Market
Facts:
(i) The US stock market has increased significantly during the Trump presidency. Why?
(ii) Debt now is US$40 trillion dollars. 124% debt to GDP - the second worst in the world behind Japan.
(iii) The Japanese currency has collapsed over the same time.
(iv) This week (first week of August 2026) US and Japanese central banks have bought the ¥ Yen to solely increase its value.
(v) History says central banks can only do so for so long, until they run out of money to use for this purpose.
(vi) The US$ dollar during the Trump administration has remained relatively steady to other major world currencies despite the increase in public debt.
(vii) In America, as elsewhere in the world today, there is a “cost of living crisis" caused by the US quantitative easing (printing of money from 2008-22).
(viii) Then the imposition of tariffs across the world on goods imported into America. Such simply has made goods more expensive in America and given the US administration/treasury more money to spend on its current wars.
(ix) American wars in the Middle East are expensive and inflationary. The closure of the Strait of Hormuz has increased the price of petrol and most goods and services around the world (the Strait of Hormuz was open until March 1st 2026 after a war commenced on the 28th of February 2026).
The above are hardly facts likely to significantly increase the US stock market.
Profits of some companies have increased. Agreed. But a major amount of money has been put into the US stock market to invest in Artificial Intelligence (AI).
How are these investments made and by whom?
My guess today is wealthy individuals and corporations with insider information or who “gamble” on the market going up with "derivative trading”. (Derivative trading is using options for as little as 5% of the actual price of the share to buy the share in full at a future date - 3,6 or 12 months in the future).
Right now that market is worth about US$100 trillion dollars alone. As a consequence it carries a debt of a similar amount. The market is therefore being “pushed up” by these wealthy individuals and corporations to give them as easy a purchase as possible to complete their payment under the derivative trade.
What happens when trade is completed?
Because of the wealth and control of this small and elite group the sales are made by “agreement”” between such people.
And then what happens?
By now, this money is unlikely to be reinvested into the US or any other stock market. The equity markets worldwide are greatly overpriced.
Property markets are levelling or falling and adjusting to a different price structure after 25 years of significant growth. Stock markets will follow suit. The price earnings ratios have increased from traditional multiples for no reason other than AI will bring increased productivity and profit to world business and greater general wealth to world communities.
So get ready for a significant stock market fall or correction in values.
If I am right, the real wealth is out of the stock market and being held in cash or gold, silver, or essential businesses, such as energy and food which will continue to provide good profits for “real wealth investors”.