If you thought the markets were crazy before, buckle up—because Trump is setting the stage for what I call the “MAGA Wealth Effect.” With the latest CPI numbers showing an uptick (no surprise there), and Trump now calling for lower interest rates alongside tariffs, the writing is on the wall: asset prices are about to explode. But here’s the real question—does this mean wealth for everyone, or just another inflationary spiral that benefits the already rich? Let’s break it down.
Inflation isn’t some shadowy economic force—it’s baked into the very system we use. More money, chasing the same (or fewer) goods, means higher prices. That’s just reality. The latest CPI report shows an increase, and if history tells us anything, it’s that inflation never really goes away—it just shifts around.
So how do politicians deal with it? They don’t. Instead, they spin the story. Biden’s team is hoping to downplay inflation, while Trump is leaning into it—hard.
Instead of pretending inflation can be “fixed,” Trump’s move is to ride the wave. His play? Lower interest rates, increase liquidity, and slap tariffs on imports—all of which create a short-term boost that makes stock portfolios look great. And when asset prices go up, people feel richer, even if their dollars buy less. That’s the MAGA Wealth Effect—the illusion of prosperity through asset inflation.
Trump recently posted on Truth Social that interest rates should be lowered—which is ironic, given that higher rates were supposed to be the weapon against inflation. But here’s where it gets interesting: he linked the call for lower rates directly to his plan for tariffs.
Tariffs sound like a tax on China, but in reality, they’re a tax on American consumers. When companies pay more to import goods, they don’t eat the cost—they pass it along to you. So Trump’s plan effectively raises prices, but to soften the blow, he’s pushing for lower rates and easier money. The result?
So while investors (especially those already wealthy) see their portfolios skyrocket, the average person pays more for groceries, gas, and just about everything else.
If you think this is just another market cycle, think again. The entire world is watching the U.S. dollar get weaker in real time, and they’re moving accordingly. Central banks are hoarding gold, silver is getting squeezed, and Bitcoin is riding high as institutions gobble it up behind the scenes.
Why? Because the wealthiest players in the game know what’s coming. Trump’s economic playbook ensures more debt, more money printing, and more currency devaluation. And when that happens, the smart money doesn’t sit in dollars—they move into hard assets.
This is why:
Meanwhile, everyday Americans are being told to chase stocks—because that’s where the illusion of wealth is strongest.
The truth is, this market “boom” isn’t real wealth—it’s just a repricing of everything in dollar terms. Your assets might be worth more dollars, but those dollars buy less. That’s the hidden tax of inflation.
Trump will claim victory when the Dow and Bitcoin hit all-time highs, but if you’re not positioned in hard assets, you’ll wake up one day realizing that the real winners were the ones who saw through the game.
So, what do you think—is this the ultimate wealth transfer, or just smart economics? Drop a comment below and share your thoughts.
Read the latest RTD Blog:
A gold “flash crash” shocked and appalled commodity traders exactly one year after gold hit an all-time high on August 6th 2020. It wasn’t an issue with gold bullion itself, but a sudden and unexpected plunge in gold paper/futures contract prices that represented the biggest two-day drop in gold (in dollar terms) since the March 2020 crash.
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