Through Thursday, stocks were on track for a losing week. The Dow is down 795 points (1.87%) for the week. The NASDAQ has dropped 285 points (1.49%), the S&P is off 116 (1.95%), and the NYSE Composite is down 369 points (1.85%).
Anybody who was thinking, "Well, that's OK. Stocks are back close to their all-time highs," and planning to spend the three-day weekend with friends and family (usually mutually-exclusive groups) might want to think again.
At about 7:40 am ET, President Trump posted a message on X or Truth.com saying that Apple would have to pay a 25% tariff on all iPhones made outside the United States. He also posted that starting June 1, the EU would have to pay a 50% tariff on all exports to the U.S., as trade talks have apparently broken down.
While these developments may be somewhat of a surprise, they're not the sole cause of futures falling off a cliff. Trump's tweets are merely cover for what's really causing what looks to be a watershed event on Friday. The real cause of the carnage about to take place is multi-faceted, and all of it is negative. Here's the short list:
- Russia is not going to negotiate on a cease-fire or truce of any kind in Ukraine. It's over. Russia will continue to advance, taking Kiev, and then all of Western Ukraine.
- The U.S. government is chock full of criminals. Senators and House representatives have all taken bribes and kickbacks from Ukraine, drug companies, and anyone else with a handful of cash. The U.S. congress has been looting the Treasury for decades.
- Japan's nearly five decades of self-funding and self-loathing are about to end. The country is fully owned by the Bank of Japan (BOJ), which has issued bonds in their fake, fiat currency, the yen, since 1982. Compared to the U.S. dollar, it's garbage. Compared to real money, gold and silver, it's about as useful as toilet paper. The Japanese economy is sunk.
- Actual patriotic Americans - those who mostly voted for Trump - are outraged over a variety of issues. House members refused to make the cuts imposed by Elon Musk's DOGE team permanent. Federal court judges have thwarted every executive order that President Trump has issued. Food prices remain high. Gas prices are rigged. Americans, who rightfully understand the depth of corruption in Washington, D.C., state capitals and even local governments, have had enough and are beginning to take matters into their own hands. Some refuse to pay taxes. Many more are armed to the teeth, awaiting an actual uprising, an insurrection, against the corrupt federal government.
- Gold and silver price suppression is beyond the pale. A gold:silver ratio over 100 was the last straw, exposing the scandalous price-rigging designed to keep the U.S. dollar afloat.
- BRICS and other nations are shedding U.S. Treasuries, swapping out for gold, which will become a Tier 1 asset for American banks on July 1. The U.S. dollar, euro, and pound are close to being rejected and thrown into the dustbin of history along with all other failed fiat currencies.
That's only the beginning. Illegal immigration, blacks acting like savages are ignored by a controlled media which delivers propaganda rather than honest news reporting. Left-leaning journalists lied about the 2020 elections, Joe Biden's health, Trump's connection to Russia, COVID, and much, much more.
The wheels are coming off the wagon, folks. Your three-day Memorial Day weekend is going to be ruined by a stock market crash. Even if it doesn't materialize today, it will. Everything connected to Wall Street, finance, and your life savings is being unraveled. Those in power, at the Federal Reserve and in government, know that the current trajectory is unsustainable. It's about to come apart at the seams.
With markets about to open Friday, stock futures remain depressed. Dow futures: -525; NASDAQ futures: -380; S&P futures: -82.
The United States government creates just less than $5 billion in new debt per day (realistically, it's about $4.76 billion). You can check it on the US Debt Clock, which is a fairly accurate, real-time run. It's kind of mesmerizing, so it's not advisable to watch the spinning numbers for maore than a few minutes at a time.
Those wishing to estimate when the U.S. government will hit a specific target, say, $37 trillion or $40 trillion, can do the math on a simple calculator. $4.76 billion a day adds up to somewhere in the range of $145-148 billion in your typical month, a little less for April, June, September, and November, which only have 30 days, and February, thankfully, only has 28 except in leap years.
So, when will the U.S. government be $37 trillion in debt? In about 24 or 25 days. Debt accumulation does not take weekends or holidays off; it just keeps running, as any thieving banker would so desire.
Today being the 23rd of May, the timeline for turning over another TRILLION would be Monday, June 16, right before the next Federal Reserve FOMC meeting (Tuesday-Wednesday, June 17-18). It would be some seriously sweet irony if the debt clock clicked over to $37 trillion when the FOMC policy announcement is made at 2:00 pm ET on Wednesday, and even better if it happened during Chairman Powell's press conference. Steve Liesman from CNBC could cough up a question as it ticks past the magic number, like, "Chairman Powell, the U.S. debt just surpassed $37 trillion. Is this a level of debt you consider sustainable?"
Of course, that would never happen. At least not in the near future. But, someday, somebody is going to question just how much debt is too much. Some economists believe it's already too much, becoming an increasingly troublesome burden when the Debt/GDP ratio surpassed 100%. That happened right around the end of 2012 according to the graph below.
The free-spending during the COVID era pushed the ratio to a record high of 132.81, and it appears the Fed got a little worried, and it started coming down. After all, everybody wants their money back, right? However, the way this is going, since the U.S. didn't implode at 100% Debt/GDP or 120%, we should be fine when it hits 130% or even 150%. Of course, by then, a gallon of gas will cost $6, bread will be $8 a loaf and an acceptable minimum wage will be about $25 an hour to flip burgers or paint houses.
Does anybody actually want to live like that?
Apparently, our overlords in Washington D.C. (Den of Criminals) think we can manage. So, print more! Who needs austerity and balanced budgets when you have magic computers that can conjure up billions in fresh dough in seconds?
The point is, if the U.S. government was a business, they'd be bankrupt. Since they're not, no bankruptcy. The Fed can just buy up any bonds they float out there if nobody else is interested. Ad infinitum.
On its current trajectory of increasing the debt by $100 billion every 21 days (see what I did there?), it will take another 630 days to reach $40 trillion, or, about 21 months. See you all back here in February, 2027. It ought to be a real kick.
For now, Happy Memorial Day.
At the Close, Thursday, May 22, 2025:
Dow: 41,859.09, -1.35 (-0.00%)
NASDAQ: 18,925.73, +53.09 (+0.28%)
S&P 500: 5,842.01, -2.60 (-0.04%)
NYSE Composite: 19,564.71, -43.10 (-0.22%)
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