In recent days, the US stock market has been on a downward trend following a series of declines since March 11. Currently, the Dow Jones Industrial Average has dropped by approximately 10% from its peak in December of the previous year before Trump took office. The Nasdaq index has fallen by 15%, while the S&P 500 index, although performing slightly better, has also dropped by around 8% to 9%. Many economic experts believe that the US economy is currently in a very precarious situation, especially with the federal government’s high debt ratio and President Trump’s tariff measures which are expected to cause significant issues for the US economy.
On the other hand, there are various conspiracy theories circulating, such as claims that left-wing organizations are collectively boycotting the Trump administration. There are also contrary analyses suggesting that Trump is intentionally causing an economic downturn to pressure the Federal Reserve to lower interest rates, among other reasons. To understand the true situation, let’s delve into expert interpretations.
Independent TV producer Li Jun stated on the New Tang Dynasty TV’s “Elite Forum” program that since February of this year, the stock market performance has been less than ideal, showing a clear downward trend. Particularly on March 11, the S&P dropped by 2.7%, Nasdaq by 4%, and Dow Jones by 2%, making it the worst performing day of 2025 so far.
Currently, Trump attributes the stock market decline to the aftereffects of the Biden administration’s poor economic policies. He believes that his tax cuts, reducing market regulation policies, including tariff policies, will lead to a much-improved US economy in the future.
Li Jun mentioned that the US Treasury Secretary likened the current economic policy shift to a “detox period”. Moving away from a model dependent on large-scale government spending towards a growth model oriented towards the private sector may involve short-term adjustments and pains. He highlighted that in recent years, especially during the Biden administration and leading up to the election, the US economy achieved growth through massive public expenditures, creating a dependency on government funding akin to a form of addiction.
Xie Tian, a professor at the Moore School of Business at the University of South Carolina, expressed on the “Elite Forum” that in times of economic uncertainty and potential growth downturns, Wall Street is primarily concerned with uncertainties. Factors such as the uncertainty surrounding the implementation and repercussions of tariffs, responses from foreign governments through counter-tariff measures, all contribute to Wall Street’s apprehensions.
The current issues being seen involve financial corporations controlled by groups like Blackstone and other left-wing institutions blatantly involved in short selling related to Soros-affiliated banking groups. These politically motivated actions alongside economic factors are contributing to protests against the Trump administration.
On the matter of Bill Gates persistently shorting Elon Musk, Tian mentioned that these market fluctuations seem to be orchestrated by left-wing institutions and banking groups, unitedly engaging in short-selling tactics or demonstrations against the Trump administration.
Tian’s perspective on the situation is that beyond political factors, there’s no major need for concern. Even fluctuations of 7%, 9%, or 10% are not drastic issues. Tian also emphasized the crucial points, such as the federal government’s debt issue and the tariff problem, that will play a significant role in shaping the future of the US economy.
Guo Jun shared insights on the Wall Street Journal’s recent article that highlighted the business community’s desire for a clear direction from the Trump administration. The inconsistency in policies and statements from different officials has led to uncertainties within the business community. He referenced Trump’s meeting with top CEOs to reassure and address these concerns.
Guo Jun pointed out the critical issue facing the US economy, highlighting the near-bankruptcy state of the federal government. With the federal deficit reaching $1.8 trillion last year, equivalent to the GDP of Canada, and the total US national debt at $35 trillion, the government’s fiscal deficit ratio plays a significant role.
The ongoing deficit poses risks to the US economy, with economists suggesting that surpassing a 7.5% deficit ratio could potentially trigger a downhill spiral for the economy, leading to a major recession.
The article continues to delve into various experts’ viewpoints, including the gradual reduction of the US government’s deficit and tackling the high tariffs, actions taken by the Musk government efficiency department to trim government expenses, implications of tax rebates for households, and the overall potential positive outlook for the US economy once uncertainties are addressed and economic policies are stabilized.
The ongoing developments in US economic policies, the responses to tariff wars, the shift in manufacturing to the US, and the financial implications of these actions are further analyzed by experts, providing a comprehensive outlook on the current economic landscape.
The “Elite Forum” program initiated by New Tang Dynasty TV and Da Ji Yuan aims to offer in-depth analyses of societal issues and historical truths by gathering global elites to engage in discussions on pressing matters.
For further insights and a detailed analysis, the complete episode of the “Elite Forum” can be viewed online.
The production team of the “Elite Forum.”
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