The US stocks market refuses to break down because  … national security!? By Graham Summers.

58% of American households have exposure to the stock market. In terms of actual wealth, 45% of household wealth is invested in stocks. …

In this context alone, a major bear market/ crisis in stocks represents a matter of national security in terms of economic damage. It’s the equivalent of an economic nuclear weapon. …

The modern economy, after 50 years of paper currencies:

We are in a “K” shaped economy in which the top 10% of incomes/ consumers accounts for nearly ALL of consumer spending/ economic growth while the bottom 90% of the incomes/ consumers are struggling with the higher costs of living due to inflation.

The top 10% of households, the people who are literally driving the economy due to their consumer spending, own over 90% of stocks. In this context, a bear market in stocks would trigger a massive decline in consumer spending. And since consumer spending accounts for 70% of GDP, this would immediately lead to a recession.

This is not hyperbole. We got a taste of this during the trade war/ tariff tantrum in March/ April 2025, when stocks declined 18% in four weeks, erasing $11 trillion in wealth. At that time, numerous companies ranging from Southwest Airlines to Chipotle to PepsiCo warned that they were seeing a pullback in consumer spending that was recessionary.

Stocks bottomed and this changed… and since that time, the economy has chugged along.

What the Fed and the USG do:

I bring all of this up because it is clear, plain as day, that the Fed and the Trump administration are willing to intervene to prop up/ support stocks. Yesterday it was NY Fed President John Williams stating that the Fed was going to cut rates in December.

Stocks exploded higher on the news.

This is nothing new. Time and again we’ve seen stocks on the verge of breaking down only to be “saved” by a Fed official or President Trump tweeting something, etc.

So, interest rates will be kept artificially low, if only so governments can borrow more and afford their interest bill. After three decades, it has reached the point where it is obvious to all that government debt will never be repaid and paper currencies are doomed to an inflationary acceleration for the foreseeable future.