Former U.S. President Donald Trump has raised the specter of an economic cataclysm surpassing the 1929 Great Depression, cautioning that the United States could be on the brink of a severe stock market crash and an ensuing era of financial hardship should he fail to secure victory in the upcoming 2024 presidential election. Trump, the 45th President of the United States, delivered his forecast via a post on his Truth Social platform, asserting that the current market buoyancy is intricately linked to the expectation of his triumph in the election. He grimly forewarns of a stock market collapse, reminiscent of the 1929 disaster that plunged the nation into a protracted economic downturn, should his anticipated victory not materialize.
In a trenchant critique of the current administration's economic policies, Trump specifically targeted President Joe Biden's handling of inflation. According to Trump, the officially reported 17% increase in inflation since Biden assumed office significantly understates the actual rate. He contends that the real inflation rate exceeds 30%, a figure derived from an alternative computation method. Despite recent fluctuations, inflation soared to a 40-year high during Biden's tenure.
Highlighting the financial struggles faced by American consumers, Trump emphasized the record-high credit card debt and the depletion of pandemic-era reserves among the populace. A survey indicated that almost 40% of Americans would struggle to cover a $400 emergency expense, painting a stark picture of the economic challenges confronting the nation.
These warnings come amid a precipitous decline in Biden's approval ratings, with a mere 34% of voters in a Monmouth University poll expressing support for his performance. Concurrently, key stock market indices such as the S&P 500 and the Dow Jones Industrial Average are either reaching or maintaining record highs.
Trump's statements on his Truth Social platform on Friday echo his longstanding economic concerns, asserting, "The economy is in dire straits, and inflation, exceeding 30% over the last three years by some accounts, has obliterated the purchasing power of the consumer. The only factor artificially sustaining the economy is the lingering impact of our achievements during the Trump administration."
Additionally, Trump underscored the link between the stock market's elevation and the widespread belief in his imminent electoral success. He cautioned that failure to secure victory would precipitate a stock market "crash" worse than the catastrophic events of 1929, potentially leading to a Great Depression.
Official Bureau of Labor Statistics (BLS) data indicates a 17% price increase since President Joe Biden assumed office, although an alternative inflation measure, applying the methodology from the 1980s, estimates a figure exceeding 30%.
Trump's path to the 2024 Republican nomination faces hurdles due to ongoing legal battles, with current restrictions barring him from the primary ballot in Colorado and Maine. The Supreme Court is expected to decide on states' authority to prevent a presidential run.
This is not the first instance of Trump sounding the alarm about potential economic turmoil in the event of an electoral loss. In July, he predicted an economic depression, and in April, he expressed concerns about a plunging U.S. dollar and the looming specter of World War III. Trump also highlighted the perceived currency war against China, noting China's efforts to challenge the USD's status as the world's dominant currency.
While some analysts predict that a Trump victory could propel Bitcoin to new heights, asset manager VanEck anticipates an all-time high for BTC post-election. Former SEC Internet Enforcement Chief John Reed Stark even suggests a potential shift in Trump's anti-crypto stance. Meanwhile, Trump has ventured into the realm of non-fungible tokens (NFTs), launching his third collection and reportedly generating millions in ether (ETH) from NFT sales.
