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President TACO Folds Like a Swiss Army Knife

John Galt

Despite the insane market action today, yours truly really wanted to write about the precious metals markets for my audience tonight.

Alas, world events and the Wednesday TACO special from President Instability has thrown that idea on to the back burner for the moment. I shall update my take on the action at the close of trading at the end of the week.

Since the holiday ended on Monday, we’ve witnessed an extraordinary move in equities by algorithms which actually believed the headlines that Trump was seriously entertaining invading the barely inhabited island of Greenland. On Tuesday we witnessed a decline of over 800 Dow points and today a rally of almost 600 points?

Simple:

T rump

A lways

C hickens

O ut

And this time he Taco’d extraordinaire by capitulating to NATO and the EU the minute his backup aircraft hit the tarmac in Switzerland. Is this about markets? Obviously not, as some brave souls have dared the President to follow through on his threats and bought the effing dip every time he starts his dramatic protestations.

Unfortunately, it goes beyond theater however as it truly might be a situation where economic and US political instability could be triggering the wild swings in equities, the rallies in base and precious metals, and of course the uncertainty relating to American central bank policy.

For example today, we heard the following:

For those who doubt Mr. Schwarz’s statement, via the Swiss Federation’s government own pages:

Switzerland has four official national languages: German, French, Italian and Romansh. Multilingualism is a fundamental aspect of Switzerland’s identity and is enshrined in law. German is the most widely spoken language in the country, and almost two thirds of the population speak more than one language at least once a week.

And of course there’s more:

Iceland? Hoo-boy.

But wait, there’s more:

The truth came out later that there was no deal, just an opening for a discussion that the Danish know nothing about and an “opening” of negotiations, once again, that has had no formal action to Copenhagen that the government there is aware of.

Just how bad has the Taco truck been as far as a track record?

Does everyone remember this headline:

Trump says South Korea has agreed to invest $350 billion in US for lower tariffs

Let’s pump the markets up, provide the appearance of an agreement, brag about forcing another nation to agree to “our” terms, and of course, brag about the stock market since Trump came into office.

That was way, way, way back on October 29, 2025. Fast forward to tonight via The Chosun Daily:

South Korea Postpones $20 Billion US Investment Over Weak Won

As nations begin to call Trump’s bluff, the realization that they can win by ignoring his threats, talk nicely to the old man, and give him participation trophies then continue with the “placate, pose, and ignore” strategy with this hysterically off the rails administration, the economic shift to a multipolar world will only accelerate.

This is not a sound method for executing trade policy, mutual defense agreements, or intimidating America’s central bank. In fact, Trump could not excuse himself on the foreign stage attacking Jay Powell at the Federal Reserve again, just six days before the next FOMC meeting:

For some strange reason, despite the happy talk from Wall Street, this author does believe that yes, we might well see Dow 50,000.

But when the faith is broken, the lies exposed, the agreements terminated, and the rebellion of those whores in the Congressional GOP begins to save their own jobs, the economic circumstances and panic which will ensue will be of a historic nature. I can not predict when, but one chart tells me that it is indeed coming.

Click to Enlarge

All one has to look at is the starting date for the chart above.

It truly tells the real tale of the tape.

(Thank you Grok for the awesome title image)

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