Popular Summary of the Key Points
Recently, Trump posted a bunch of absurdly generated images on his own social media platform, Truth Social, claiming that he had made billions of dollars for the U.S. government by manipulating stocks and various assets. He provided no real evidence to support his claims. In reality, his administration has indeed made significant profits by converting subsidies into shares in companies. For instance, they used the $8.9 billion from Biden’s previous chip bill to invest in Intel, and the value of these shares has now increased by more than $40 billion. Additionally, the paid service on his platform, which costs $100,000 per month and provides early access to policy information, is under investigation by U.S. regulators. This entire situation is a mix of half-truth, unconventional new industrial policies, and controversial practices that seem to exploit the capital market.
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Detailed Analysis
1. How much of Trump’s “accomplishment” propaganda is actually true?
At least 70% of what he posted is false. The AI-generated images of him riding a horse with Washington or of Deniro supporting him with a T-shirt are all fabricated. Even the “work photo” showing him sitting in front of a screen full of stock charts is AI-generated. The main claim that he made billions for the U.S. government lacks any corresponding investment evidence. The only verifiable fact is the investment in Intel, which has only resulted in a profit of just over $40 billion—more than ten times less than the claimed amount.
What’s even more ridiculous is that the capital for this investment came from subsidies under Biden’s chip bill. When Trump first took office, he criticized the bill as a waste of money and wanted to abolish it. However, once he realized that converting these subsidies into company shares could generate substantial profits, he took all the credit for it, as if the previous administration had left him a gold mine that he then claimed to have discovered and exploited.
2. The U.S. government becoming a major shareholder in companies is an unprecedented move
There was a long-standing rule in the U.S. that taxpayers’ money could not be used to buy shares in publicly traded companies. This rule was only temporarily breached during the 2008 financial crisis and the 2020 pandemic. After the crises, such purchases were quickly sold to avoid accusations of state capitalism.
Trump has changed this policy, stating that if companies want subsidies, they must give shares in return. As a result, the government becomes a shareholder and profits from any increase in the company’s stock price. For example, with the $8.9 billion invested in Intel, the government owns less than 10% of the company’s shares, which are now worth $50 billion—an almost sixfold increase in value, outperforming even the best Wall Street fund managers. This new policy could be used to support industries like chips, AI, and renewable energy. It’s as if all U.S. taxpayers have pooled together a trillion-dollar venture capital fund, with Trump acting as the fund manager. Any profits are credited to his achievements, while any losses are borne by the public.
3. The $100,000 monthly service for “early policy access” is essentially insider trading at a fixed price
Many people don’t realize how absurd Trump’s Truth API service is. For instance, if Trump were to announce a $10 billion subsidy for a certain AI company tomorrow, the company’s stock would likely rise by at least 30%. If someone knew about this information 12 hours in advance and invested a few hundred million dollars, they could make tens of millions that day.
Trump is now selling this privilege for $100,000 per month, essentially allowing wealthy individuals to profit from the president’s decisions. In normal circumstances, using insider information to buy stocks would be illegal and punishable by law. However, with the president selling this service openly, it’s like telling the wealthy, “Pay me, and I’ll help you profit from the U.S. stock market.” No wonder U.S. senators are urging the SEC to investigate him. If this becomes legal, the U.S. stock market will become a tool for the wealthy to exploit ordinary investors.
4. Behind Trump’s claims are three real motives
His promotion of his financial achievements is not just for fun:
- First, it aims to appease voters. Many Americans criticize the government for wasting taxpayer money, but Trump’s claims show that he is using government funds to make profits, presenting him as a “non-traditional president” capable of managing business effectively, which is more persuasive than any speech.
- Second, it lays the groundwork for future policies. By showcasing a successful investment in Intel, he can justify requesting more funding for other industries, reducing opposition since people assume he will definitely make money.
- Third, it promotes his social media platform. Major investors and Wall Street institutions would all want early access to Trump’s policy information. By claiming to make large profits from stock trading, he is emphasizing the value of his platform’s content and encouraging people to subscribe to his paid service, thus expanding his business.
5. The implications of these actions are more significant than expected
- Global tech competition will intensify as the U.S. government, with its vast funds, becomes a backer for leading tech companies, giving American companies a significant advantage over their international rivals.
- The U.S. stock market will increasingly become a “policy-driven” market, where investors focus on Trump’s social media updates rather than financial reports and fundamentals.
- If the issue of insider trading is not addressed, the centuries-old principles of fairness in the U.S. capital market will be undermined, turning the so-called “free market” into a joke.