The Plunge Protection Team was established after the 1987 stock market crash.  It has been used and abused ever since to “stabilize” markets.  What if it has now been taken to a new level by President Trump and Treasury Sec. Bessent?  Thinking about why it was necessary for President Trump to have a major speech last night to talk about the Iran situation,  (I expected nothing new to be discussed)when everything covered had already been tweeted, tick-tocked, press conferenced, etc. to death, in the days and weeks since the conflict began.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             We all know Trump likes to be the center of attention, and loves to put out numerous releases to move the markets.  Some of his critics suggest he is doing so to allow family members and selected insiders to make billions trading on info before he goes public.  While that is probably occurring as a side effect, I don’t believe that is the main purpose of these incessant “releases.”  I believe it is part of a deliberate plan, whether insane, or brilliant, to make money for the US Treasury to help offset the deficit spending that has the deficit approaching 40 trillion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      The estimated daily value of all vehicles and instruments trading on US market, is believed to be between 3-5 trillion dollars.  If the Treasury PPT knows ahead of time that something is coming out, and loads up using derivatives for leverage, and you are doing this every business day for 250 trading days a year, you are talking about some pretty serious change.  Most markets have direct and or inverse correlations and usually move almost automatically by algos so the PPT can get maximum leverage by shorting one asset class while going long others depending on the situation.                                                                                                                                                                                                                                                                                                                                                                                                                             For example, after leaking early this week about peace talks and a possible ceasefire huge profits were made being long many assets.  After the three day run was losing steam, he gives an unnecessary speech that said basically nothing new, but no announcement on an actual deal and so markets sold off, enhancing the downside momentum that was likely to occur today with end of week profit taking.  Expect either later today or after the markets close for trading over the weekend, something positive and another rip roaring rally could begin on Monday.  It doesn’t really matter, when you have deep pockets, inside info and the boss is making seemingly contradictory moves(ie tariff flipflops etc.) the more wild short term swings, the better to mint money for the Treasury.                                                                                                                                                                                                                                                                                                                                                        Is this what Sec. Bessent meant last year when he was talking about putting the country’s assets to work for the American people?  Adam Smith must be rolling over in his grave.