The Democrats have been trying to impeach President Trump for the Ukraine phone call and are missing out on an easier opportunity.
President Donald Trump and his administration have been incessantly assuring the masses that a deal China is ‘right around the corner.’ Ever since the U.S.-China trade war began, the director of the National Economic Council, Larry Kudlow, has given several statements to the press claiming the deal is ‘closer than ever’:
In their quest to impeach President Trump, the Democrats have been led astray. They have focused their powers on trying to impeach Trump for the phone call with Ukraine’s president.
But there’s an easier way to impeach President Trump that the Democrats seem to be missing. In my view, Democrats will have an easier time if they try to impeach Trump for securities fraud.
As per the textbook definition, securities fraud is a:
deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws.
The Trump administration’s optimistic claims about the trade war seem to fit the definition of securities fraud perfectly.
The modern-day stock market is dominated by High Frequency Trading (HFT) firms. HFT systems rely on super-fast trade execution and are coded to scan for market headlines and place trades accordingly. Due to their prominence, the markets always react positively to assuring news about the trade war.
The Trump administration has used this HFT loophole to its advantage. A majority of the fake trade news arrives either before the opening bell or when the market is taking a hit. Since volumes are thin in the pre-market trading, asset values are more prone to manipulation and an optimistic outlook can cause the HFT systems to send the market soaring.
In a series of tweets, Twitter user @Hipster_Trader showed how often and how conveniently the Trump administration has used the fake trade news to move the markets.
Even today, markets erased morning losses on the back of trade news optimism.
Many prominent Twitter users have made the same observation about the timing of the trade news. In fact, it has gotten to a point that it has become laughable for a lot of people.
President Trump has grown to love the same stock market that candidate Trump considered a big bubble and he’s doing all he can to pump it higher. Judging by the timing and frequency of trade news, it can’t be labeled a coincidence. And to make matters worse, there’s already suspicion of some insider trading activities.
Taking all things into consideration, it certainly looks like the Democrats will have an easier time trying to impeach President Trump for securities fraud than for a phone call to Ukraine.
Last modified: September 23, 2020 1:23 PM