Name: October Stock Market Crash Explained
Uploaded: 2025-10-14T18:30:46.000Z
Duration: 11 min 56 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

The stock market just witnessed another drop.

It seems like since April of this year, we are witnessing a stock market crash.

Every single month something is happening out there and it leads to a stock market crash.

But then a few days later, the entire market recovers and we are going in this cycle after a cycle.

3% is a lot of money when the total valuation of the market is is $57 trillion.

Even bitcoin reacted and it has fallen by about 10%.

When Bitcoin falls, every other crypto falls.

The entire crypto market depends on bitcoin.

It is the largest cryptocurrency in the world.

Well, Donald Trump has announced that he is imposing a 100% tariff on China.

I thought we are over with tariffs and the two countries have actually came to an agreement.

We are going to have another trade war with China.

After China imposed restrictions on rare earth exports.

United States heavily depends on these rare earth minerals and now China is creating more export restrictions because that will directly impact U.S.

companies that build hardware from Nvidia to Apple to even military technology by companies such as Boeing and Lockheed Martin will directly be affected by these restrictions.

Which is why Donald Trump has announced that another 100% tariff and another trade war with China is not going to hurt.

You see, when two countries, China and the United States, who represent 4, 40% of the global GDP, are in a direct trade war, it impacts everybody.

They no longer represent over half of the global economy.

But when 40% of the global economy is in a direct war with one another, and

I mean economic war, everyone else is going to suffer because the rest of the world, one way or another, are connected to these countries.

And the fact that so many US companies are directly related to China and have most of their production in China, you can see how it impacts the US stock market.

That leads investors to panic, which pushes them to sell their stocks, which is leading to a market crash.

In April of this year, when Everything started on 2 April, when Donald Trump announced a trade war against the rest of the world, China was the biggest loser because the highest tariffs went on China.

In fact, China is the only country that responded to Donald Trump with trench and, and

escalation went higher and higher to the point that by the end of April itself, Donald Trump has announced 145% tariff on China and China responded with 125% on the United States.

China is the only country that aggressively responded Donald Trump and told him this is China.

But if you threaten us with tariffs of 145%, you are going to get the exact same thing in response.

But then the two countries met and they started talking and they took a pause in their trade war.

United States has reduced the tariffs to 30% and China to 10%.

And it looked like a big win for the United States, as if Donald Trump has secured a really great deal for the United States.

They will pay a 30% while the US companies selling their goods in China will just pay a 10%.

And that post was extended every single time, just until a few days ago when China has decided that they will impose more restrictions on rare earth minerals, which is why Donald Trump is announced 100% tariff.

So if you look at this timeline, suddenly you realize that everything that both nations have done since of this year was absolutely useless because we are back to where we started.

We are back to that trade war that started on April 2.

Both countries have leverages against one another and both countries are not shy to use that leverage against each other.

First of all, China's biggest leverage against the United States is the control of rare earth minerals.

Because without these rare earths you can't build cars, you can't build technologies, you can't build computer chips, you can't build F35s, you can't build tanks.

Pretty much nothing can be built without these rare earth minerals.

But what if I told you that these rare earth minerals are not even rare?

They exist pretty much everywhere in the United States, in South America, in Europe, in Africa and the rest of the world.

The problem with these rare earths is that it is very difficult to extract them.

And that business is extremely unprofitable and inefficient.

nobody wants to spend billions of dollars just to extract this rare earth and not make a profit.

At the end of the day, the only reason that it makes sense for China to do that is because the Chinese companies who are extracting the rare earth minerals are state back corporations.

Because when you invest in such a business, it takes about 10, 15 years to break even.

Do you see a single company in the US that wants to extract rare earth minerals when they can go and do technology companies and they can make health hundreds of billions of dollars, why go into unprofitable businesses?

And because the US Economy is not a state driven economy, at least for now.

I mean, it might be slightly, to a certain extent state driven economy, but

mostly it's a free market economy if you compare it to China.

And that's why not a single US Company is ready to take that risk and invest so much money there in extracting rare earth minerals.

And that's why over the last 10 to 15 years, or I would say even 25 years, China has controlled 80 to 90% of the entire market.

Because they control 90% of the market, that allows them to turn that unprofitable industry into a profitable industry, even if their margins are extremely small.

And that's the leverage China has against the United States.

The United States can again invest in the exact same technology, start extracting, build the longest supply chain across the globe and start making the rare earth minerals and extracting them from the ground.

That's going to take years for the US to do that.

And the United States will have to spend unbelievable amounts of money.

But it's not China that is using their leverage against the United States.

In fact, United States had restrictions on China on exporting technology to China for years.

You can't be exporting high technology into China.

Nvidia, even though that it's a privately owned company, has no right to export their advanced chips to China.

There are military technology restrictions.

Such companies such as Boeing and Lockheed Martin cannot export their technologies to China.

So China looks at this deal in such a way that if the United States has the right to restrict a certain exports to China, and

then we as China have the exact same right to limit exports to the United States.

Yes, it might be vital to you these, you might need these rare earth minerals.

But we also look at these advanced computer chips.

But we also look at these advanced military technologies as vital input for us.

So if you put restrictions, we're also going to put restrictions on you.

Now the entire point of this trade war was to fix the trade imbalance between the two countries.

United States buys far more from China than China buys from the United States.

But if you dig into the numbers, suddenly you realize that fixing the trade imbalance between the two countries is nearly impossible.

No matter how much Donald Trump is going to try, he is not going to fix it.

Because the fundamental principles upon which these two economies are based are so different that fixing it makes no sense.

You see The United States mostly exports energy, agricultural products and high tech.

What do you think China should buy from the United States?

Why buy US Energy when you can get the exact same energy at half the price from Russia?

Agricultural products, yes, China buys a lot of agricultural products from the United States, but

You simply cannot buy more than you need.

The United States has imposed restrictions on exporting these technologies to China.

So you can't be saying to China, why aren't you buying these technologies?

Because you do not want to sell them to China.

So why do you want China to buy from the United States?