Many people have been discussing Trump's currency issue recently.
They say he is the president of the United States, why do he still come to issue coins? What about leeks?
Today we take a serious look at why Trump wants to issue coins ?
1. The past and present life of MAGAThings must first start with MAGA
Everyone should Are you familiar with Trump’s campaign slogan MAGA (Make America Great Again)?
But many people may not know that Trump is paying tribute to Reagan:
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Reagan's 1980 presidential campaign slogan was "Let's Make America Great Again"
The United States in 2024 is still relatively similar to the United States in 1980. In the international situation, both are facing a menacing pursuer. Reagan faced the Soviet Union, and Trump faced the Soviet Union.
Reagan and his successor George H.W. Bush spent 12 consecutive years in office to bring down the Soviet Union and achieve the United States' global dominance.
This time MAGA is also planning to use Trump’s 4-year term + Vance’s 8-year term, and also hopes that through these 12 years, it will once again be Shape the United States' leading position.
2. The U.S. debt globalization cycle is overIf you want to know what Trump will do next, you must talk about what problems the United States has encountered.
The core problem in the United States is that there are too many younger brothers, and each one has to reach out to the older brother for money.
This problem began at the end of World War II. At that time, the United States relied on 70% of its gold reserves, the Marshall Plan was implemented, using gold as the backing of the US dollar, and the younger brothers sent a large amount of aid to prevent these younger brothers from joining the Communist Party.
By 1972, the U.S. gold reserves could no longer sustain it. As a result, the U.S. dollar and gold decoupled.
After that, the United States entered the second era of chaos since the 20th century, and the inflation rate easily soared to more than 10%:
Why is it said to be the second era of chaos? The first Great Depression around 1930:
Let’s talk about the chaos of American imperialism Era, really only happens once every 50 years or so.
Every era of chaos requires a great president to stand up and formulate a new strategy, and then this strategy can be maintained for about 50 years.
This 50-year cycle is the Kangbo cycle we mentioned before.
Reagan made two changes:
First, the younger brother still has to be raised, but Instead of using your own gold reserves to support it, you need to borrow money and issue bonds to support it
Secondly, this money is not given in vain. You have to produce goods or provide services for the United States. Come and exchange this money
So the main logic of this era is: distribute American industries to its younger brothers around the world, and then the United States prints money in the form of issuing national bonds to purchase goods and services from its younger brothers around the world.
This has three advantages:
1. If it is given to each brother, it is not free aid, but each brother exchanges goods and services for it, and the United States is not at a loss
2. The money the United States scatters is printed by issuing national bonds, and the repayment belongs to the next generation.This is a very happy thing for contemporary people~
3. As for the United States, the younger brothers will still obediently buy national bonds and scatter the US dollars. It’s come full circle and back again
The world has been running like this for less than 50 years, and the time has come to pay back the money:
If it weren’t for the recent lavish spending, there would have been no problem in maintaining the U.S. debt era for 50 years.
But by 2024, the United States will spend more than a Trillion US dollars, accounting for a quarter of U.S. income, more than military spending and social security spending.
3. MAGA New Era: Increase taxes, sell coinsTrump’s think tank has certainly seen this big problem in front of them. If they continue to support so many young people, they themselves It’s all hard to save
If we don’t deal with it, an era of chaos will appear soon, so they can’t wait to start a new era of MAGA
The so-called essence of Maga is that it no longer has so many younger brothers.
You know, the United States has been raising these little brothers for nearly a hundred years. No wonder the current international situation is unprecedentedly changed in a century.
To put it into practice, it is to reduce the trade deficit. To put it simply, even at home, we must increase revenue and reduce expenditure
1. To reduce expenditures is to reduce imports, and the most effective way is to impose tariffs
2. To increase revenue is to expand exports
But increasing tariffs is actually a double-edged sword. When the United States increases tariffs on other countries, other countries will also increase tariffs on the United States
This time, Trump is about to make a big move on encryption.
ThisThe essence of crypto’s big move is to let American companies sell coins.
Especially if the subsequent coins issued by these American companies are still under the supervision of the CFTC and are considered commodities, then every coin sold to someone outside the United States will For the United States, it is considered an export!
And it is difficult to impose additional tariffs!
It must be said that the Trump team still understands the encryption industry very clearly, and tokens are the ultimate product of most AI projects.
If all the high-tech companies in the United States that tell stories come to issue coins, how much revenue can it bring to the United States every year? And the money doesn’t have to be paid back.
In the past, we put AI and encryption together, and some people always said that our encryption circle was taking advantage of the popularity of AI
The recently appointed encryption czar David O. Sacks in the United States, his full title is "White House AI and Crypto Czar."
Why AI and encryption should be put together is also very meaningful.
The most powerful AI platform in the United States now, ChatGPT’s annual revenue is only 4 billion US dollars, mainly from user subscriptions, each user is 20 US dollars a month , $240 per year.
But if, I mean if.
OpenAI has issued coins. Every time you interact with ChatGPT, you need to consume this coin as a gas fee. How much will you buy?
That's definitely not a $240 charge. Liangzi, I'll charge at least tens of thousands of dollars!
Speaking of which, why does Trump support the CFTC to regulate encryption instead of the SEC?
Because this cryptocurrency is a commodity, then what is sold to foreigners is exported, which can earn US dollars and reduce the trade deficit!
And by selling coins, it is difficult for others to receive tariffs!
How to ensure that American companies maximize their profits from selling coins? It's very simple, just support.
And this move may also be able to save the AI industry that is on the verge of a serious income crisis:
Currently, the world’s major AI unicorn companies are all in the United States:
If these AI giants can issue coins, they will surely attract global investors to take over. The income from selling coins can not only be counted as sales income, but will not dilute the rights and interests of investors of these AI giants, and can also help the United States return to the market. Lots of dollars.
4. Issue coins in person to eliminate worriesCurrently, many technology giants are still worried about issuing coins. After all, the fines imposed by the SEC on the encryption industry are still fresh in our minds.
Trump, who is now the most respected president, personally issues coins. Although FDV currently has 40 billion US dollars, it only attracts only one buying fund. Tens of billions of dollars.
If we want to rely on currency issuance to attract the return of U.S. dollars, it will have to be at least hundreds of billions of dollars.
Therefore, other giants must follow up~