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The Poli-Sci Catalyst Behind Gold’s Epic Rally, Dollar’s Deepening Disaster
The paradox of power for America vis-à-vis the dollar-based financial architecture which grew out o
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I find it interesting that this defection is seemingly occurring through mediums like gold and silver. In an age where technology is evolving on an almost monthly basis, the mechanism for defection is reliant on one of the oldest forms of money in existence. The assumption by crypto advocates has always been that de-dollarization would occur through that electronic medium because it is easily applied to anyone anywhere, given the access. And yet, we are relying on an asset that is difficult to transact in and costly to secure and manage.
This leads me to assume that the lack of trust in crypto is attributable to Trump’s preference for that medium as his enrichment mechanism today. I believe it also boils down to the fact that you can make more of any type of asset out there except for those naturally occurring. You can make more shares, dollars, euros, bitcoins, etc.; but you can’t make more gold.
All of that and the fact that, at the end of the day, most intelligent people know Bitcoin’s just a highly-volatile risk asset — i.e., the furthest thing from a stable haven.
That doesn’t alter the reality: People like me were dead wrong about Bitcoin. It went from nothing to $100,000. Shame on me (and joke’s on me) and everyone else who doubted it.
But Bitcoin proponents shouldn’t delude themselves into believing it’s something that it isn’t. Of course, if you got into it early and held it even 1/10th of the way up, it doesn’t matter what it is — because you’re worth so much fiat you couldn’t spend it in eight lifetimes.
I’m not sure you can make more Bitcoins. Limited supply is built-in to the Bitcoin network.
Every change has side effects. Unintended consequences don’t appear out of nowhere. “Buh ! I didn’t think of that !” But Trump will say at least we are winning.
As an ABD in: poli sci and a BS historian when is the last time the dollar went up under a Republican president? The man is the first one with a very short nickname. And even I was not yet in the business. It is amazing. A sure bet? Almost – yes! Why?
One more question is a strong dollar a good thing? For the US? Is it good for the world? Also what is ‘good;?
So much of what is going on today is over my pay grade. Simplistically, since the US is a net importer, isn’t a weak dollar a net -ve? And wouldn’t a weak dollar be especially a net -ve for consumers and small biz who consume imports but don’t export much, while the +ve inures to large corporates with export and overseas biz?
Its been interesting to watch no one care about the effect on the US consumer – its like a weak dollar is the greatest, we will have no inflation concerns, and consumers losing more and more purchasing power (combined with tariffs on imported goods) is going to be a scenario everyone loves.
Every comment written here said a weak dollar was bad for consumers. But if you were the CEO or the party supported by CEO’s. You love a weak dollar. Exports are easy with a weak dollar and profits are higher too. the dollar was like 105 when Tump came in – it was 76 today. Trump’s boys love it. We consumers lose – so what? Weak dollars mean growth (sort of – often). Reagan and both Bushes used it. why not Trump. I think it’s the best thing he’s got.