U.S. debt tops $40 trillion; bitcoin shoots up 24%

[Abiky]

This should not be shocking to anyone. When the USA is making more and more debt, when they are printing more and more, and when they are hated by the world all around, even their "allies" are starting to hate them, it is normal that the USD will also get weaker. In fact, I secretly started to think that they are doing this because they do not want immigration. After all, if you make the USA a horrible shithole, then nobody will want to immigrate there.

At this point, they might be ruining the country to ground for some reason or another. This is why the USA will eventually be a nation that will get worse and worse and worse with time. Or maybe they will get a great president one day, and for 8 years they will get better, and that person could save the nation a bit, but if not, and they elect another idiot, the USA will have basically nothing in the near future, and they will be ruined. I understand trying to stay the biggest power in the world, but if they keep doing this, then they are not going to actually achieve anything.

I seem to remember Trump planning to make the USD weaker to increase domestic production. I mean, the weaker the currency, the cheaper the exports will be. All a plan to make the US the world's next manufacturing hub. Just like China. This has been long overdue in Trump's "America First" agenda. However, things are not turning out as Trump planned them to be due to the ongoing war with Iran. Higher oil prices are making the USD stronger.

Meanwhile, the US national debt continues to rise. I wouldn't expect the debt to get any lower, especially when governments need to continuously borrow money to help satisfy their immediate economic needs. It's like inflation, which is inevitable. At least, Bitcoin's isn't prone to the negative effects of "devaluation". Since it was made as a deflationary currency, prices should go higher in the long term. I'd try to minimize my Fiat exposure, and move all into Bitcoin. You'll thank me later.

[pooya87]

I seem to remember Trump planning to make the USD weaker to increase domestic production. I mean, the weaker the currency, the cheaper the exports will be. All a plan to make the US the world's next manufacturing hub. Just like China.

This plan was not limited to this pedophile POTUS, it has been going on for a while and it wasn't exactly about weakening US dollar. The US regime has been mostly trying (or better say wishing) to convince Chinese to raise the exchange rate of Yuan so that they stop being able to compete. Basically they were hoping for a Hotel Plaza scam 2.0 this time with the Chinese instead of Japanese. But since Chinese haven't been as stupid as the Japanese to shoot their economy in the foot, they have not accepted that scheme.

The tariff war that Biden started and the next one followed was part of that plan. To make it harder for Chinese to sell products, and force production to come back to US. A plan that has only caused high inflation for American consumers and not much else.

[ultrloa]

I seem to remember Trump planning to make the USD weaker to increase domestic production. I mean, the weaker the currency, the cheaper the exports will be. All a plan to make the US the world's next manufacturing hub. Just like China.

This plan was not limited to this pedophile POTUS, it has been going on for a while and it wasn't exactly about weakening US dollar. The US regime has been mostly trying (or better say wishing) to convince Chinese to raise the exchange rate of Yuan so that they stop being able to compete. Basically they were hoping for a Hotel Plaza scam 2.0 this time with the Chinese instead of Japanese. But since Chinese haven't been as stupid as the Japanese to shoot their economy in the foot, they have not accepted that scheme.

The tariff war that Biden started and the next one followed was part of that plan. To make it harder for Chinese to sell products, and force production to come back to US. A plan that has only caused high inflation for American consumers and not much else.

Washington is really trying to do that for many years and try to do those situation you have stated. Hoping that it can possibly affect the export industry of China. But since China refused those planned made by US the counter action they have done is to increase their tariff and use the bring manufacturing home as an excuse.

But in reality what really happens is the price of consumer products continue to rise rather than hitting those target that they mentioned about reviving their industrial sector.

Data clearly states that the tariffs they implement does not fix any problem, but it just hurt their domestic consumers and not those country they are targetting.

Well this is great articles to read about what we have discussed here.

https://cepr.org/publications/policy-insight-149-global-imbalances-redux

https://www.tmgm.com/en-eu/analysis/market-insight/merz-calls-plaza-accord-on-yuan

[snowpega]

...
So it is not wonder after the news of US national debt smashing through the $40,000,000,000,000 ($40 trillion), we are seeing a massive rally in all hard assets and energy markets:
Gold: 5.4%
Silver: 9.5
Bitcoin: 24%
Oil: 6.8%
....

When such an event happens, this leads the nation towards increasing and unstoppable rates of inflation and uncertainty. And at the same time, those who are wise enough hurry to shift their money towards safe assets so that it can fight the increasing rate of inflation again. And we know that fact that whenever inflation rates become high then the currency rate starts to dump, and to recover these damages, investors start to enter the market so that they can stay safe on the safe side of the verge. This is why I personally think that in such kind of events, markets start to pump this way. CMIIW!

Other than this, there are many official statements of Trump in which he is saying we are going to pay our debt and bring it low, haha. But the reality is contrary, right? At this time, under his administration, the US debt has reached a new all-time high, and if things keep moving this way, then I doubt the US will go into default. Well, this is my personal point of view. What do you think about this?

[savetheFORUM]

When such an event happens, this leads the nation towards increasing and unstoppable rates of inflation and uncertainty. And at the same time, those who are wise enough hurry to shift their money towards safe assets so that it can fight the increasing rate of inflation again. And we know that fact that whenever inflation rates become high then the currency rate starts to dump, and to recover these damages, investors start to enter the market so that they can stay safe on the safe side of the verge. This is why I personally think that in such kind of events, markets start to pump this way. CMIIW!

Other than this, there are many official statements of Trump in which he is saying we are going to pay our debt and bring it low, haha. But the reality is contrary, right? At this time, under his administration, the US debt has reached a new all-time high, and if things keep moving this way, then I doubt the US will go into default. Well, this is my personal point of view. What do you think about this?

If you are rich, you stick with bitcoin, gold, stocks and all that; if you are poor, then you use your credit card to buy stuff beforehand, so that you would not have to pay a lot more later on. When the debt is this much, and printing continues, that means the dollar will lose value; that means whatever is X amount today will be X+ tomorrow, so if you buy now, then you will do a better job, but if you buy later, then you are going to end up with trouble. That is why we should be purchasing things now, and not wait for inflation to hit us and buy later when it is more expensive.

This is for the poor people, of course; rich people do not have to worry about buying stuff, even if they do nothing, and even if the value of their money goes down, it would mean that we are going to see things change and they would still be able to buy. However, they still do end up investing their assets into things that would benefit from this inflation and not be hurt by it.

[EarnOnVictor]

I seem to remember Trump planning to make the USD weaker to increase domestic production. I mean, the weaker the currency, the cheaper the exports will be. All a plan to make the US the world's next manufacturing hub. Just like China.

This plan was not limited to this pedophile POTUS, it has been going on for a while and it wasn't exactly about weakening US dollar. The US regime has been mostly trying (or better say wishing) to convince Chinese to raise the exchange rate of Yuan so that they stop being able to compete. Basically they were hoping for a Hotel Plaza scam 2.0 this time with the Chinese instead of Japanese. But since Chinese haven't been as stupid as the Japanese to shoot their economy in the foot, they have not accepted that scheme.

@Abiky, Trump is only deceiving himself; the US can't be a manufacturing hub like China. Do you know why? The power of the USD is both a blessing and a curse for them. Is it their living standards, wages, rent, etc? They will always be a burden for local manufacturers. It started like a play when big companies, especially the wealthiest brands in the US were finding means to produce products cheap and sell them expensive. That shifted focus to China due to their currency value, and it has helped the country. The expensiveness of things in the US will always be their barrier.

@pooya87, The US is in limbo, and not even Trump can help them out now, especially when the world sees them differently; their old politics and grip will be failing. The world now knows the US as backstabber, selfish and an ally that can't be trusted. That is why China should be more careful of their vices and deception. Suddenly, Trump started bromance with Xi Jinping, trying to win China over, but I'm certain Xi Jinping knows how to play the card well. He is scheduled to visit the US next month, where trades, bilateral relations, AI, etc would be discussed. All for the fear of China not keeping them in the dark.

[pooya87]

The power of the USD is both a blessing and a curse for them.

Exactly. If they want to manufacture domestically, they'll need to crash USD exchange rate but if they do that, the world will dump the dollar even faster than they have been doing (ongoing dedollarisation) as well as dumping all the bonds they have been bag-holding.

On top of that, anything they enforce will be against everything they stood for for decades. That is nonsense such as "liberal economy" and "capitalism" for example. Not to mention that all these capitalists don't just have a lot of money, they also have a lot of power and influence. They'll never allow anything to change that would affect their profits...