Why does Trump issue currency himself?

Recently, many people have been discussing Trump's currency issuance.

It is said that he is the president of the United States, why does he want to issue currency to cut leeks?

Today, let's take a serious look at why Trump wants to issue currency?

1. The past and present of MAGA

Let's start with MAGA

Everyone should be familiar with Trump's campaign slogan MAGA (Make America Great Again), right?

But many people may not know that Trump is paying tribute to Reagan:

Reagan's slogan for the 1980 presidential campaign was "Let's Make America Great Again"

The United States in 2024 is quite similar to the United States in 1980. In terms of the international situation, both are facing an aggressive pursuer. Reagan faced the Soviet Union, and Trump faced China.

At the beginning, Reagan and his successor, George H.W. Bush, used a 12-year term to drag down the Soviet Union and achieve the United States' dominance in the world.

And this time, MAGA is also planning to use Trump's 4-year term + Vance's 8 years, and also hopes to reshape the United States' leading position again in these 12 years.

2. The end of the US debt globalization cycle

If you want to know what Trump will do next, you must talk about what problems the United States has encountered.

The core problem of the United States is that there are too many younger brothers, and each of them has to ask the big brother for money.

This problem started at the end of World War II. At that time, the United States implemented the Marshall Plan with 70% of the world's gold reserves. The younger brothers used gold as the endorsement of the US dollar to deliver large amounts of aid to prevent these younger brothers from joining the Communist Party.

By 1972, the US gold reserves could no longer hold up, so the dollar and gold were decoupled.

After that, the US entered the second era of chaos since the 20th century, and the inflation rate easily soared to more than 10%:

Why is it called the second era of chaos? The first Great Depression around 1930:

The chaotic era of the United States really happens every 50 years or so.

Every chaotic era requires a great president to stand up and formulate a new strategy, and then this strategy can last for about 50 years.

This 50-year cycle is the Kondratieff cycle we mentioned earlier.

Reagan made two changes:

First, the younger brothers still had to be supported, but not by using one's own gold reserves, but by borrowing money and issuing bonds

Second, the money was not given for free, you had to produce goods or provide services for the United States in exchange for this money

Therefore, the main logic of this era was: distribute the United States' industries to the younger brothers around the world, and then the US government printed money by issuing treasury bonds to purchase goods and services from the younger brothers around the world.

There are three advantages to doing this:

1. It is not free aid given to the younger brothers, but it is exchanged for goods and services by the younger brothers, so the United States is not at a loss

2. The money the United States spends out is printed by issuing treasury bonds, and repaying the money is the business of the next generation. For contemporary people, it is very happy~

3. For the United States, the younger brothers will still buy treasury bonds obediently, and the dollars spent will come back after a circle

The world has been running like this for less than 50 years, and it’s time to repay the money:

If it weren't for the recent extravagant spending, there would have been no problem for the U.S. debt era to last for 50 years.

However, by 2024, the U.S. will spend more than $1 trillion just to repay the interest on its debts, which will account for a quarter of its income and is more than its military and social security spending.

3. The new era of MAGA: raising taxes and selling coins

Trump’s think tank certainly saw the big problem in front of them. If they continue to support so many younger brothers, they will have a hard time protecting themselves

If they don’t deal with it, a chaotic era is about to appear, so they can’t wait to start the new era of MAGA

The essence of the so-called MAGA is to no longer support so many younger brothers.

You know, the United States has supported these younger brothers for nearly a hundred years. No wonder it is said that the current international situation is a change that has not happened in a hundred years.

In terms of policy, it is to reduce the trade deficit. To put it simply, the big brother's family must also increase revenue and reduce expenditure

1. Reducing expenditure means reducing imports, and the most effective way is to impose tariffs

2. Increasing revenue means expanding exports

However, increasing tariffs is actually a double-edged sword. While the United States is raising tariffs on other countries, other countries will also raise tariffs on the United States

This time, Trump is going to use a big encryption trick.

The essence of this encryption trick is to let American companies sell coins.

Especially if the subsequent coins issued by these American companies are still regulated by the CFTC and are considered commodities, then every coin sold to people outside the United States is considered an export for the United States!

And it is difficult for other countries to impose tariffs!

It has to be said that the Trump team has a very clear understanding of the crypto industry. 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 income can they bring to the United States every year? And this money does not have to be paid back.

In the past, we put AI and encryption together, and there were always people who said that our crypto circle was riding on the popularity of AI

The recently appointed crypto czar of the United States, David O. Sacks, has the full title of his position as "White House AI and Crypto Czar".

Why put AI and encryption together, it is also very meaningful.

ChatGPT, the most powerful AI platform in the United States, has an annual revenue of only 4 billion US dollars, mainly from user subscriptions, each user is 20 US dollars a month, 240 US dollars a year.

But if, I mean if.

OpenAI has issued a coin, and each interaction with ChatGPT requires the consumption of this coin as a gas fee. How much will you buy?

That's definitely not 240 dollars. Liangzi, I'm at least tens of thousands of dollars in!

Speaking of this, why does Trump support the CFTC to regulate encryption instead of the SEC?

Because this kind of cryptocurrency, if it is a commodity, then it is exported when sold to foreigners, and it can earn US dollars to reduce the trade deficit!

And by selling coins, it is difficult for other countries to receive tariffs!

So how to ensure that American companies can maximize their profits from selling coins? It's very simple, just support it with policies.

And this move may even save the AI ​​industry, which 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 revenue from selling coins can not only be counted as sales revenue, but will not dilute the rights and interests of investors of these AI giants, but can also help bring back a large amount of US dollars to the United States.

4. Issue coins in person to dispel concerns

Currently, many technology giants are still full of concerns about issuing coins, after all, the previous SEC fines on the encryption industry are still vivid.

Now that Trump, the president, has issued coins in person, although FDV currently has 40 billion US dollars, the actual buying funds attracted are only 10 billion US dollars.

If you want to rely on issuing coins to attract US dollars to flow back, you still have to reach a scale of at least several hundred billion US dollars.

Therefore, other giants must follow up later~