Right now many people don't realize it but there's a war going on. A war of restoring the dominance of the USD which has fallen greatly under the Biden administration by weaponizing the SWIFT fiat system and the USD against Russia and others.

Trump is now moving to try to reclaim dominance and yes it's going to get messy and things are going to wildly start swinging up and down but to be honest with you it's something that needs to happen.

The recent trade war heated up with 25% tariffs on the USA closest neighbors Canada and Mexico and well honestly it got them to finally act on things like helping to stop fentanyl and illegal immigration. You see people will take huge advantage of the USA and this is the same thing in life. If you're too nice people will take advantage of you until you have nothing left to give. So you must stand your ground at times and ask for something back and this ask I don't feel is much at all and should have been in place long ago.

How To Win The Trade War

It's pretty easy to see if you're going to win a trade war or not and that boils down to the GDP and how much is actully imported from that country over exported.

Canadas GDP exports to the USA is 22% of their GDP and Mexico is 35%. And the flip side of that USA to Canada is only 1.5% GDP and 1.2% in Mexico. Showing that the USA can easily absorbed the GDP change between the two and why asking for simple things that should have already been in place before was a easy ask and a easy cave for both of these countries.

Tariffs Are Not Inflation

There's a ton of headlining going around lately about prices going up. But as you can see the minimal factor of that happening between these two countries is so low that you wouldn't even notice it and instead these other countries would feel it a lot more.

Only the government can create inflation and it does that via the FED by printing more money. This is why Bitcoin continues to be a hot topic as it has a set inflation and is even more finite then that of gold and silver where it continues to be found and mined. Bitcoin is almost fully mined out and is a massive hedge against inflation as long as the demand for it remains.

Let this sink in for a moment...

Consumers don't produce it, producers don't produce it, trade unions don't produce it, oil imports don't produce it... what produces it is too much government spending and too much government creation of money and nothing else (FED).

Benefits

Right now two things are happening in the government. Unneeded spending is going out the window as it should. The government has become over bloated with lazy needless work.

You know that funny joke you use to talk about where 100 million dollars was spent on some really stupid test like do monkeys cry or something dumb like that? Well that actully is happen with tax payer money and there's seriously no need for it. There is zero benefit and they are worthless jobs that simply suck money out of your pocket.

With the reduction in spending on needless things such as this and raising tariffs in the right places this will actully allow for an ease of taxing which simply continues to just keep on growing in the USA to outright stupid amounts will result in people getting to keep more of their money they worked for and do the things they want with it. This is how the USA use to run and is honestly what made it great. We have only kept getting further and further away from that and it's been slowly degrading the values of the American citizen.

Triffin Dilemma

In 1960 a Belgian-American economist Robert Triffin figured out the fundamental flaw of being the worlds reserve currency like the USA has been since the 1940s.

In order to stay that reserve currency other countries need a continued increasing supply of it to keep trade flowing (liquidity) but it also needs to run a massive deficit in trade.

Or the flip side protect it's own economic interest and well honestly it needs to be protecting it's own economic interest right now.

Think of it like this.

The USA gives out USD to other countries for their goods and services which then those countries invest back into the USA via stocks, bonds etc. However the money the USA is giving out is higher than what it brings in creating a trade deficit. Over time this slowly erodes and degrades the USD to a point where people start to question its value.

At some point the USA has to stop running a trade deficit and instead start to profit. This profit is what will boost the USA economy and usher in what many call "the golden era".

At some point and we have seen this recently happen as the inflation gets out of control other countries start to question the USD and this was sparked by the weaponization of SWIFT which is how money is transferred from country to country.

This now leads the USA into a decision in which the USA now has to decide if it want's to remain at the top or start losing some of that value and honestly we are currently after losing some of that value to make the dollar weaker so that it can stimulate everything again making it easier to give out those dollars. However with high interest rates still from the FED it's causing more and more money to be parked into the USA Bonds which is actully making the dollar stronger and stronger but has a funny way of actully stifling the economy.

A weaker dollar brings more liquidity and increase values in stocks and yes even Bitcoin. This means you really want to be holding assets over holding dollars in your bank account as the value of these will be eroded.

What do you think happens next?

Posted Using INLEO