The ongoing US elections are heating up as the two leading candidates continue to make new revelations. Former US president Donald Trump has once again taken the world by storm, unveiling a new threat to the US dollar that has been eroding its prestige and hindering the currency’s global expansion.
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A New Threat To The US Dollar Per Donald Trump
In one of his earlier conferences, Trump was noted for sharing a new threat that has lately been gnawing at the US dollar. Speaking about it at length, Trump revealed how the current US government’s behavior has been slowly eroding the dollar, as opposed to Bitcoin, which mistakenly gets accused of being the financial system challenging the US dollar.
In addition, Trump had also revealed plans to fire Gary Gensler, the current SEC chief, and appoint a new chairman to smooth financial policies and efforts.
“Bitcoin is not threatening the dollar; the behavior of the current US government is really threatening the dollar. I will fire Gary Gensler and appoint a new SEC Chairman.”
It is to be noted that several de-dollarization initiatives have caught pace lately, where alliances like BRICS and ASEAN have made calls to ditch the US dollar. With the US dollar weaponization in place, the dollar’s integrity has taken a massive toll. With the ballooning US debt metrics in sight, the global phenomenon of finding alternative currency also gained significant momentum.
The development further degraded the prestige of the US dollar. On the other hand, Trump has vowed to protect the US dollar by imposing taxes to keep the currency’s integrity intact. Similarly, Trump has reportedly offered Elon Musk a cabinet role involving budgeting to alleviate pressure on the dollar.
“You think we can rip off this wasted $6.5 trillion Biden budget? Well, I think we can do at least $2 trillion. Yeah, yes, two trillion. At the end of the day, you’re being taxed; you’re being taxed—all government spending is taxation.”
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Massive Tax Cuts and Deficits On Cards If Trump Wins
Elon Musk recently responded to a post on X outlining the repercussions the US economy may face if Trump becomes the next president.
The post streamlined a temporary economic collapse that may destabilize the US economy.
“If Trump succeeds in forcing through mass deportations. Combined with Elon hacking away at the government, firing people, and reducing the deficit. There will be an initial severe overreaction in the economy. This economy propped up with debt (generating asset bubbles) and artificially suppressed wages (as a result of illegal immigration). Markets will tumble. But when the storm passes and everyone realizes we are on sounder footing, There will be a rapid recovery to a healthier, sustainable economy.”
Irrespective of the results, the US economy is up for a huge haul, involving strict yet significant economic changes that may change the nation’s course.
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