Why did Trump personally launch the coin?

Recently, many people have been discussing the issue of Trump issuing currency.

They say he is the honorable President of the United States, so why does he still come to issue coins and cut leek for vegetables?

Today, from a serious perspective, let’s take a look at why Trump wants to issue coins?

1. The Past and Present of MAGA

The matter starts 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 in 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 the international situation, both are facing a formidable challenger. Reagan faced the Soviet Union, while Trump faces China.

Previously, Reagan and his successor, George H. W. Bush, used a continuous 12-year term to bring down the Soviet Union and establish the United States as a global hegemon.

And this MAGA, is also calculating to use Trump’s 4-year term + Pence’s 8 years, hoping to reshape America’s leadership position during these 12 years.

2. The Globalization of US Treasury Bonds Comes to an End

To find out what Trump will do next, we must say what problems the United States has encountered.

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

This problem started at the end of World War II, when the United States, with 70% of the world’s gold reserves, implemented the Marshall Plan. They provided significant assistance using the gold-backed US dollar to prevent these countries from joining the Communist camp.

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

Afterwards, the United States entered its second period of disorder since the 20th century, and the inflation rate skyrocketed to more than 10%.

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

If you talk about the chaotic era of the United States, it seems to happen about every 50 years.

Every chaotic era needs a great president to come forward, formulate a new strategy, and then this strategy can last for about 50 years.

This 50-year cycle is the K wave cycle we mentioned earlier.

Reagan made two changes:

First, the younger brother still has to raise, but instead of taking out his own gold reserves, he borrows money and pays debts to raise it

Secondly, this money is not given for free. You have to produce goods or provide services for the United States in exchange for this money.

So the main logic of this era is to divide the industries of the United States among the little brothers around the world, and then the US government prints money in the form of issuing national debt to purchase goods and services from the little brothers around the world.

There are three benefits to doing this:

1. Giving to each little brother is no longer free assistance, but rather something that each little brother has exchanged for goods and services. The US is not at a loss.

2. The money scattered by the United States is printed by the issuance of treasury bonds, and the repayment of the money is the business of the next generation, which is a very happy drop for the current generation~

3. For the United States, the little brothers will still obediently buy treasury bonds, and the dollars that are spent will come back around.

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

If it weren’t for recent extravagant spending, the era of U.S. debt would have been sustainable for 50 years.

But by 2024, the expenditure of just paying the interest on US debt will exceed $1 trillion, accounting for a quarter of US revenue, more than military and social security spending combined.

3. MAGA New Era: Tax Increase, Coin Selling

Trump’s think tank certainly saw the big problem at hand, and it’s hard to keep oneself safe with so many little brothers to continue raising.

If the chaos era is not dealt with, they can’t wait to start the MAGA new era.

The essence of the so-called Maga is no longer to raise so many little brothers.

It should be noted that the United States has fostered these little brothers for nearly a hundred years. No wonder the current international situation is an unprecedented change.

In terms of policy implementation, it means reducing trade deficits. To put it simply, it means that even the elder brother’s family should practice economy and frugality.

1. Throttling is to reduce imports, and the most effective way is to impose tariffs.

2. Open source means expanding exports.

But imposing 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 play a big move on encryption.

The essence of this encryption strategy is to make American companies sell coins.

Especially if these US companies’ coins, if they are still regulated by the CFTC and considered commodities, then selling one coin to someone outside the US would be considered an export for the US!

And it is also difficult for other countries to impose tariffs!

It has to be said that the Trump team has a clear understanding of the encryption industry, and tokens are the ultimate product of most AI projects.

If the major storytelling high-tech companies in the United States issue coins, how much revenue can they bring to the United States each year? And these funds do not need to be repaid.

In the past, we used to associate AI with encryption, and there were always people saying that we in the encryption community were riding on the popularity of AI.

Recently, David O. Sacks, the newly appointed crypto czar in the United States, the full name of his position is “White House AI and crypto czar”.

There is also a deep meaning behind combining AI and encryption.

The most powerful AI platform in the United States now, ChatGPT, only has an annual income of 40 billion US dollars, mainly from user subscriptions, with each user paying 20 US dollars per month and 240 US dollars per year.

But if, I mean if, ha.

OpenAI has launched a new cryptocurrency. Each interaction with ChatGPT requires the use of this coin as gas fees. How much would you buy?

That’s definitely not $240 going in, Liangzi, I’m putting in at least tens of thousands of dollars!

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

Because this kind of cryptocurrency, like a commodity, selling to foreigners is exports, which can earn US dollars and reduce trade deficits!

And by selling coins, it’s also difficult for other countries to receive tariffs!

How to ensure that American companies maximize their coin sales? It’s simple, just provide policy support.

And this move may even save the AI industry from a serious income crisis.

And currently, the world’s major AI unicorn companies are all in the United States:

If these AI giants can issue coins, they will definitely attract global investors to take over. These coin selling revenues can not only be counted as sales revenue, but also will not dilute the equity of these AI giants’ investors, and can also help the United States repatriate a large amount of US dollars.

4. Personally issuing coins, dispelling worries

Many technology giants are still hesitant about issuing coins, after all, the SEC’s penalties on the crypto industry are still fresh in their minds.

Now, as the esteemed President, Trump himself issued a coin. Currently, although FDV has 40 billion US dollars, the actual attracting buying funds are only 10 billion US dollars.

If you want to attract the flow of U.S. dollars by issuing coins, you need to reach a scale of at least several hundred billion U.S. dollars.

So there must be other giants following up behind.