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Is the Market Up Because Trump Is Doing Extremely Well? And Can He Protect the Status of the American Dollar?

This post was originally published on jpfs.com

While Trump may not be the greatest thing since sliced bread, he certainly shines when compared to the current senile old git who currently holds the title of Leader of the Free World.

We find ourselves living in a world of complete make-believe, and if things worsen, someone might even launch Unicorn futures. I’m sure if such a product were introduced, it would find tremendous success among the inexperienced Millennials and GenZ’ers.

 

Let’s face it; the future seems bright, especially if it’s Orange.

 

Blind optimism currently prevails, and why shouldn’t it?

 

During buoyant periods like these, people are making ample profits, wine bars are thriving, and the Bitcoin enthusiasts are leading the charge in pushing prices higher, squeezing the ETF managers, which is bringing smiles to everyone’s faces.

 

Old souls like myself have largely missed out on the current rallies, and the idea of trading against the trend needs to be shelved until the bulls start showing signs of exhaustion, which doesn’t appear to be happening anytime soon.

 

With Nikki Haley finally stepping down, it appears Trump will have a smooth path against the babbling Biden. Without another rigged election, Trump should easily secure victory over Sleepy Joe. This prospect bodes well not only for the USA but also for the rest of the Western world.

 

However, as much as the markets eagerly anticipate the return of the Orange Man to the White House, it’s not a guaranteed outcome, and there’s a chance it may not materialize. As I mentioned earlier this year, there’s significant pressure on Michelle Obama to enter the race in case Biden steps down for medical reasons. Ms. Obama could give Trump a run for his money and potentially disrupt his ambitions.

 

The potential entry of Michelle Obama into the presidential race and its impact on the markets remain uncertain. However, many major institutions might prefer such a scenario as it could be perceived as a unifying option.

 

In my opinion, whether it’s Trump or Ms. Obama, the next president will struggle to reverse the damage caused by the current administration or halt the decline of the Dollar as the world’s reserve currency.

 

The potential demise of the dollar is the topic I wish to revisit this week.

 

Blockchain and Gold-Backed Currency: A Potential Game-Changer for BRICS Nations

 

As gold and cryptocurrencies reach record highs and while the Dollar is experiencing some pressure, it’s worth re-exploring a future problem that is becoming increasingly closer: the BRICS nations’ challenge against the American Dollar’s dominance.

For many years, the feasibility of a gold-backed BRICS currency has been debated. Many claim that the cultural and political disparities among BRICS members make them unlikely allies. Still, America and Europe’s imposition of a globalist, woke agenda is clearly prompting many nations to seek alternative trading partnerships with other powerful nations who have no interest in fostering or imposing unfamiliar or alien moral standards.

 

I won’t delve further into what I perceive as the erroneous economic and political course adopted by past and present Western leaders; individuals can form their own opinions.

But when it comes to most young people’s opinions, there’s a strong belief in the West that innovation will ultimately solve our numerous challenges.

But are they purposely ignoring how competitors against us could use block-chain technology?

 

Let’s explore a few ideas.

 

The U.S. dollar has long dominated the global economic stage, serving as the primary reserve currency worldwide. However, a decentralized digital currency coupled with gold-backed assets presents a fascinating opportunity for BRICS nations to challenge the Dollar’s global reserve currency status, potentially reshaping economic structures.

 

Blockchain technology offers a distributed ledger system that ensures transparency, security, and immutability of transactions. It obviates the need for a central authority, something many BRIC nations oppose, facilitating peer-to-peer transactions globally. BRICS nations can leverage this technology to establish a decentralized currency system grounded in trust, ensuring efficient and secure global financial transactions.

The dominance of the U.S. dollar as a global reserve currency exposes BRICS nations to vulnerabilities. Changes in U.S. monetary policy, economic fluctuations, and political dynamics significantly influence these nations’ economies. By introducing a gold-backed currency built on the block-chain, BRICS will mitigate financial risks associated with sole dependence on the U.S. dollar.

 

A gold-backed currency offers numerous benefits for BRICS nations. Gold possesses universal appeal and a history of maintaining value across civilizations. By underpinning their currency with gold reserves, BRICS nations can establish credibility and inspire confidence in the stability of their financial systems. Additionally, a gold-backed currency enables BRICS nations to shield themselves from inflationary pressures and exchange rate fluctuations.

 

The immutable nature of block-chain technology ensures a secure and auditable transaction history, addressing concerns related to trust and accountability. Transitioning from the U.S. dollar to a blockchain-based gold-backed currency entails challenges, requiring BRICS nations to establish mutual trust, the alignment of specific economic policies, and some coordination regarding monetary strategies.

 

BRICS nations would need to engage in diplomatic negotiations and forge strategic partnerships with other emerging economies to collectively challenge the Dollar’s dominance, but we are already seeing this. Furthermore, active engagement with the U.N. and other global institutions, such as the International Monetary Fund (IMF) and the World Bank, will help cultivate acceptance and support for the transition.

It goes without saying that the USA will do everything in its power to maintain the status of the Dollar, however, as new members join the BRICS and their global influence grows, it will soon be seen that this group will be large enough to overpower any objections from the USA.

 

Block-chain technology and a gold-backed currency allow BRICS nations to challenge the hegemony of the U.S. dollar as the world’s global reserve currency. Although the path toward a new global reserve currency may be complex, the potential benefits for BRICS nations, emerging economies, and international financial stability make it a compelling endeavour worthy of support from those outside the Western World.

 

I appreciate such an idea is not new. We know both Qaddafi and Saddam Hussein seriously explored the introduction of a Gold Dinar, but at the time, these leaders were lone voices in the wilderness.

BRIC Nations today are far from lone voices. Indeed, they already represent 50% of humanity and are growing in size, power, and influence. Also, the technology was not available then to make such a move successful.

 

Some strongly hoped that Bitcoin could have negated the need for an alternative currency, and Stablecoins such as DollarT or DollarC would help enforce the Dollar’s strength. However, despite the recent success of such Western-friendly products, the long-term demise of the American Dollar, even if Trump returns to the White House, seems inevitable.

 

Such a change in how the world manages its financial transactions would be devastating, especially for the West, probably why many optimists choose not to ignore it.

 

What would happen to dollar-denominated debt? Who would the winners and losers be?

 

My main concern would be for Europe, which is vastly weaker than the USA in almost every regard.

 

Raw materials are not abundant across the E.U., its fiscal structure is not without cracks, and its people remain divided on many cultural issues.

Moreover, as much as its people are informed, the Euro carries very little weight outside Europe compared to many other well-established currencies. The Euro would ultimately suffer just as severely, if not more so than the Dollar, albeit, in the short to medium term, the focus would be on a dollar under attack.

 

Of course, none of this, if any of it, is guaranteed to happen. That said, if or when the BRICS do decide to move forward, blockchain technology could greatly assist a gold-based currency becoming more than just a developing nation’s pipe dream.

The post Is the Market Up Because Trump Is Doing Extremely Well? And Can He Protect the Status of the American Dollar? first appeared on JP Fund Services.

The post Is the Market Up Because Trump Is Doing Extremely Well? And Can He Protect the Status of the American Dollar? appeared first on JP Fund Services.

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