Deutsch한국어日本語中文EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçePortfolio TrackerSwapCryptocurrenciesPricingIntegrationsNewsEarnBlogNFTWidgetsDeFi Portfolio TrackerOpen API24h ReportPress KitAPI Docs

Trump’s Secret Economic Weapons: Stablecoins and Oil, Says DeVere CEO

2d ago
bullish:

0

bearish:

0

Share

While Donald Trump has consistently come up with bold economic strategies, Nigel Green, CEO of DeVere Group, argues there’s more going on behind the scenes than we realize. Through two unexpected means—stablecoins and cheap oil—Trump is quietly upending the US’s financial future while avoiding a head-on collision with the Federal Reserve(Fed). Trump’s public statements don’t reflect all of what’s happening: he’s slowly changing the game without making loud noises.

Stablecoins: The Digital Power Play

Picture a scenario in which the U.S. dollar is the most viable currency, not only the best one, and do so without any movement from the Fed. That is what Trump envisions through his economic plan to issue yield-generating stablecoins. These digital currencies would maintain the associated value of the U.S. dollar while rewarding the holders through additional more money-generating interest. 

Why is this significant? Because it will create increased demand for U.S. Treasury debt and keep the U.S. debt markets asymptomatic even while the budget deficit is elevated. It will also keep interest rates low—yet again, without any impulses from the Fed and let the markets do the work. Most significantly, it reinforces the dollar’s role as the digital reserve currency of the world. As the DeVere Group CEO states so eloquently, “This is revolutionary.” In other words, while Trump does not control the Federal Reserve and cannot dictate their policies, he is developing his own “system” that will work in his favor.

Oil: The Old-School Inflation Fix

Stablecoins might be Trump’s futuristic financial tool, but when it comes to fighting inflation, he sticks to a tried-and-true method: oil.

Think about it—cheap oil keeps transportation, production, and business costs low. That means lower prices on goods and services, reducing inflation without the Fed needing to step in. Trump knows this and has historically pushed for increased domestic oil production, strong-arming OPEC, and using diplomatic influence to drive prices down. As Green puts it, “Cheap oil fuels everything. It’s inflation control by brute force.”

While the Fed typically fights inflation by adjusting interest rates, Trump’s approach is much more direct: lower energy costs mean lower costs for everyone. It’s a way of keeping the economy in check without relying on central bank intervention.

Sidestepping the Fed’s Playbook

Trump is effectively circumventing the normal instruments of the Fed by employing stablecoins to increase monetary demand and using oil to contain inflation. He does not need to unseat Federal Reserve Chairman Jerome Powell to lessen the power of the Fed—he is making its function less significant. This is not a full-on war against the Fed, but it is to establish a new parallel economic system in which market forces—not central bankers—will hold sway. As Green puts it, “He’s building a parallel system. It’s really quite coherent.” Rather than waiting on the Fed to move, Trump’s spate of tactics allows him to determine the basis for economic policy on his terms.

What This Means for the Future

As the 2024 election cycle approaches, Trump’s economic vision is becoming more evident. Instead of fighting the Fed directly, he’s creating a system that fits around it. Stablecoins encourage global demand for the dollar, and cheap oil will help rein in inflation. Together, they create an economic environment that functions outside of traditional monetary policy. 

This model could change the way financial power is exercised in the U.S. It’s not a return to a centralized economic model dependence but a market-driven strategy that doesn’t require the Fed to ensure continued stability. It is impossible to know if Trump’s system will lead to long-term stability, but what is clear is that he is playing the economic game on his terms, and he is not doing so in a way that can easily be dismissed.

The post Trump’s Secret Economic Weapons: Stablecoins and Oil, Says DeVere CEO appeared first on Coinfomania.

2d ago
bullish:

0

bearish:

0

Share
Manage all your crypto, NFT and DeFi from one place

Securely connect the portfolio you’re using to start.