Donald Trump doesn’t like crypto assets, he has said it several times himself. The former US president spoke about this in an interview with the Fox Business Channel “Varney & Co.” where he talked about digital assets on Tuesday.
“I like the currency of the United States,” Trump said to his host Stewart Varney. He added that investing in crypto assets “can be a disaster waiting to happen”.
Fox Business reported that Trump believed that cryptocurrency “is damaging US currency” and that “we should invest in our currency”.
Donald Trump: Crypto or Greenback?
In June of this year, Trump labeled Bitcoin a “fraud” and accused it of suppressing the US dollar. At that time he said:
“The currency of this world should be the dollar. And I don’t think we should have all of the Bitcoins of the world out there. I think they should regulate them very, very high. It takes the edge off of the dollar and the importance of the dollar.”
When Trump mentioned bitcoin and cryptocurrencies this week, he simply said, “This may be fake,” which seems to be his preferred answer for anyone who disagrees.
The US dollar performed poorly over the past year. According to the Wall Street Journal Dollar Index (DXY), it is in the same position as it was this time last year. The index measures the value of the US dollar in about 16 foreign currencies.
The Issue of the Dollar and Inflation
The US dollar is the world’s legal reserve currency, but it is not stable by itself and can also be considered a “potential catastrophe” when various factors are taken into account.
Since the Covid pandemic began in early 2020, the Federal Reserve has been printing trillion dollars in stimulus plans and quantitative easing measures. The more money that goes into the monetary system, the less the value of each dollar is. Coupled with zero interest rates and 5.4% inflation, this doesn’t bode well for Trump’s precious US dollar.
Last month there were reports that the Fed’s balance sheet or assets and liabilities were $8 trillion and will continue to grow. Most of these liabilities are US dollar bills issued by the central bank that is used to purchase $120 billion per month in assets such as bonds and mortgage-backed securities.
The recovery from the pandemic will take many years, maybe decades, so the impending disaster is likely to be triggered by the manipulation of the fiat currency and central bank currency.