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On tariffs: Trump wants to weaken the dollar to make it easier to employ and manufacture in the USA since stronger foreign currencies could then actually afford to buy our products. China won't allow this to happen because they want to continue being the world's factory. When Chinese companies sell products to the USA, the Chinese government purchase the dollars from the Chinese companies by printing and giving them new Yuan. This weekens the Yuan and keeps it below the dollar, so China can continue being the world's Factory. China then takes these surplus dollars and buys gold, and US treasures etc. To counter this, Trump is issuing Tariffs on Chinese products to make it defacto more expensive to buy from China. Then, since Trump can't weaken the dollar relative to the Yuan, he is trying to weaken the dollar against gold and Bitcoin. This means that China can't just dump all their surplus dollars into gold/Bitcoin without paying allot more for it.

Look for extremely high gold and Bitcoin prices if this all plays out.

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Discussion

Joshua O'Reilly 7mo ago

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