Key Tariff Takeaways:

1: The Triffin Dilemma

- The US dollar's reserve currency status creates a trade imbalance: the US must run deficits to supply dollars globally.

- The US benefits from borrowing cheaply but wants to reduce its overvaluation.

- Tariffs serve as a tool to weaken the dollar, similar to the 1985 Plaza Accord.

2: Trump’s Personal Incentives

Trump’s primary goal is to lower the 10-year Treasury yield to boost real estate, which he is personally invested in.

He will pursue this goal aggressively, regardless of economic side effects.

3: Bitcoin as the Ultimate Hedge

- A weaker dollar and lower interest rates will drive capital into Bitcoin, contrary to mainstream belief.

- Inflation and economic distortions will push foreign nations to stimulate their economies, further debasing currencies.

- Unlike in the past, Bitcoin provides a digital escape from monetary manipulation.

Conclusion:

Tariffs are a short-term tool, but the long-term result is a weaker dollar, inflation, and capital flight into Bitcoin.

Both sides of the trade war dynamic will ultimately favor Bitcoin, making its rise inevitable.