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The US Congress recently verified ‘ A big, beautiful account “Donald Trump’s budget, he appreciated as a return to the Republican economic policy. However, for Peter Schiff, this text is a dramatic turning point. The economist considers this as a destructive mechanism that prepares an inevitable decline in the dollar and unprecedented currency shock.
In short
- Peter Schiff says that a “big, beautiful account” will lead to a cash striker who threatens the stability of the dollar.
- Peter Schiff condemns the increase in taxed inflation taxes, financed money and deficit.
- In the face of this inflation hatch Peter Schiff suggests that Bitcoin can become a strategic reserve in the face of the collapse of the system.
Dollar between tax illusion and cash accident
Presented as a text of taxation of taxes, ” A big, beautiful account In fact, it is an explosion of public expenditure. At a time when the decline in the dollar and obligations is worried about markets, Peter Schiff dismantles this official discourse by emphasizing the perverted effect: the financed debt on increasing expenditure makes tax citizens inflation. Especially because the money injected into the economy does not come from recipes, but from monetary creation, which gives the spiral the loss of the value of the dollar.
Schiff describes this dynamics as an increase in masked taxes, the impact of which spreads over time, but hits all dollar holders. According to him, Trump’s budget logic is based on a monetary leading leak. This account could cause economic collapse and destroy the dollar. In addition, the deficit, which Trump considers to be dedicated to deterioration without restrictions, the federal reserve system will be absorbed through the purchase of public debts.
Thus, this dependence on monetization means a massive liquity injection without creating a true value. Expected result:
- Trust in the cross dollar;
- Foreign creditors relaxed from her;
- Interest rates fly away.
Scenario of uncontrolled devaluation and recession driven by capital flight.
America ” To spend », Toward the dollar inflation hatch
Peter Schiff insists on the absence of a real counterpart in the text of a large, beautiful account. No credible cost reduction is integrated. The cuts planned in Medicaid, postponed after five years, are qualified as hollow promises. This delay shows that political leaders themselves do not believe in their own budget discipline.
They believe that the United States that has decided to ignore the foundations will enter the inflation hatch:
- No more debt;
- No more cash impression;
- Lesser confidence.
The system would only apply the illusion of stability. If this spiral is confirmed, states could turn to bitcoins as an active refuge and initiate a real strategic reserve in the face of the dollar collapse.
Triumphant communication in the face of ignored systemic risk
For their promoters’ A big, beautiful account It is a founding text of a new economic era. The White House emphasizes eight measures intended to revitalize small enterprises, among other things:
- Fiscal simplification;
- Domestic production support;
- Increased deductions for research and development;
- Targeted exceptions.
This story, illustrated by Infographic below, praises the future prosperous for the real economy.
But for Peter Schiff, these advantages mask harmful currency mechanics. The shadow of the budget imbalance sees the promises of growth. The dollar on which all these monetary architectures are not shocked. Schiff often warns: The state often warns: the state will dilute money. On the day the markets listen to him, it can be too late.
” A big, beautiful account It is therefore a reform for growth. But for Peter Schiff, he is revealing collective blindness face to face the boundaries of the US monetary system. The dollar, the pillar of the world economy, is based on faith in the discipline of its transmitter. And this faith, according to Schiff, already Očková. The observation shared by Robert Kiyosaki, who claims that Bitcoin is the future, is a dollar fraud.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.