Economist and author of The Bitcoin Standard, Saifedean Ammous, said Trump’s decision to reverse the higher tariffs was likely a reaction to rising bond yields, suggesting the administration’s hand was forced.“Trump fought the bond market and the bond market won,” Ammous said in an April 23 X post.“The gambit seemed to work for the first day, and the huge crash in the stock market was presented as a small price to pay for fiscal sustainability.”“But then the bonds began to crash, and it became clear how disastrous the tariffs were, and how wrong it was to expect that deliberately crashing the stock market would boost the bond market,” he added.
Some analysts, including Global Macro Investor founder Raoul Pal, have suggested the tariff maneuvering may only be “posturing” for the US to reach a trade agreement with China.“All of the talk about China buckling under the threat of Trump now sounds hilarious in retrospect, when Trump could not keep his tariffs in place for 2 days,” Ammous said, adding that China “showed absolutely no inclination” to reach out and strike a deal.
Ammous said the US should keep buying BTC until the government holds enough to fully back the dollar supply, ultimately switching to a Bitcoin standard:“Keep buying bitcoin until the value of the bitcoin held by the US government is enough to back the entire US dollar supply, then go on a bitcoin standard where dollars are redeemable for bitcoin, and have the government never spend more than it earns.”Historically, the dollar was backed by gold and redeemable for a fixed amount of the precious metal until 1933, when US President Franklin D.
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Author / Journalist: Cointelegraph by Zoltan Vardai
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