A day full of paradoxes just added one more.
Moments ago, amid his early evening tweetstorm (which so far is tiny compared to the furious tweeting he unleashed this morning), Trump who earlier in the day conquered the stock market, tweeting “Dow just hit 27,000 for first time EVER!” (once again not realizing that by owning the Fed’s biggest asset bubble in history, he will also own the coming crash), the stock market president decided to shift his focus to currencies, and not just any currencies, but cryptos (and, well, Libra which only pretends to be), saying on twitter that “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air”, seemingly unaware that the value of any currency is based on precisely the very same thing.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Trump went on, explaining that ” Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity”, which coming from a former real estate developer means a lot.
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Picking up where Congress left off its Libracoin hearings with the Fed Chair over the past two days, Trump then decided to slam the latest entrant in the digital (because it isn’t crypto) currency world: “Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability.”
Gradually, the object of Trump’s evening ire emerged: not so much Cryptos, as Facebook’s audacious attempt to become a central bank without a sovereign, when Trump slammed Zuckerberg’s company: “If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.”
…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Trump then concluded by directly contradicting all his recent efforts that have been geared at devaluing the dollar – after all, just today, Goldman, BofA and SocGen all predicted that the US would intervene to devalue the dollar- by imposing the greenback as the “most dominant currency in the world”, which apparently is more important when one is engaged in a pissing match over who has the “biggest” currency, than Trump’s ongoing demands that the Fed cut rates so that said dominant currency can lose much of its value: “We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
We wonder how long it will take for the Trump advisors who wrote the actual tweet, to figure out that if Trump wants a new Plaza Accord – and he does – he should be praising, not slamming both cryptos and Libra…
But… you want a weaker dollar https://t.co/sAVhKpc9uE
— zerohedge (@zerohedge) July 12, 2019
… and that if Trump really wants to cripple China, he should be encouraging the development, distribution and growth of the one mechanism that will allow $30 trillion in Chinese deposits to escape the country’s capital controls firewall, resulting in China’s prompt reserve depletion and financial meltdown.
For those wondering, the price of cryptos following Trump’s tweet is unchanged.
via ZeroHedge News https://ift.tt/32mCoLr Tyler Durden