The rising trade deficit and debt in the United States have created an apprehensive atmosphere in the currency markets. Donald Trump who has been a strong advocate of weakening the dollar in order to compete with other countries was evident in a tweet,
China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years
Currency War or manipulation is a methodology in which Central Banks or Federal reserves of a country buy or sells foreign currencies in order to regulate their economy. According to Trump, the strength of the dollar is causing the nation’s trade deficit to increase. Furthermore, the currency of a nation can also be simulated by increasing the inflation rate.
Max Keizer, a financial program broadcaster recently talked about the recent deal between Merill Lynch and the Department of Justice on Tuesday, 25th June 2019 to settle charges of misleading the gold markets. He told the media,
As we’ve covered for years now, the precious metals market is undeniably manipulated by the same people who are printing all the money because they don’t want gold to rise up and attract capital while they try to pump the fake money called the US dollar.
In another recent interview with Ran Neuner, reported on Coingape, Max Keizer also explained how Bitcoin is making had money fashionable again.
Andreas Antonopoulos, an educator, and author of four books on cryptocurrencies recently touched similar topics and explained how cryptocurrencies fit into the mix – like an outcast. According to both Antonopoulos and Keizer, cryptocurrency is currently providing an exit from FIAT currencies.
The falling value of the yuan is a prominent example. The dollar also took a hit this morning due to the rate cut view. Hence, as Bitcoin and cryptocurrency continue to provide and exit from the federal currency it will be blamed for causing the currency war in the first place. Antonopoulos said that it will be expressed as if,
The reason the banks are failing and the reason the economy is on fire is that the exit was offered.
The US Government recently sent an open letter to Facebook to halt its development on the cryptocurrency project citing a similar reason that it will affect the Federal Reserves apart from other things. This is essential because the Libra Association has planed a token backed by a basked to currencies to reduce volatility and not the US Dollar.
Do you think that Central banks will rush to release their stablecoins in the current environment? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com