Former US President Donald Trump made a new move by promoting Bitcoin sneakers on social media. Meanwhile, macro guru Luke Gromen says the winner of the US presidential election in November could do something to effectively rein in rising inflation rates.
First steak from Donald Trump, now Bitcoin sneakers!
Former US President Donald Trump took to social media on Wednesday to promote his limited edition Bitcoin-themed sneakers, shortly after the Republican candidate in this year’s presidential election spoke on Bitcoin 2024. Trump wrote in a Truth Social post, “I spoke at the Bitcoin Conference in Nashville, Tennessee on Saturday. Get your Bitcoin Sneakers now. They’re Limited Edition, each one is numbered and now you can pay with BTC or your favorite Crypto.”
As you follow from Kriptokoin.com, last Saturday, in his keynote speech at the Bitcoin 2024 conference in Nashville, Trump promised to fire SEC chairman Gary Gensler if elected in November and to create a “strategic BTC reserve” by stopping the US from selling BTC assets. In addition to accepting political donations made with crypto, including BTC, Trump also drew attention with the sale of NFT collectibles celebrating his likeness.
“The next US President can fight inflation using BTC!”
In a new interview posted on the What Bitcoin Did YouTube channel, podcaster Peter McCormack asked Luke Gromen what the next US president could do to strengthen the dollar and reverse the trajectory of “massive inflation.” Gromen says one way to fight inflation is to offer low-yielding long-term Treasury bonds. According to the macro guru, if participants are rewarded with Bitcoin, investors will flock to the offer even if the interest rate is low. In this context, the macro guru explains:
We’re going to lower the yield on 30-year Treasuries, we’re going to issue $5 trillion of 30-year Treasuries at 2.5%, and every one of them will be rewarded with Bitcoin… You can act on a percentage of the face value struck on the day you issue them. There is no credit risk for these securities. There will never be credit risk for these securities. The only risk of holding a long-term Treasury bill or a long-term government bond in any country is the value of the currency. When I do this, I remove all inflation risk.
A 30-year Treasury bond yielding 2.5% shows that interest rates are stable over a long period of time. Gromen explains that big businesses rely on interest rates to determine the cost of capital. If interest rates change from time to time, these businesses will have to adjust their prices to cover the additional cost of borrowing capital. According to the macro expert, the stability of interest rates allows big businesses to plan years in advance, knowing that the cost of capital will not change significantly. He notes that an unchanging interest rate will enable companies to compete and be very productive. Gromen believes that this scenario will eventually lead to stabilization in the prices of goods and services.
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