Make The Great Depression Great Again!
Well, imagine this: Donald Trump starts to implement his election program and launches a new wave of protectionism. Of all the loud promises, there is one quite interesting — to raise tariffs to the heavens, for example, 60% on goods from China and 10-20% on everything imported from Europe and other "non-American" places. It seems like a good plan: let's just shut down the domestic market for foreign products, so American producers can rub their hands in delight, and all of America switches to local goods. But how will all this turn out for ordinary buyers, the economy, and even cryptocurrency?
First Call: High Prices and Total Deficit
What does globalization do? It allows goods to be produced in countries where it is most profitable. America and Europe design iPhones, but they are assembled, for example, in China, because it's cheaper. Imagine that now any product with an eastern "Made in" tag has a 60% tax added. The price, of course, will soar to the heavens.
The scenario is simple: imagine you wanted to buy a new smartphone, but its price has nearly doubled, and for your favorite pair of sneakers, you now pay as much as for your first car. In the USA, all goods will start to rise in price — from household electronics to clothing and even everyday food. As a result, the purchasing power of Americans is rapidly decreasing, and the good old product deficit begins... ta-da!
Second Wave: American Producers Can't Cope
Okay, let's assume that American producers really pick up the baton. But here's the catch — the local market cannot cope with such enormous demand. Manufacturing capacities in the USA have long been oriented towards global supply chains, and they simply won't be able to adapt that quickly. Closed factories, inaccessible materials, and technologies from China and Europe will create a 😏 "bottleneck" effect, where local companies will literally be torn apart trying to fill the gap.
The result? Huge delays, endless queues, and new memes about Americans hoarding scarce goods.
Stage Three: An Economic Crisis, American Style 🤠
This is the moment when increased tariffs and supply chain disruptions cause Americans to spend more and receive less. The standard of living falls, discontent grows, and the economy loses stability. The domino effect occurs: job cuts, GDP decline, and possibly a new recession, or even a depression. 😢
But what about crypto? 🥹
We already know that crypto often reacts to global economic crises. When traditional markets are in turmoil, investors seek safe assets — that's why Bitcoin is called "digital gold". Let's assume a crisis begins: stocks fall, inflation rises. People will increasingly turn to cryptocurrencies in search of an alternative. The result? Do you think increased demand and rising prices for Bitcoin and other popular cryptocurrencies??
But it's not that simple. When America imposes high tariffs, other countries may respond in kind, creating global economic frictions. For cryptocurrencies, this means that international restrictions and currency crises can hinder stable trading and liquidity. For example, if access to the dollar is restricted, buying crypto in countries with weaker currencies will become more complicated. Against the backdrop of these events, the crypto market will become even more volatile.
Conclusion: How to Create Global Chaos Out of Thin Air
Trump aims to protect the American manufacturer and bring jobs back to the USA, but the price will be an economic slowdown, high inflation, and total deficit. Crypto, in turn, will become a temporary refuge for those who have lost faith in the dollar, but it will be unstable due to international contradictions and liquidity challenges.
So if you think everything is stable with cryptocurrency, prepare for real "American roller coasters"!