Make The Great Depression Great Again!
Well, imagine this: Donald Trump starts implementing his election program and launches a new wave of protectionism. Of all the loud promises, there is one very interesting one - to raise tariffs to the sky, for example, 60% on goods from China and 10-20% on everything brought from Europe and other "non-American" places. It would seem like a good plan: let's go and block the domestic market for foreign products, so that American manufacturers rub their hands with joy, and all of America switches to local goods. But how will all this turn out for ordinary consumers, the economy and even cryptocurrency?
First bell: high prices and total shortages
What does globalization do? It allows goods to be produced in countries where it is most profitable. America and Europe design iPhones, but assemble them, for example, in China, because it is cheaper. Imagine that now a 60% tax is added to any product with the eastern "Made in" label. The price will naturally skyrocket.
The scenario is simple: imagine that you wanted to buy a new smartphone, but its price has almost doubled, and now you pay for your favorite pair of sneakers as if you were paying for your first car. In the US, all goods will start to become more expensive - from consumer electronics to clothing and even food. As a result, the purchasing power of Americans rapidly decreases, and begins... ta-dam! The good old commodity shortage!
Second Wave: US Manufacturers Can't Cope
Okay, let's assume that American manufacturers will indeed pick up the baton. But here's the catch - the local market can't cope with such huge demand. Production capacities in the US have long been oriented towards global supply chains, and they simply won't have time to adapt so quickly. Closed factories, unavailable 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 lines, and new memes about Americans buying up scarce goods.
Stage three: American-style economic crisis 🤠
This is the moment when higher tariffs and supply chain disruptions force Americans to spend more and earn less. Living standards fall, discontent grows, and the economy becomes unstable. A domino effect begins: job losses, a decline in GDP, and perhaps a new recession or even a depression. 😢
What about crypto? 🥹
We already know that crypto often reacts to global economic crises. When traditional markets are in turmoil, investors look for safe havens — that's why Bitcoin is called "digital gold." Let's say a crisis starts: stocks fall, inflation rises. People will increasingly turn to cryptocurrencies in search of an alternative. The result? Do you think there will be increased demand and rising prices for Bitcoin and other popular cryptocurrencies?
But it’s not that simple. When America imposes high tariffs, other countries can respond in kind, creating global economic friction. For cryptocurrencies, this means that international restrictions and currency crises can interfere with stable trading and liquidity. For example, if access to the dollar is restricted, buying crypto from countries with weaker currencies will become more difficult. Against this backdrop, the crypto market will become even more volatile.
Bottom Line: How to Create Global Chaos Out of Nothing
Trump is seeking to protect American manufacturing and bring jobs back to the US, but the price will be a slowing economy, high inflation and total deficits. Crypto, in turn, will become a temporary refuge for those who have lost confidence in the dollar, but will be unstable due to international contradictions and liquidity difficulties.
So if you think everything is stable with cryptocurrency, get ready for a real rollercoaster!
