Kim Dotcom says the growing international trade wars initiated by the United States will lead to growth in the cryptocurrency markets, and that people should get out of stocks and buy crypto. Economic analysis indicates there is truth to his statement.
As the trade wars begin and retaliation after retaliation will lead to markets crashing I suggest to get out of stocks and to buy crypto. The arrogance of US Empire and the escalating trade wars will drive crypto growth.
— Kim Dotcom (@KimDotcom) June 22, 2018
The escalating international trade war started with President Trump of the United States blaming China for a massive USD 500 billion trade deficit and USD 300 billion intellectual property theft. He imposed USD 50 billion of tariffs on China so far and says he will impose another USD 200 billion of tariffs if China retaliates. China has promised to retaliate by July 2018. The trade war is not just isolated to U.S.-China relations, the European Union has just issued EUR 2.8 billion of tariffs on U.S. goods in response to tariffs placed on European imports into the United States earlier in 2018.
Essentially tariffs are leading to more tariffs, and the resulting mayhem is called a trade war. This does not benefit the economy in any way, it sucks the lifeblood out of the economies of the world. This is money that would’ve profited individuals and corporations that is instead landing in government coffers. This will result in negative pressure on stock prices, and therefore what Kim Dotcom is saying regarding getting out of stocks makes sense.
Cryptocurrency is a good alternative for investment and trading if the stock market is declining. Since January 2018 the United States’ stock market has been going sideways, and this trade war might be enough to push it into a bear market.
Also, decreasing stocks are a harbinger of a worsening economy, which inevitably leads to fiat money printing by Central Banks. If this trade war does cause an economic slowdown it would directly lead to inflation of fiat currencies. Since cryptocurrency can’t be printed at will, Bitcoin and other cryptocurrencies would increase in value relative to fiat during an inflationary episode.
In other tweets, Kim Dotcom says that the richest 1% of the United States and their corporations are responsible for sucking the life out of American families, and punishing the rest of the world for the deficit is arrogant. Specifically, he says President Trump’s tax cuts for the rich is the reason for the massive growth in the current U.S. budget deficit, and now foreign countries are being forced to pay for the tax cut.
Trump is putting tariffs on International imports in an attempt to make up for the income deficit resulting from his tax cuts.
It’s the largest theft in history.
Foreign countries and their citizens are forced to pay for US tax cuts.
But they call me a pirate. LOL
— Kim Dotcom (@KimDotcom) June 22, 2018
Kim Dotcom became world famous for being the founder of Megaupload, which ended up being a popular site for pirated movies. Eventually, the site was shut down and the United States has been trying to extradite him so he can be arrested for propagating copyright infringement. Most of his assets have been seized. It is no surprise that Kim Dotcom dislikes the United States since they are trying to ruin his life. Regardless of his bias, his statements that the escalating trade war will spur cryptocurrency growth are logical.
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