💯 Macro Economic Scope + Bitcoin 💯

The co-founder of #BitMEX @CryptoHayes just released his latest research. I have summarized his key points below. Let me know if you agree? 👇

🇺🇸 The Real Root of America's Trade Problems

▪️ The US 🇺🇸 trade deficit is balanced by a capital account surplus, funded by foreign investment in US assets.

▪️ Tariffs fail politically because they raise prices for consumers without immediate visible benefits.

▪️ Without uniform global application, tariffs are easily circumvented and can't effectively reduce the deficit.

💰 Capital Controls as the New Weapon

▪️ A 2% annual tax on foreign-held US financial assets could replace income taxes for 90% of Americans.

▪️ Capital controls discourage foreign investment, shifting incentives back to domestic production.

▪️ The concept is gaining traction among economic advisors and has historic precedent in Keynesian models.

🚀 The Coming Exodus of Foreign Capital

▪️ Strengthening of Asian currencies indicates early signs of capital repatriation away from US assets.

▪️ Countries like Taiwan and South Korea are loosening currency controls, reversing longstanding policies.

▪️If the exodus continues, it will depress US stocks, bonds, and real estate, destabilizing financial markets.

🖨️ Monetary Policy Response: More Printing

▪️ To fill the capital gap, the #Fed and Treasury are likely to resume quantitative easing and suppress rates.

▪️ Measures include bond buybacks, mortgage-backed security purchases, and relaxed leverage rules.

▪️ This strategy sacrifices long-term stability for short-term liquidity, inflating assets while weakening the dollar.

#Bitcoin as the Ultimate Safe Haven

▪️ Bitcoin’s stateless, peer-to-peer nature makes it resistant to capital controls and censorship.

▪️ As capital is restricted globally, Bitcoin becomes the most viable store of value and escape hatch.

▪️ A modest capital migration (e.g. 10% of $33T) could push Bitcoin well beyond $1 million in value.

What are your thoughts? Do you agree? I read you. 👇