1. Introduction: The relevance of current analysis

U.S. economic policy is going through a critical phase. In 2025, the accelerated devaluation of the dollar and the implementation of new regulations such as the GENIUS Act, which regulates the issuance of stablecoins, are shaping a new financial environment with profound implications. At the same time, former president and potential candidate Donald Trump has deployed an aggressive strategy that directly links these dynamics: pressure on the Federal Reserve to lower interest rates, and potential use of stablecoins to finance public spending through debt issuance. This work analyzes the two provided texts, aiming to demonstrate how both tools — the devaluation of the dollar and the GENIUS Act — are strategically articulated in a vision of economic power that redefines the role of monetary and fiscal institutions in the U.S.

2. Analysis of the first text: The devaluation of the dollar as a structural symptom

The first document outlines a historic decline of the dollar in the first six months of 2025: over 10% depreciation, the worst record since 1973. This weakness is not explained by cyclical causes such as interest rates, but by structural factors:

Change in direction of the Federal Reserve: after a phase of monetary tightening (2022-2023), the Fed began lowering rates in 2024, placing them between 4.25% and 4.5%, with expectations of further cuts.

Political pressure from Trump: demands interest rates of 1% and publicly insults Jerome Powell, threatening to replace him before 2026, undermining the institutional independence of the Fed.

Capital flight: a massive outflow of investments from long-term Treasury bonds is recorded, especially amid fears of inflation, uncontrolled deficit, and loss of credibility of the U.S.

Increase in perceived 'country risk': U.S. Credit Default Swaps (CDS) reach 50 basis points, similar to countries like Spain or Italy.

The text makes it clear that the market is punishing the loss of fiscal discipline and the politicization of monetary policy, leading to a crisis of confidence that undermines the traditional status of the dollar as a safe haven asset.

3. Analysis of the second text: The GENIUS Act as a channel for debt and monetary degradation

The second text revolves around a key question: why are central banks accumulating gold in record volumes? The answer is twofold: on one hand, distrust in the future value of the dollar; on the other, anticipation of an unstable or degraded monetary system.

At the same time, the text introduces the GENIUS Act, which establishes a legal framework for federally licensed private institutions to issue stablecoins backed 1:1 by dollars or U.S. public debt. This law does not allow the Federal Reserve or the Treasury to issue these coins, leaving control in the hands of regulated private entities.

According to the analysis of the text:

These stablecoins will function as bridges between global investors and U.S. public debt, facilitating its placement among foreign savers, even from countries with unstable governments.

This represents a new channel for monetizing public spending, highly effective, that Trump would be interested in exploiting to finance massive short-term debt issuances.

Meanwhile, central banks are buying gold as a hedge against this monetary degradation induced by excessive issuance and low credibility.

The text also highlights that Trump would wait for Powell's departure in May to appoint a 'puppet' to facilitate his ultra-low interest rate agenda and unchecked issuance, recalling historical practices such as the founding of the Bank of England to finance wars.

4. Connection between both texts: Coordinated economic strategy

Both documents show that Donald Trump is combining two key forces to design an unprecedented expansive economic policy in the short term:

a) Devaluation of the dollar

Trump pressures the Fed to reduce rates to 1%, which:

Would decrease the cost of debt.

Would incentivize short-term growth.

But it would also fuel inflation and monetary distrust, as reflected in the fall of the dollar and capital flight.

b) GENIUS Act as a financing tool

With the approval of this law, private entities will be able to:

Issue stablecoins backed by public debt.

Facilitate global investors to purchase this debt through digital channels.

This allows Trump to replace the traditional debt placement system with an alternative that maximizes liquidity and reduces institutional resistance.

Summary of the strategy:

Lower rates + use stablecoins = massive issuance of cheap debt distributed globally.

5. How Trump benefits from this scheme

1. Finances unrestricted spending:

By eliminating institutional resistance (Fed) and creating direct channels for debt purchase (stablecoins), he can easily issue debt.

Uses the GENIUS Act to leverage global savings, even from countries that would traditionally not invest in U.S. bonds.

2. Consolidates economic and political power:

Weakens the Fed as a technical counterweight.

Controls financial flows without going through direct monetary supervision.

Creates a growing dependence of global financial markets on digitized American debt.

3. Externalizes risks:

The negative effects (inflation, devaluation, bond collapse) are distributed globally among holders of debt and stablecoins.

6. Main conclusions

Trump articulates a dual financial strategy: political pressure to reduce interest rates + regulated use of stablecoins to monetize debt.

The devaluation of the dollar is not an accident, but a functional consequence of aggressive fiscal and monetary policy.

The GENIUS Act offers a framework that facilitates the massive placement of public debt without the need for direct intervention from the Treasury or the Federal Reserve.

Markets are reacting with distrust, as reflected in capital flight, the fall of the dollar, the increased cost of debt insurance, and the accelerated purchase of gold by central banks.

The strategy recalls historical precedents of institutional manipulation to sustain public spending, with rising risks to macroeconomic stability.

7. Economic and political implications

Economic:

Possible structural increase in inflation.

Fragility of the long-term debt market.

Reconfiguration of the dollar's role as a safe haven asset.

Acceleration of flows towards hard assets (gold, Bitcoin, solid companies).

Policies:

Degradation of the independence of the Fed.

Concentration of economic power in the Executive.

Loss of global confidence in U.S. monetary institutions.

Risk that other powers (such as China) advance towards alternative payment systems backed by gold.

Final conclusion:

Donald Trump is using the dollar's weakness as a tool and not as an obstacle, complementing it with the GENIUS Act to build a new mechanism for global financing, based on stablecoins and public debt. This strategy

a weakens traditional monetary institutions and accelerates the transition to a more digitalized but also more unstable and politicized system.