{"id":58577,"date":"2025-01-27T09:36:22","date_gmt":"2025-01-27T09:36:22","guid":{"rendered":"https:\/\/omegatv.online\/?p=58577"},"modified":"2025-07-02T07:44:28","modified_gmt":"2025-07-02T07:44:28","slug":"gold-trump-declares-war-on-powell-strong-usd","status":"publish","type":"post","link":"https:\/\/omegatv.online\/en\/gold-trump-declares-war-on-powell-strong-usd\/","title":{"rendered":"Gold: Trump Declares War on Powell, Strong USD"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>by\u00a0VBL<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Gold: Trump Declares War on Powell, Strong USD<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">TL\/DR<\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li><strong>Trump\u2019s Economic Reality<\/strong>: While the plan is ambitious, political constraints and market dynamics suggest compromises are inevitable.<\/li>\n\n\n\n<li><strong>Weak Dollar is Central<\/strong>: If tariffs cannot be implemented, a weaker dollar becomes the primary tool for achieving Trump\u2019s growth agenda.<\/li>\n\n\n\n<li><strong>Market Implications<\/strong>: Investors are already adjusting to this reality, with dollar weakness leading the charge. The USD will weaken, Gold and Silver will continue rallying<\/li>\n<\/ul>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Outlook for Gold, Silver, and the Dollar<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li><strong>Gold and Silver:\u00a0<\/strong>Prices will likely remain influenced by dollar movements. If the dollar weakens further, both metals should see more upside even though their downside ignored USD strength this past year.<\/li>\n\n\n\n<li><strong>The Dollar<\/strong>: The market is already pricing in the challenges Trump faces in implementing his full agenda. A weak dollar *strategy* appears increasingly likely as a fallback to support exports and mitigate political resistance.<\/li>\n<\/ul>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Intro: Trump Declares War on the Fed<\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Shots Fired at the Fed, and the USD <a href=\"https:\/\/t.co\/Vos7VUk2yd\">pic.twitter.com\/Vos7VUk2yd<\/a><\/p>&mdash; VBL\u2019s Ghost (@Sorenthek) <a href=\"https:\/\/twitter.com\/Sorenthek\/status\/1882781019751022632?ref_src=twsrc%5Etfw\">January 24, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Authored by<a href=\"https:\/\/vblgoldfix.substack.com\/\">&nbsp;GoldFix,&nbsp;ZH Edit<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Good morning. In light of Trump&#8217;s statement yesterday, in the attached video, strongly conveying his desire for lower rates and suggesting that Fed Chair Powell will give him those lower rates, this is very timely. War has effectively been declared on the Fed as part of Trump&#8217;s plan to make America great again, fiscally. The simple point is this:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If Trump cannot get his agenda implemented successfully, this creates a dilemma. Even if he does implement it fully and successfully, as he envisions, the U.S. will still need a weaker dollar to make it work. This is all part of exporting, mercantilism, and addressing current account deficits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yesterday&#8217;s comment by Trump on rates and Powell&#8217;s expected compliance reflects a telegraphed attempt to get ahead of the fiscal pushback anticipated as his plan is implemented. When you combine all the factors\u2014 all the moving parts that Trump needs to work\u2014if the country becomes less comfortable with deficit spending, which is a hallmark of what he&#8217;s proposing, then congressmen and senators will not support it. Without additional deficit spending in conjunction with raising tariffs to lower taxes, Trump must have a Plan B to facilitate export growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That Plan B is an overt attempt to weaken the dollar. Trump&#8217;s comments in the video are the first shots fired in a war with the Fed, a conflict that will ebb and flow based on his own policies&#8217; progress. The conversation around these dynamics began filtering into markets right after his inauguration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At that time, the dollar dropped 160 points, then rebounded, but now it&#8217;s back down and below those levels. The moral of the story is this: Besant, his treasury nominee, had made comments before his nomination on what he believes will and will not work under the MAGA framework. His belief is that a weaker dollar now will lead to a stronger dollar later. Conversely, a stronger dollar now will eventually create a weaker dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key to making America great again will necessarily involve lower energy costs, alongside tariffs and tax cuts. This rationale forms the foundation of Goldfix&#8217;s view that a weaker dollar is likely over the next four years. Whether the weakness comes sooner or later, there will be significant dollar depreciation as the U.S. re-engineers its economy to become an exporting nation.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">To Make America Great Again, we can either magically become the lowest cost producer of globally needed finished goods overnight without lowering labor costs or our standard of living in our free factories grown from magic beans \u2026..<br><br>Or we can weaken the dollar.<br>What do you\u2026 <a href=\"https:\/\/t.co\/6iDrnxququ\">pic.twitter.com\/6iDrnxququ<\/a><\/p>&mdash; VBL\u2019s Ghost (@Sorenthek) <a href=\"https:\/\/twitter.com\/Sorenthek\/status\/1881843663204167944?ref_src=twsrc%5Etfw\">January 21, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here is the conversation\u2014 a podcast recorded just two days ago\u2014anticipating these types of events. Frankly, while we appreciate being correct on something, we did not expect Trump to start pressuring Powell so quickly. Enjoy.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Podcast Topics<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Trump\u2019s Three-Pronged Economic Plan<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<ol class=\"wp-block-list\">\n<li><strong>Raise Tariffs<\/strong>: Generate revenue and support domestic manufacturing.<\/li>\n\n\n\n<li><strong>Lower Taxes<\/strong>: Stimulate growth and increase disposable income.<\/li>\n\n\n\n<li><strong>Increase Spending<\/strong>: Invest heavily in rebuilding U.S. manufacturing and infrastructure.<\/li>\n<\/ol>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Challenges to Implementation<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Republican majority may resist excessive deficit spending ahead of midterms.<\/li>\n\n\n\n<li>Democrats are likely to block tariff increases, creating political roadblocks.<\/li>\n\n\n\n<li>Even a unified mandate becomes a \u201clame duck\u201d by midterms, limiting Trump\u2019s ability to push his full agenda.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Market Implications<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strong Dollar Expectations: Early market optimism assumed tariffs would strengthen the dollar. However:<\/li>\n\n\n\n<li>Shift to a Weak Dollar Policy:<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Bessent\u2019s Vision for Trump 2.0<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Economic Boom Goals<\/strong>: Bessent outlined a vision reminiscent of the 1920s Roaring Twenties, focused on growth and productivity. However:<\/li>\n\n\n\n<li>A weak dollar is crucial to this strategy, as it supports exports and offsets deficits from lower taxes and higher spending.<\/li>\n\n\n\n<li>Long-term productivity gains could stabilize inflation and strengthen the dollar by the end of Trump\u2019s term.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u2022&nbsp;<strong>Key Risk<\/strong>: Rising long-term interest rates could undermine the plan.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Weak Dollar Strategy: Why It Matters<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Export Competitiveness:<\/li>\n\n\n\n<li>Tariffs vs. Weak Dollar:<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>Continues\u00a0<\/strong><a href=\"https:\/\/vblgoldfix.substack.com\/\">here<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by\u00a0VBL Gold: Trump Declares War on Powell, Strong USD TL\/DR Outlook for Gold, Silver, and the Dollar Intro: Trump Declares&hellip;<\/p>\n","protected":false},"author":2,"featured_media":58578,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,50,54],"tags":[],"class_list":["post-58577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finances","category-international","category-politics"],"_links":{"self":[{"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/posts\/58577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/comments?post=58577"}],"version-history":[{"count":1,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/posts\/58577\/revisions"}],"predecessor-version":[{"id":58579,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/posts\/58577\/revisions\/58579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/media\/58578"}],"wp:attachment":[{"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/media?parent=58577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/categories?post=58577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omegatv.online\/en\/wp-json\/wp\/v2\/tags?post=58577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}