What to know:
- The enigmatic drama of President Donald Trump’s fancied dismissal of Federal Reserve Chairman Jerome Powell threatens to shake the foundation of the almighty USD, nudging Bitcoin onto its throne.
- Meanwhile, in a distant land named Turkey, the tale of President Recep Erdogan’s meddling with the central bank unravels—a tragedy of currency collapse that nudged the people into the embracing arms of Bitcoin and its stablecoin comrades.
It was a peculiar dawn breaking upon this week, wherein the U.S. dollar, proud and boisterous no more, tumbled to depths unseen for three years; Wall Street, that eternal mimic, staggered in its wake. Yet, amidst this tempest of despair, stood Bitcoin—aloft, not bowed—a peculiar sight indeed.
Could this be but a prologue? Perhaps the shifting tides mark a turning: away from the stalwart yet faltering USD, toward assets as wild and untamed as the human spirit itself—Bitcoin and stablecoins, free from the chains of seizure and censorship.
Envision, then, if President Trump were to wield his rumored axe upon Powell—the steward of the Federal Reserve—thus uprooting the bedrock of U.S. finance: the DXY and the stock markets both have already begun their descent in nervous anticipation.
The wisdom, if history may be so bold, whispers warnings from the Ottoman echoes of Turkey. There, the lira, once a respectable player, was shattered not by fate but by Erdogan’s persistent interference—the currency’s slow poison—leaving his subjects to seek refuge in the crypto shadows.
Trump’s Torrid Relationship with the Fed
Trump and Powell have long danced a public waltz of spite and discord. The former has jeered the latter for delays in lowering interest rates even when those rates were but a whisper of today’s heights.
Recently, this discord crescendoed—Trump, frustrated and fiery, seeks Powell’s ousting, a man who dares speak of stagflation while the President clings stubbornly to illusions of deflation. To Powell’s credit, patience remains his virtue, a steady hand amid a brewing storm of economic skirmishes and rising inflation expectations.
On a particularly dramatic Monday, Trump coined Powell a “major loser,” prophesied economic doom without rate cuts, and might as well have drawn caricatures upon the Federal Reserve’s sacred walls.
The Turkish Lesson (With a Side of Tragedy)
In 2019, Erdogan took the reins of the central bank’s fate in his own hands, dismissing its leaders as one might brush off bothersome flies. The lira, reacting with heartbreak, plunged from a modest 5.3 per dollar to a staggering 38—an economic apocalypse in slow motion.
It all began with inflation’s slow creep into double digits by 2017, compelling a desperate hike in repo rates by the central bank—moves ill-timed and ill-received by Erdogan, who wielded decrees as a sword against governors and officials alike, with little regard for stability.
In a twist worthy of satire, Erdogan proclaimed in 2021 that high interest rates favored the rich and cursed the poor—thus the policy of keeping them low, despite inflation galloping towards 40% in 2025. A recipe, one must suppose, for economic farce or tragedy.
This saga serves as a cautionary epistle for Trump, a reminder that meddling with the independence of central banks, especially when inflation looms, breeds not loyalty but dread, eroding faith and sending currencies into chaos.
The dollar might not mimic the lira’s catastrophic collapse, yet a significant erosion only seems the more certain. And with the dollar’s global reign and the U.S. Treasury’s throne as the bedrock of finance, the global markets await with bated breath—or popcorn. 🍿
Should wisdom fail its honest duty, American investors too may embark upon a digital exodus, seeking refuge in Bitcoin and other alternative realms just as their Turkish counterparts once did—perhaps marking the dawn of a new coin-laden order.
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2025-04-22 00:16