It seems our American President, a man not known for his austerity, has decided upon a rather… generous gesture. A “tariff dividend,” he calls it. At least $2,000 per citizen, excluding, naturally, those who already possess the good fortune of a comfortable income.
One finds oneself wondering if this isn’t merely a masterful display of political theatre, a gilded distraction from the more mundane realities of governance. Still, as the money – or rather, the promise of money – begins to circulate, whispers abound that the crypto market, that delightfully volatile arena, may be about to experience a most stimulating upturn.
What is Trump’s Tariff Dividend?
Tariffs, it appears, have been something of a double-edged sword for the crypto enthusiasts. Each pronouncement of increased duties has been met with a predictable flurry of selling. And yet, the President, in a pronouncement broadcast via his preferred platform (one trusts it is suitably opulent), defends his policies with characteristic flair.
“People that are against Tariffs are FOOLS! We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price. 401k’s are Highest EVER,” Trump wrote.
Ah, yes. The unassailable logic of unchecked enthusiasm. He proceeds, naturally, to unveil his “dividend” – a bounty bestowed upon the deserving masses.
“We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. A dividend of at least $2,000 a person (not including high income people!) will be paid to everyone,” the President added.
A veritable cornucopia of cash! The Kobeissi Letter, a publication of undeniable perspicacity, suggests that some 85% of American adults might qualify, resulting in a disbursement of over $400 billion. A sum that could, one imagines, purchase a rather significant collection of… well, almost anything.
“Currently, there are ~220 million US adults who fit these income criteria. The top ~15% of earners would be excluded as ‘high income.’ 220 million x $2,000 = ~$440 BILLION handed out. And, the check could be larger than $2,000,” the post read.
One recalls the stimulus checks of a previous era, and how they so readily found their way into the hands of eager consumers. Will the crypto market be the beneficiary of this newfound liquidity? The prognosticators, naturally, are optimistic.
Impact on the Crypto Market
Cryptocurrency commentator CryptosRus speaks of a “massive liquidity surge,” a phrase that conjures images of overflowing coffers. Others share this sentiment, suggesting that this unexpected windfall could provide a much-needed boost to the markets in general, and to those delightfully unstable crypto assets in particular.
“Tariff revenue funds the $2,000 stimulus checks – not printed money. Tariffs bring production back -> government collects -> checks get paid. And he’s talking $20 trillion+ flowing back into the US economy. That’s real capital and not theory,” he posted.
Indeed, one might draw parallels to the heady days of COVID-19, when Bitcoin soared to dizzying heights while its digital brethren enjoyed similarly exuberant gains. Could history repeat itself? Money Ape certainly seems to think so, predicting a rally of epic proportions.
“If even 20% flows into crypto that is $125 billion of fresh liquidity ready to explode. QE coming. ETFs approved. Pro crypto government in control. This is how the biggest bull run begins,” the analyst added.
The President prepares to unleash a liquidity explosion in the form of $2,000 tariff dividends at the same time the crypto industry veterans are predicting a multi-year bear market.
Let’s see who wins the battle.
– Anthony Pompliano 🌪 (@APompliano) November 9, 2025
Why Trump’s Tariff Dividend Could Backfire
But, one must always temper enthusiasm with a dash of skepticism. Our Treasury Secretary, a man of ostensibly sounder judgment, suggests that this “dividend” may not take the form of actual cash, but rather, rather less demonstrative tax reductions.
“The $2,000 dividend could come in lots of forms, in lots of ways. It could be just the tax decreases that we are seeing on the president’s agenda – no tax on tips, no tax on overtime, no tax on Social Security – deductibility on auto loans,” Bessent said.
A rather less exciting prospect, wouldn’t you agree? And even if the President does proceed with direct payments, The Kobeissi Letter cautions against undue optimism, pointing out the ever-present threat of inflation. They remind us that past stimuli have been accompanied by a rather alarming spike in prices.
“Trump also states that after this payment, tariff revenue will go toward paying US debt….Tariff revenue is barely accounting for ~10% of our monthly deficits,” the post highlighted.
Furthermore, the Federal Reserve appears to be taking a rather more cautious approach to monetary policy. Their recent interest rate cuts, coupled with the prospect of further stimulus, could, one fears, reignite the flames of inflation.
“Stimulus payments will add fuel to the fire,” The Kobeissi Letter remarked.
Thus, we await, with a mixture of anticipation and amusement, the official details of this policy. Whether it will prove to be a genuine economic catalyst, or merely another instance of political grandstanding, remains to be seen. Only time, that most merciless of judges, will tell. One does hope, however, that the resulting spectacle proves at least mildly diverting. 🎭
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2025-11-10 11:47