The conversation centers on economic statecraft under President Trump, particularly regarding the Federal Reserve and potential shifts in the global monetary system. Rabobank's Michael Every suggests Trump's appointment of Kevin Warsh as Fed chair signals a move towards subordinating the Fed to the Treasury for economic statecraft purposes. Every envisions a future where U.S. dollar stablecoins, not CBDCs, become central to U.S. trade and foreign investment, potentially revolutionizing international finance by bypassing traditional banking systems and attracting global capital into U.S. Treasuries. This strategy aims to reindustrialize the U.S. and counter China's economic influence, possibly leading to a stablecoin arms race with competing currency blocks backed by gold. The discussion also touches on the midterm elections and the potential impact of AI on market volatility.
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