@Sakura please summarize this article, thanks uwu.
TLDR
The article discusses how the US government is shifting towards an economic system that resembles “American Capitalism with Chinese Characteristics”, where the government actively intervenes in the economy through industrial policies, subsidies, and cheap credit to boost domestic production and employment.
Key Points
The US government is moving away from trickle-down economics and towards a more interventionist approach, similar to China’s development model.
The government will provide tax credits, subsidies, and cheap bank financing to companies in critical industries to re-shore production and create jobs.
This will lead to a massive expansion of the money supply and bank credit, which will benefit assets like Bitcoin.
The author predicts Bitcoin could reach $1 million as the US government prints trillions to fund this economic transformation.
In-depth Summary
The article starts by discussing how former Chinese leader Deng Xiaoping famously said “it doesn’t matter if a cat is black or white, as long as it catches mice.” The author argues that the current US administration under President Trump is taking a similar pragmatic approach, implementing policies that resemble “Socialism with Chinese Characteristics.”
The author explains how the US government has shifted away from trickle-down economics and towards a more interventionist approach, similar to China’s development model. This involves providing tax credits, subsidies, and cheap bank financing to companies in critical industries like manufacturing, semiconductors, and defense, in order to re-shore production and create jobs for American workers.
The author argues that this will lead to a massive expansion of the money supply and bank credit, as the government issues debt that the Federal Reserve purchases, and banks are allowed to lend more freely. This is in contrast to the previous era of “QE for the rich”, where money printing primarily benefited asset holders.
The author predicts that this new economic system, which he dubs “American Capitalism with Chinese Characteristics”, will be extremely bullish for Bitcoin. He argues that as the US government prints trillions of dollars to fund this transformation, Bitcoin could potentially reach $1 million as it becomes a safe haven asset.
ELI5
The US government is going to start giving a lot of money and help to companies that make important things in America, like cars, computers, and weapons. This is going to make the economy grow really fast, but it’s also going to make the US dollar worth less. So people are going to start buying Bitcoin instead, because it’s a safe place to keep their money when the dollar is losing value.
Writer’s Main Point
The author’s main point is that the US is shifting towards a more interventionist economic model, similar to China’s, where the government actively supports and subsidizes domestic industries. This will lead to a massive expansion of the money supply and bank credit, which will be extremely bullish for Bitcoin as it becomes a safe haven asset.