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How Donald Trump’s Actions Can Cause a Financial Crisis and Their Impact on Bitcoin

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Donald Trump’s elections have made many Americans fearful about how far their new elected president will go in terms of challenging the very foundation of the American Constitution. When the United States was founded, there was an emphasis on having a balance of power. Currently, many of the legislations that Donald Trump has passed in his first week in office is illegal and has standing to be challenged by many United States courts.

Below is a discussion about Trump’s most controversial policies and their possible implications on both the global financial markets and United States immigration policy:

The “Banned Countries”

Americans have been outraged at Donald Trump’s ban on seven countries from entry to the United States for the next ninety days. The seven countries on the list are: Somalia, Yemen, Sudan, Libya, Syria, Iraq, and Iran. The issue with this ban has been that racial and religious profiling issues have come to the forefront of the United States society that have long been suppressed in the wake of 9/11. Many Americans have an open prejudice towards Muslims, which is why this ban has caused a backlash that even Donald Trump could not imagine. Those Americans that fight for everyone’s right to be a citizen and escape dangers in their home countries stood up for those rights which intensified the reaction.

For those that do want to allow citizens from those seven countries to enter, they have taken to the streets, and for those Americans who support Trump, they are elated at his increased security. What this ban ends up causing is unrest in the United States that is very divided politically and has been for some time.

What people do not realize is that banning these countries does more harm than good because it allows the President to exercise far too much power in the Oval Office than was intended by the Founding Fathers of the United States, while simultaneously dividing Americans substantially on immigration policy. This ban has lost in court, but Trump has already promised to issue a new presidential order in that regard.

Blocking Remittances to Mexico

Another aspect of Trump’s policies that are quite disheartening to see is his treatment towards Mexico. Granted, there are many illegal Mexican immigrants in the United States; however, there is a reason that they are illegal and many times it is due to fear of treatment by police officers in the Southwest.

These families come from Mexico to states like California and are an essential part of California’s workforce because they do the jobs that Americans are too lazy to do themselves. Many politicians from the East Coast do not know the reality of living in the Southwest and how Mexicans are vital to the economy of the United States of America. Instead, they try to limit their immigration status and by doing so, are putting the American workforce at a great disadvantage.

Another aspect of Trump’s policies that are not well planned are his actions to limit remittances to Mexico. What this creates is the potential for a black market to emerge where this capital is being brought to Mexico by other means. An extreme example of what a black market can do to a country can be seen in Venezuela, where now the country has four exchange rates and the black market is one of the most respected ironically. Limiting remittances almost always ends up in a crisis.

The best way to keep the global financial markets in order is to create policies that promote transparency and do not give incentive for dishonesty. In limiting the Mexican’s abilities to send remittances, there has already been a substantial increase in remittances of Mexicans taking precautions that their money can and will get to their family members that need them.

Potential Impact on Bitcoin

Bitcoin has been skyrocketing in the past few months since President Trump was elected. Global uncertainty promotes alternatives investments very well. Although the US Dollar has also gained significantly against other currencies in that period, Bitcoin continues to climb further. It only signifies to veteran traders that “something has to give”; when the market formulates an opinion about Trump and his action, US stocks and Dollars will either skyrocket (while gold and Bitcoin will devalue), or it should go the other way around.

Even very conservative investors are currently looking into the Bitcoin, and together with the demand rise in China and India, Bitcoin has a significant upside.

Final Remarks on the Subject

Donald Trump is no doubt a sensational businessman; however, what he lacks is diplomacy, which is vital to be a successful president. His actions thus far have had good intentions to restore America’s economy to what it was before the global financial crisis and 9/11.

That being said, the methods that he is employing are hardly promoting progress. Instead they are alienating groups of Americans that are already racially profiled within the United States. The potential violent backlash from this is tremendous and needs to be addressed. What Donald Trump has forgotten in his policy making is that the vast majority of Americans are in fact immigrants. Many of our families fought very hard in different dangers during their times to get to the United States and start a new life of opportunity. That is what America stands for and has always stood for.

Donald Trump has to remember this perspective and know that he has to be receptive to groups just as America was to his family many generations ago. This is how the United States is going to come back and that is by being inclusive rather than alienating and exclusive to individuals that come to our country with the respect of merely wanting to live the American Dream.

Source: https://themerkle.com/donald-trumps-actions-impact-on-bitcoin-cryptocurrencies/