Why Krasnov's Push For Crypto Is So Dangerous To Our Economy [View all]

[gab13by13]

"The poster child for the even more extreme risks coming down the road is the gigantic push being made now by Donald Trump, his family and a whole phalanx of billionaires, Republican politicians, and some Democrats. They want to place cryptocurrencies and assets at the center of the financial system and make tech capitalists such as Elon Musk and Trump himself the kingpins of the financial system. They also aim to transform tech firms into money and credit creators that will be able to print money — like the Federal Reserve and the banks — but will have virtually none of the regulation. In this way, these tech billionaires and Trump family members will be able to privatize the U.S. dollar and the U.S. financial system with virtually no oversight. The key legislative initiatives here are the so-called GENIUS Act, which was just passed by the Senate, and the CLARITY Act, which is set to go to the House of Representatives."

"Senate passage of the GENIUS Act on June 18, with 18 Democrats voting for it, illustrates the massive spending by cryptocurrency companies and lobbyists, first in primary elections to defeat anti-crypto Democrats, and then in the November election to elect pro-crypto Republicans and Democrats. We can expect them to spend even more in the 2026 election to push out sensible crypto-questioning Democrats."

"Overall, Trump’s reckless policies are plunging the U.S economy into chaos and are negatively impacting global economies. Could they trigger a financial crisis?"

"Yes. These policies, and especially the cryptocurrency push, are very dangerous. And that was a point made implicitly by the Economist article. But there is an important point that is missed here: Even short of a financial crisis, these highly speculative, risky, exploitative, and fraud-ridden financial markets hurt workers, families, and communities on a daily basis. As Juan Montecino and I showed in our article, “Overcharged: The High Cost of High Finance,” this kind of financial system fails to provide the financial services that workers, small businesses, households, and communities need. Yes, there are the multitrillion-dollar costs of financial crises caused by such financial systems, but there is the huge cost of misallocation of human and financial resources in a speculative, wasteful, destructive, financial economy."

"We have to defeat Trumpism, the leading edge of this crony financialized capitalism, as well as the neoliberal Democratic opportunists who support and benefit from these policies."

Gerald Epstein
https://truthout.org/articles/trump-is-setting-the-us-economy-up-for-another-great-financial-crisis/