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Donald Trump and the
Re Valuation of currencies (RV).
Trump announces a new External Revenue Service to collect foreign money & XRP as a Strategic Reserve.
Yes, this is the opposite of the Internal Revenue Service that we call the IRS. The External Revenue Service is to collect money from foreign countries looking to do business with the United States.
An external Revenue Service, meaning a tax authority operating across multiple countries, could and will significantly impact foreign currency exchange rates by introducing greater transparency and accountability in international transactions.
Fam this could definitely impact the values of foreign currencies, foreign currency exchanges.
Let me explain why.
Think about all these countries that the United States does trade with. All these countries, fam, just think about the dinar, the dong, think about countries like Iraq, Vietnam, Venezuela, Russia, China, or any other country.
See, those countries will be taxed when they do trade with the United States.
They will be taxed when they look to import goods and services into the United States via trade, which means they'll have to pay more, right?
So if they have to pay more to do business with the US, there has to be an equilibrium, there has to be a leveling of the playing field.
Their currency values will be affected with the potential of their currency rates going up because they'll be paying more with their currency to do business with the United States.
This is part of the process of leveling the playing field throughout the world with currencies.
Some of you may think, "Oh my God, Trump is going to tax these countries, that's a bad thing for them and a good thing for us."
Actually, it's a good thing for anyone who holds the currency of those countries that do trade with us as well.
It will affect the values of those currencies.
Key ways an External Revenue Service will influence exchange rates includes:
-increased capital flows, meaning if businesses are more confident about the transparency of international tax reporting, they might be more likely to invest in those countries that the United States will tax, influencing the demand for those currencies of those countries.
Remember, the value of a currency is affected through supply and demand, so with those countries being taxed by the United States, more investors will invest in those currencies, therefore affecting the exchange rates of the currencies of those countries.
It also creates a harmonized tax policy; the External Revenue Service promotes consistent tax rules across the countries.
Here's the equilibrium, here's the leveling of the playing field.
It also increases accurate data reporting for cross-border transactions.
What are cross-border transactions?
These are the Exchanges when you have one country like Iraq on one border, Vietnam on another, the exchanges of those currencies are affected. Iraq on one border, the United States on another, the exchange rates of those currencies are affected.
So the External Revenue Service is just another way to help level the playing field, even though it may not appear as such with collecting taxes on countries, more taxes on countries that do business with the United States.
Now, President Donald Trump, just came out and stated that he would like to add XRP as a strategic reserve for the United States.
This is breaking news, fam!
What is a strategic reserve?
It's a stockpile of commodities or an item like oil, food, agricultural products, gold, silver that's held by a government, an organization, or a business to be used in case of an emergency or an unexpected disruption in the supply, allowing them to manage serious supply issues by releasing part of the reserves when needed.
So just think if there is some sort of financial crisis in the United States, the US will be able to, as a country, tap into its reserves, not just gold, not just silver, ( continued below 👇)
https://x.com/argosaki/status/1880377505233924298?s=46
