Strike CEO Jack Mallers says that gold and Bitcoin (BTC) will be useful assets to hold during an imminent reordering of the global financial and geopolitical landscape.
In a new interview with independent journalist David Lin, Mallers says that the US has been running unsustainable trade deficits for far too long and is slowly running out of demand for its debt.
Moving forward, Mallers says global markets will likely witness a realignment and a “trade flow reordering” – one in which scarce and fixed-supply assets like BTC and gold shine.
“The reality is this is not a very sustainable practice. Printing pieces of paper out of thin air in exchange for real goods and services is not a relationship that is to be sustained. It actually was a reaction to a decimating World War, and so what I think we’re living through is the unwind of that.
When you see President Trump say things like ‘we need to fix our deficits, we need to bring back the middle class, we need to bring back the manufacturing class, we need to be able to produce our own stuff, it’s because there is a global trade imbalance happening where China is running a trade surplus of something to the tune of a trllion dollars a year, and the US, given this economic alignment globally, has racked up over $35 trillion worth of debt.
And there are no marginal lenders to the United States anymore, we’re on the brink of a sovereign debt crisis.
And so I think there’s a lot of volatility and a lot of trade flow reordering that we’re living through today, and investors trying to predict when these things are liquidity positive and liquidity negative, how the volatility is going to impact certain structural markets, it’s a very dangerous game to play.
I think investors were probably caught offside for the first three months of Trump’s inauguration because he’s been so pro-business, so pro-growth, so pro-deregulation, that they probably got ahead of their skis. But now we’re starting to really understand how the world needs to realign, the impacts of that, and just the true power that a fixed-supply asset like a gold or a Bitcoin can have in a portfolio.”
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