Is Trump Building a Hedge for the USA? Printing Money to Buy Real Assets as America’s Last Path
By Shayne Heffernan
The United States faces a pivotal moment, wrestling with economic currents that threaten its global standing. President Donald Trump’s recent push to acquire a 10% government stake in chipmaker Intel signals a daring strategy to safeguard national wealth through tangible assets. With inflation pressures, tariff-driven price spikes, and a national debt exceeding $33 trillion, printing money to invest in real assets — corporate equity, infrastructure, technology — emerges as a bold, if contentious, hedge against fiscal erosion. This approach, drawing on the power of the U.S. dollar’s reserve status, aims to anchor wealth in enduring value, but its success hinges on execution amid volatile markets. The implications ripple across equities, bonds, commodities, and cryptocurrencies like Bitcoin, reshaping the financial landscape.
Announced on August 22, 2025, the Intel deal, tied to the 2022 CHIPS Act, marks a shift toward state-driven investment. Commerce Secretary Howard Lutnick’s comments suggest broader ambitions, eyeing stakes in chipmakers like Taiwan Semiconductor, Samsung, and Micron. This strategy seeks to secure critical industries — semiconductors underpin national security and technological dominance — while countering reliance on foreign supply chains. By printing money to fund these acquisitions, the government aims to preserve wealth in assets immune to currency devaluation, unlike cash reserves vulnerable to inflation. This mirrors sovereign wealth funds in nations like Norway, which invest resource revenues to hedge against volatility, but adapts the model to America’s unique ability to create dollars at will.
Economic realities fuel this gamble. Inflation, running at 2.7-3% in mid-2025, exceeds the Federal Reserve’s 2% target, driven partly by tariffs that bolster domestic industries but raise costs. The national debt burdens the budget, with interest payments crowding out investments. Printing money risks further inflation, yet channeling funds into real assets like Intel stock or infrastructure offers a hedge. These assets retain intrinsic value, potentially yielding dividends or capital gains to offset fiscal strain. The strategy assumes the government can manage stakes efficiently, a challenge given bureaucratic complexities and risks of political interference.
The likelihood of this approach expanding depends on its initial success. The Intel deal, if executed well, could pave the way for further investments, with a 70-80% chance of additional stakes in tech or energy firms by 2026, based on market sentiment and policy signals. However, legal and political hurdles loom; the CHIPS Act wasn’t designed for equity stakes, inviting shareholder lawsuits or accusations of market distortion. Inflation could spike to 4% by 2026 if money printing accelerates, per Congressional Budget Office projections, threatening the strategy’s viability.
Equities stand to gain from government investment. The Intel announcement boosted its stock, signaling confidence in state-backed firms. Technology and manufacturing sectors could see 5-10% gains in indices like the S&P 500 if similar deals follow, as lower borrowing costs from asset-backed revenue spur growth. Small-cap firms, reliant on affordable capital, may rally, drawing investor interest. Yet, risks of volatility persist; if state involvement skews corporate priorities toward politics, innovation could falter, triggering sell-offs. Bond markets face pressure, as increased money printing may push Treasury yields higher, with the 10-year note nearing 4%. This challenges fixed-income investors, though corporate bonds could benefit from tighter spreads as default risks ease.
Commodities present a mixed outlook. Gold, a hedge against dollar weakening, may climb as investors seek safety, while industrial metals like copper could gain from infrastructure investments. Oil prices risk declining if money printing signals economic slowdown, reducing demand. Emerging markets stand to benefit, with stronger currencies boosting export competitiveness against a softer dollar. Bitcoin, as a risk asset, could surge in a liquidity-driven environment, attracting institutional and retail interest. However, volatility looms; inflation fears or regulatory tightening could spark corrections, reflecting Bitcoin’s sensitivity to macro shifts.
The risks are substantial. Mismanaged money printing could accelerate inflation, eroding consumer purchasing power and destabilizing markets. Government stakes in private firms risk inefficiencies, as historical nationalizations demonstrate, potentially stifling innovation. Legal challenges could derail the strategy, with shareholders contesting government overreach. Market confidence hinges on transparent execution; political favoritism could trigger 5-7% equity pullbacks. Yet, the alternative — inaction — carries graver consequences. With global rivals like China pouring funds into technology, the U.S. risks losing ground without bold moves.
Success demands disciplined execution. Selecting high-value assets — semiconductors, energy, infrastructure — ensures long-term returns. Avoiding political interference preserves corporate agility. Transparency in reserve management and investment decisions maintains market trust. The Intel deal’s outcome will set the tone; if profitable, it could expand to a diversified portfolio, generating revenue to ease fiscal pressures. Saint Francis’s words, “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible,” capture the strategy’s potential: a pragmatic step toward securing America’s future. Investors should position for gains in technology and infrastructure, while hedging against yield spikes and commodity volatility. As Trump’s vision unfolds, it tests whether printing money to buy real assets can fortify the nation against an uncertain economic horizon.
