The president wants to print like he has his own bags of bitcoin, and the expected monetary expansion to come is not in sight.

When it rains, it pours. This appears to be true both for weather conditions and for the expansion of the US monetary base. According to a report by the New York Times, President Biden will propose a $ 6 trillion budget on Friday that would take the United States to its highest sustained levels of federal spending since World War II, while running deficits above $ 1.3 trillion over the course of the year. of the next decade. “

Only a year ago the pandemic began and the Federal Reserve was forced to launch a major stimulus to the economy through inflation and quantitative easing. Starting at $ 2 trillion, the stimulus package was supposed to keep the US economy going. Of course, the pandemic was only a catalyst to increase the Fed’s already present inflationary practices.

Inflation is a vile concept, not only robbing ordinary people of value for money, but giving access to a small elite the ability to create value out of thin air. Bitcoin Magazine‘s When more is not better: inflation in the 21st centuryBy Sebastian Bunney, explains in detail how monetary expansion ruins economic growth and potential. And it’s not just runaway inflation in the sense of more money that ruins the system, cuts interest rates, and makes credit cheap leads to long-term debt cycles, as explained by Bitcoin Magazine‘s Dylan Le Clair.

I explain in my own essay, “If you don’t buy Bitcoin, you can’t be rich”, That anyone holding cash right now is exposed to an astronomical amount of risk, because the entirety of their value lies in the confidence that the Federal Reserve will continue to believe in their system. But really, the gig is over. Even elected officials have lost confidence, like the mayor of Miami Francis Suarez who has admitted that the previously proposed $ 1.9 trillion stimulus had prompted him to buy bitcoin. Indeed, when articles are written on the death of the US dollar, and billionaires sound the alarm that monetary policy is not in line with economic conditions, something is wrong at all.

With all of this, bitcoin is poised to win. While this cannot be explicitly stated, previous stimuli have often been seen as drivers of bitcoin’s price hike. And with coinciding with ascending catalysts such as halving, it seems that the economic environment for a healthy currency such as bitcoin to develop is ripe. It remains to be seen whether the $ 6 trillion proposal will be accepted, but it is evident that further inflation is to be expected and should help revitalize the bitcoin bull market we find ourselves in.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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