9.1 C
Manchester
September 24, 2020
Image default
Bitcoin

The US printed more money in a month than in two centuries |

IN letter to investors released on July 29, Pantera Capital CEO Dan Morehead noted that the United States had printed a shockingly large amount of money to fight the pandemic-driven financial crisis.

“The United States printed more money in June than in the first two centuries after its uprising. Last month the US budget deficit – $ 864 billion – was greater than the total debt incurred from 1776 to late 1979.

Morehead wrote.

Morehead explained that Pantera Capital sees Bitcoin as the solution to the current crisis. He also contrasted the effects of printing money in recent months with how an equivalent amount of currency has operated over the centuries:

“With that first trillion [wydrukowanych dolarów] we defeated the British imperialists, we bought Alaska and Louisiana, we defeated fascism, we ended the Great Depression, we built the Interstate Highway System and we went to the moon. “

Morehead cited inflation as the main reason to “switch from paper money to Bitcoin.” According to the CEO, “there is no need for the numbers to be adjusted for inflation in the case of Bitcoin because there is no inflation / hyper-inflation in this type of money.”

The biggest inflation ever

The well-known investor Peter Schiff is also concerned about the effects of printing money. He took note of comments from Federal Reserve Chairman Jerome Powell, who said this week that the Fed is using “a full range of tools” to respond to the pandemic: printing money, keeping interest rates close to zero, and stable asset purchases for $ 120 billion. monthly.

“The United States will soon experience one of the greatest periods of inflation in world history. Any credibility the Fed still has will be lost. The Federal Reserve will soon not be worth continental money (Continental paper money in the United States was once converted into Treasury bonds at 1% of its face value). “

he wrote Schiff on Twitter.

Prices will enter a period of deflation?

Despite widespread concerns about inflation, many experts predict that consumer prices will enter a period of deflation. This is what happened in Australia this week. ABC News reported that consumer prices in this country actually fell by 1.9% in June. This is a deflation record since the Korean War.

Yet many experts believe that inflation is hidden in asset prices, not consumer prices, and that printing money is at the heart of the stock market rally during the pandemic.

Pantera Capital has unveiled its simple investment strategy to recover from the pandemic:

“Stay in cryptocurrencies for a long time until the schools open. Until then, the economy will not function and money will be constantly printed.

Related posts

Major domestic exchanges such as bitFlyer, reason for Bitcoin FX “forgotten new use”

Aparnna Hajirnis

Euronet has limited cash withdrawals from ATMs Blocksats

Aparnna Hajirnis

Hitoshi Matsumoto, whether it still has virtual currency asset management app Bitcoin on iPhone

Aparnna Hajirnis

Leave a Comment