The world’s central banks are struggling to keep their respective economies alive, and the weapon of choice seems to be making more money.
was born after the last financial crisis. In the meantime, it is getting bigger and is making its status as a finite and unchangeable form of financing and value store stronger than ever.
The Federal Reserve will bring in another $ 2.3 trillion
The U.S. central bank plans to add another $ 2.3 trillion to the US economy as fiscal stimulus measures accelerate and COVID-19 devastates the country. The Federal Reserve is reported to offer up to $ 500 billion in loans to states and municipalities by purchasing local government bonds.
In addition, by expanding an existing corporate loan program, you assume riskier debts. According to usdebtclock.org, government debt is already at a record $ 24.2 trillion, and the United States seems eager to increase it as soon as possible.
Last week, the Fed announced that it would also offer funding to banks that provide loans under a wage control program as another 6.6 million workers filed new unemployment claims.
In the meantime, bitcoin advocates and commentators from the crypto community have praised the virtues of the world’s most popular digital asset as it was created as a hedge against such monetary madness.
A month after cutting Bitcoin in half, the Fed is injecting trillions of dollars into the economy.
Satoshi smiles somewhere.
– Pomp ? (@APompliano) April 11, 2020
Other they were watching that the US central bank It’s not the only one that prints money. The ECB printed $ 1.3 trillion, while in China the PBoC invested $ 455 billion in the economy.
Satoshi alarmed him a decade ago
When Satoshi introduced Bitcoin in 2008, it was a time when economies began to falter after the financial and subprime mortgage crisis triggered by American banks. The following year he said: [Fundación P2P]
“The central bank needs to be trusted not to downgrade the currency, but the history of fiat currencies is full of violations of that trust.”
What is happening now is a massive currency downgrade that could lead to hyperinflation if things continue the same way. Much of South America has already suffered such a fate because its fiat currencies have been devalued to such an extent that new banknotes with more zeros are needed.
The population came to Bitcoin in times of economic turmoil in Latin America, and this could also apply to larger economies if the Fiat flood continues. Bitcoin was born from a banking disaster, and it is clear that banks have not learned from their mistakes, but are destined to repeat them.
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