Bitcoin (BTC) bulls hit the president of the United States, Donald Trump, this week when he urged the Federal Reserve to tax people’s savings.
In a Tweet May 11th Trump put pressure on the Federal Reserve again, which has long indicated that Europe should “keep up” than to Lower rates.
Trump: the US needs a negative interest rate “gift”
The European Union introduced negative interest rates for the first time in 2014.
While other countries get the benefits of negative interest rates, it is the United States that you should also accept the “GIFT”. Big numbers!
With negative interest rates, banks and thus savers essentially have to save money.. Fed President Jerome Powell said he was against its introduction, but last month an ex-officer joined calls to use US rates. negative for the first time in history.
“The US Federal Reserve should fight a rapidly worsening recession and lower interest rates below zero for the first time in history.”said former Federal Reserve Chairman of Minneapolis, Narayana Kocherlakota.
Tax savers, say Bitcoiners, have only gotten worse since the corona virus Due to forced economic shutdowns, governments helped large companies while taking away equity and wealth from smaller players.
Fiat pushes savers
Trump’s words were particularly poignant, arriving on the day Bitcoin “tightened” its money supply and cut inflation to 1.8% in half.
No wonder that Proponents of the cryptocurrency had little time for the president’s demands.
“With the Fed pursuing a controlled Weimar strategy, Bitcoin has just completed its third halving.”, replied Tyler Winklevoss, co-founder of Gemini Exchange.
The gold beetle Peter Schiff, famous for his Bitcoin ratings, was also not impressed.
“”Negative prices are not a gift. They are a transfer of assets from savers to debtors. ” he said Trump on Twitter.
Inflation created to allow negative interest rates will also harm employeesin addition to The overall economy will be less productive and the standard of living will be lower as a result.
Critics reported earlier this week The Federal Reserve was pursuing its plans to enter the Exchange Traded Funds Market (ETF).while the president of Virgin Galactic, Chamath Palihapitiya told CNBC that the dollar is heading for a “massive deflationary spiral”.