The worst crisis since World War II and its consequences were not to blame for the Fiat money system, according to the President of the United States Federal Reserve System (Informally known as the fed).
In one TV speech on May 13th Jerome Powell said all the damage was done to the United States. and for the global economy this year, It is the fault of the corona virus, not by governments or central banks.
Powell: “There was no bubble to burst”
“The current crisis is unique in that it is due to the virus and the measures to limit its spread.” Powell summarized.
Inflation was not the problem this time; There was no “bubble to burst” that threatened the economy. The virus is the cause, not the usual culprit.
Powell spoke days later US government debt will surpass the $ 25 billion record for the first time in history and The pressure on the Fed to apply negative interest rates increased.
Your version of events It couldn’t be more different than that of Bitcoin (BTC) and gold lawyers. Those who argue that fiscal irresponsibility has made the economy so vulnerable to the virus in the first place.
Controversial measures to contain it They seem to be handing over the hardest hit people’s money to banks and large corporations better protected. Known as the “Cantillon Effect”, this only reinforced his suspicions.
The purchasing power of the US dollar since the creation of the Federal Reserve System. Source: howmuch.net
“Those who forget the past …”
For Powell, however, it looks like the 2008 financial crisis the “cure” for the current situation It is the continuation of the monetary expansion policy that has shaped the United States since 1971.
How Cointelegraph mentioned several times Bitcoin offers us the final solution of “hard money” (hard money in Spanish) solve the process of currency deterioration.
A limited supply that nobody can manipulate and that leads to a real digital deficiency for the first time in historyis even more visible after halving this week, which cut Bitcoin inflation by 1.8%.