Bitcoin

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

In a letter to investors published on July 29, Dan Morehead, CEO of Pantera Capital, pointed this out The United States has printed an impressive amount of money to fight the financial crisis caused by the pandemic.

“The United States printed more money in June than in the first two centuries after it was founded”Morehead wrote. “Last month, the United States’ budget deficit ($ 864 billion) was larger than total debt from 1776 to the end of 1979.”

Morehead made it clear that Pantera Capital sees Bitcoin as the solution to the current crisis. He also contrasted the impact of money pressure in recent months on how the amount of money had worked over the centuries:

“With that first trillion [de dólares impresos] We defeated the British imperialists, bought Alaska and the Louisiana purchase, defeated fascism, ended the Great Depression, built the Interstate Highway System and went to the moon. “

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

Morehead cited the resulting inflation as the main reason why “leave paper money and enter Bitcoin”. According to the CEO “No need for inflation adjusted numbers [con Bitcoin] because there is no inflation / hyperinflation “.

Near zero

The gold optimist Peter Schiff is also concerned about the effects of money pressure. He took note of comments from Fed chairman Jerome Powell, who said this week that the Fed was using its “wide range of tools” to respond to the pandemic: printing money, keeping interest rates close to zero , and make stable asset purchases of $ 120 billion per month.

“The United States is facing one of the largest inflation periods in world history.”, said Ship on Twitter. “Any credibility the Fed has left is lost. Federal Reserve banknotes will soon no longer be worth Continental. “. (Continental paper money in the United States was exchanged for government bonds at a specific time at 1% of its nominal value.)

Excessive prices too?

Despite widespread fear of inflation Many experts predict that consumer prices will enter a phase of deflation, and that’s exactly what happened in Australia this week, where ABC News reported that consumer prices in the country actually fell 1.9% in June. It is a record of deflation since the Korean War.

However, Many experts believe that inflation is hidden in asset prices rather than consumer pricesand that the pressure of money has underpinned the stock market recovery amid the pandemic.

Pantera Capital revealed its simple investment strategy to overcome the pandemic::

“Stay with cryptocurrencies for a long time until schools / daycare centers are open. Until then, the economy will not work and the money will be printed continuously. “

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