There are hundred of publications at this point in time, stating that a big chunk of the stimulus money is going to be used by regular joes and janes to buy crypto, and even though I'm not necessarily against this, I can't help but to think that it's definitely going to backfire on the US government.
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Free money!!
The situation is different for everyone, and I'm sure a considerable percentage of people need the money just to cover basic bills, but I suspect this may not be the majority. Why? Well, because there's other provisions as well in place that still protect the common folk from feeling the full blunt of this economic turmoil.
Eviction moratoriums as far as I know are still a thing, and I suspect that if you are behind many months on rent, the $1400 is not going to really solve it all. You likely have other monster problems nipping at your heels.
No such thing tho..
To those among us who don't care much about macro economics, this might not even be a consideration, but I suspect that if you are in crypto, you are probably aware of this issue.
The very nature of FIAT is that it's devaluation promotes spending, and thus moves the economy forward. But, there's a spectrum of "healthy" inflation numbers that we should be following in order to not throw everything off.
All this being said; The necessary pluralism in economics that allows us to run experiments, Is also the main reason why these solutions are incredibly divisive.
Is the economy about to tank?
Nobody can say this with absolute certainty, but it's not too hard to do the math here. You see, the previous administration had an incredible motivation to keep the show going, to try to ensure the reelection of it's leader. But, it's not unreasonable to think that this one might be aiming to operate for one term only.
If there is no need to feed the bubble for the sake of political power, then we should be seeing reality settle in very soon. As a matter of fact, there are some markets that already have began the shift, and you wouldn't know it unless you paid close attention.
To give you a hint, the time to refinance your home and lock in stupid rates has already passed.
Time for Prophecy
Not that I'm betting money here, but If I had some f... you cash in a drawer. I would bet against the energy markets and housing starting this year. We are likely to see a big increase in gas prices before 2021 comes to a close, and when moratoriums end, and they will, the fallout will be incalculable.
All I can say is.... Hedge your bets
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That's why, for me anyway, liquidity is key. When a market tanks is usually a good time to buy, unless it's something that's dying anyway.
no doubt, im trying to do the same.
Hey long time no see, how are you?
I think it could easily backfire as there is no such thing as free anything as you pay for it somehow and most likely in another area through inflation. These guys are just a bunch of idiots as they are doing exactly what Zimbabwe did. I suppose it is not so bad if every country does it as it evens out but still shocking to see happen in the first place.
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hey bud... well, there's one big difference between the US and the rest of the world. When other countries try to outplace the dollar by creating a pegged asset, motivated by the ridiculous money printing machine. The US decides that that country needs democracy and thus ends their plans.
That being said, it doesn't mean it will work every single time. But while the US has the military force to do as they please, they will probably continue to do so.
Sounds about right and they are weakening themselves every time they do this. At some point they will not be the biggest and strongest super power anymore and wonder what happened.
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