The International Monetary Fund (IMF) in its endless eagerness to stay afloat by indebting the world in fiat money recommends everyone to spend and spend and spend. The head of this organization, Kristalina Georgieva, recently stated the following: "In terms of policies for right now, very unusual for the IMF, I already said in March 'please spend. Spend what you can and then spend some more (...) I advocated and continue to advocate accommodative monetary policies and fiscal policies that will protect the economy from a collapse at a time when we are purposely limiting both production and consumption."
The IMF's recommendation makes it clear that it intends to remain the institution responsible for maintaining the depleted fiat model in the world, either under a scheme led by the U.S. dollar, Euros, Yuan, a basket of currencies or through some digital currency of its own. The idea of the institution is to urge countries to insist on quantitative easing (QE), that is, the continuous issuance of money from central banks to private banks and of course, to maintain the infinite indebtedness of people, nations and institutions until the model is exhausted, dies and is replaced by another that allows them to continue the same scheme of domination worthy of mafiosi.
It seems that for these anachronistic institutions that emerged from World War II, there is no other formula to get out of a crisis than printing more money and taking on debt. Obviously, the policy to be followed by the governments is the so-called stimulus, basically asking for money from the banks to be distributed among the population. The COVID-19 crisis has reflected the use and abuse of stimulus as a "hot cloth to bring down the fever".
Recently President Biden announced that another $1.9 trillion stimulus package is in the works, to be distributed to the population at a rate of $2,000 per person to overcome the tremendous economic crisis in the United States. Obviously, this measure will do nothing but feed inflation, remembering that the more money circulates, the more its value will suddenly wear out.
So, the most logical measure to use the stimulus check is to do it with intelligence and at this moment the investment in cryptocurrencies is obviously high risk but at the same time it is the one that generates the best return in the short and long term at present, which is why recognized institutions such as BlackRock increasingly devote fiat capital to convert them into BTC and other digital currencies.
Yes, I recognize that the cryptocurrency market led by BTC is very unstable and certainly the so-called "Whales" usually play with the price of this cryptocurrency to drive us crazy, however, at this time the decline in the price of BTC only seems to indicate that a significant increase is prepared in the short or medium term, considering the little confidence that exists in the world for traditional investments given their vulnerability to the crisis by the COVID-19.
On the other hand, the cryptocurrency market is growing steadily, and the global interest in BTC has sparked interest in other important projects such as Ethereum and Polkadot, the latter of which has generated a real stir among cryptocurrency investors, many believe that it will become the main project among Smart Contracts in the long term.
I must also highlight the global importance of projects such as Hive and LEO, cryptocurrencies that are increasingly generating interest among cryptofans given their attractive way of working where the monetization of social networks reflects that this style of creative online work is where the world is headed.
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The $2000 helicopter money will not fuel inflation at all and is much more reasonable than the ECB's way. For most people, this amount is only a fraction of the lost income and compensates only to a very small extent the lost revenue to the local economy. Money given to large corporations and the artificially low interest rates fuel inflation sector by sector and is building up numerous bubbles.
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Precisely due to the fact that USD 2000 represents a fraction of the losses due to the COVID-19 crisis, the incentive policy will not stop being implemented, pushing society towards levels of inflation never seen before. Obviously, the large Wall Street institutions will take most of the monetary cut in fiat to acquire cryptocurrencies and buy back their own shares, a technique they use to give the impression that we are doing well. Thanks for your comment, greetings.
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I agree with this. Most of the data from large economies like Europe and Japan have shown almost no inflation even with interest rates at near zero for extended periods of time. There are even places with negative interest rates.
The United States is later to this game of persistently low interest rates and I suspect that this is going to lead to some inflation in consumer prices, but not nearly as much as people think. Manufacturing is on the rise right now and as long as production and worker productivity are creating goods and services in the economy at a rate that is equal to the production of the money supply then we shouldn't see much inflation in consumer prices.
All of the stimulus and QE so far has targeted big businesses and that is why you do see inflation in asset prices like stocks, bonds, gold, homes, and even cryptos. The large bitcoin crash a couple of weeks ago was precipitated by a strengthening dollar.
Early signals for inflation will be rising commodity prices--especially oil, increases in the Producer Price Index (PPI), rapid rises in consumer spending / consumer confidence, and low business inventories.
A lot of people seem hawkish on the inflation of dollars, fed QE, and monetary stimulus while simultaneously cheering on Crypto Airdrops, ICOs, and crypto mining. The crypto world prints like crazy and people seem dovish on this. I mean what makes an "Airdrop" any different from "helicopter money"?
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The result of endless money printing when done by all major currencies including the world's reserve currency is not classic hyper-inflation.
It is massive increases in the value of anything scarce (especially BTC and other quality crypto) followed by sudden, wholesale collapse of the entire financial system, as trust in fiat currencies disappears.
The process is already well underway.
Looking for signs of classic inflation is like checking for bed bugs on the Titanic.
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Bingo!
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The crypto market certainly looks very attractive right now, regardless of the price of BTC. Of course, Hive and LEO also seem well on their way to investor taste. Greetings, good post.
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Let them spend they want people not to retain purchasing power so they have to be reliant on the government of Yoh want to have your independence you need savings which is why I’m saving in the best tech out there BTC
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Cryptocurrencies >>> IMF advice.
That's all.
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