How often does the US print money

US prints more money in one month than in two centuries: is Bitcoin the way out of inflation?

Federal Reserve money pressures have soared to incredible levels - will that lead to inflation?

In a letter to investors posted on July 29, Dan Morehead, CEO of Pantera Capital noted that the United States had printed a shocking amount of money to fight the financial crisis caused by the pandemic.

“The United States printed more money in June than it did in the first two centuries after it was founded,” Morehead wrote. “Last month the US budget deficit - $ 864 billion - was greater than its total debt for the years 1776 through late 1979.

Morehead made it clear that Pantera Capital sees Bitcoin as the solution to the current crisis. He also compared the effects of printing money in recent months with the effects of how the corresponding currency amount had developed over the centuries:

"With the first trillion [printed US dollars] we defeated the British imperialists, bought Alaska and Louisiana, defeated fascism, ended the Great Depression, built the interstate highway system and went to the moon."

Morehead cited the resulting inflation as the main reason for “getting out of paper money and getting into Bitcoin”. According to the CEO, "[with Bitcoin] there is no need for inflation-adjusted numbers because there is no inflation / hyperinflation".

Biggest inflation period in world history?

Gold investor Peter Schiff is also concerned about the impact of money printing. He noted comments from Federal Reserve Chairman Jerome Powell, who said this week that the Federal Reserve is using “its full range of tools” to respond to the pandemic: printing money, interest rates close to zero hold and stabilize asset purchases at $ 120 billion per month.

"The US is about to experience one of the largest inflation periods in world history," said Schiff on Twitter. “Any credibility that the Fed has left will be lost. Federal Reserve Notes will soon be of no value, ”Schiff said on Twitter.

Jerome Powell couldn't be more wrong that the current crisis is a deflationary shock. The U.S is about to experience one of the greatest inflationary periods in world history. Any credibility the Fed has left will be lost. Federal Reserve Notes soon won't be worth a Continental.

- Peter Schiff (@PeterSchiff) July 29, 2020

Consumer prices too high?

Despite widespread inflation fears, many experts believe that consumer prices will indeed enter a phase of deflation - and that is exactly what happened this week in Australia, where ABC News reported that consumer prices in the country actually fell 1.9% in June are. That's a record for deflation since the Korean War.

Many experts believe that inflation is hidden in asset prices rather than consumer prices, and that money pressures supported the stock market rally amid the pandemic.

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

“Bet on a surge in crypto until schools / daycare centers are open. Until then, the economy will not work and money will be printed continuously ”.

We are excited to see where all the central bank money printing will take us.

© image viaFlickr / license