Plan Bitcoin Is Inevitable if You Think About What the Fed’s Printing $6T Means
Thinking about it for even 10 minutes will show you that it’s time to act.
Just a week ago, the Federal Reserve made a stunning announcement. Determined to save the current monetary and financial system at all costs, the Federal Reserve unanimously decided to start a program of unlimited quantitative easing.
Quickly after this announcement, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, was interviewed on the CBS program “60 Minutes”. He then made an even more incredible statement:
“There is an infinite amount of cash in the Federal Reserve. We will do whatever we need to do to make sure there’s enough cash in the banking system.”
— Neel Kashkari
You read that right. Neel Kashkari boasts that the Federal Reserve can print an infinite amount of U.S. dollar.
This infinite amount of U.S. dollar will benefit a minority of people because it will be destined for American banks, financial markets, and businesses.
The American citizens who are hard hit by the economic crisis that is beginning are therefore the ones who have been forgotten by the Federal Reserve’s announcements. In order to correct this shortcoming, Donald Trump and the U.S. Senate have agreed on a package that is supposed to stimulate the U.S. economy.
In this package of $2T, which will be financed by an increase in the U.S. debt, we find in particular a check of $1,200 which will be sent to each American. Once again, the goal is not really to help the poorest American citizens, but to try to boost consumption in the United States in order to support American companies.
Of course, Donald Trump boasted at a press conference that he can afford to print the U.S. dollar ad infinitum, because it is the currency of the United States:
“The beautiful thing about our country is $6.2 trillion, because it is 2.2 plus 4. It’s $6.2 trillion, and we can handle that easily because of who we are, what we are. It’s our money; we are the ones, it’s our currency.”
— Donald Trump
At the level of the Federal Reserve, a first estimate suggests that this unlimited quantitative easing program will exceed at least $6T. This figure is so high that many people don’t seem to realize what it means.
This is a real shame, because if you really take the time to think about what this cash injection means for you as an individual, you will come to the conclusion that it is time to move to a plan B now.
And that plan B is called Bitcoin, as I will explain in this story.
Take the Time to Put Into Perspective These $6T
The numbers announced by the Federal Reserve and the U.S. government as part of their measures to provide monetary stimulus are so high that you may find it hard to realize how large they are.
Billions, you know. But here we’re talking trillions. The simplest way to give you a first idea is to write down completely the amount of $6T that the Federal Reserve is going to inject into the system:
At the rate things are going, you’re going to have learning what the unit is to represent 1,000 trillion within a few years. For the record, it’s the quadrillion.
It sounds like an immensely large number, and it is. To give you an order of magnitude, these $6T are:
- The M2 Money Stock in USD from 2004.
- U.S. GDP in 1990.
- Enough money to buy 70% of the world’s gold stock.
- 1.6 years of tax revenues in the United States.
- More than 53 times the market capitalization of Bitcoin as of March 30, 2020.
Think About What the Fed’s Printing $6T Means
I think you’re now getting a better idea of what these $6T that’s going to be printed by the Federal Reserve in the coming weeks represent. At least you can understand that it’s a huge amount of money.
This ability of the Federal Reserve to print as much money as it want is problematic from my perspective.
The Federal Reserve is independent of the U.S. government, so its leader are not elected by any American citizen. Its decision-makers are not representative of the American people. All their decisions are purely arbitrary.
When the Federal Reserve prints money, it increases the circulating money supply of the U.S. dollar. This money supply is represented by the M2 Money Stock Index.
The money you have in U.S. dollar is included in this M2 Money Stock. When the Fed decides to increase this M2 Money Stock by $6T in a few weeks, it means a terrible currency devaluation of the U.S. dollar.
What you own in U.S. dollar de facto loses value.
To give you an idea, the purchasing power of $100 of an American in 2010 was already worth only $82 at the beginning of the year 2020:
Your purchasing power had already lost almost 20% in the space of 10 years. With this injection of $6T decided by the Federal Reserve, the drop in your purchasing power will be strongly accentuated.
By creating all this money to save a minority of people, namely the banks and financial markets, the Fed is impoverishing a majority, namely all American citizens.
To give you a strong image, the Fed can be compared to the antithesis of Robin Hood: it takes from the poor to help the rich.
Discover the Bitcoin’s Monetary Policy
Until now, you had no weapons at your disposal when the central bankers practiced this easy money policy so beloved of Alan Greenspan, who was president of the Fed from 1987 to 2006.
Today, things are different. You have Bitcoin at your disposal. Many people don’t realize it yet, but Bitcoin is a real hedge against currency devaluation.
Satoshi Nakamoto created Bitcoin at the end of 2008 to offer citizens around the world an alternative to the monetary and financial system.
The fact that he created Bitcoin in the aftermath of the economic crisis of 2008 is clearly no coincidence.
Bitcoin has a monetary policy that does not depend on any human being. Its monetary policy is programmatic, because it is embedded in its source code. Everything is automatic and predictable with Bitcoin.
You know that there will never be more than 21 million Bitcoins created. If you prefer to see what this looks like on a chart, here is the expected evolution of the maximum Bitcoin offering from 2010 to 2100 :
I think this chart is eloquent enough for you to realize that Bitcoin offers you a unique guarantee: 1 BTC of 2020 will always be equal to 1 BTC of 2100.
Bitcoin protects you from currency devaluation, and this is something that is essential at a time when the Federal Reserve makes monetary stimulus its only response to all the ills of the economy.
If you need a comparison between the maximum supply of Bitcoin and the U.S. dollar which is unlimited as the Fed and Donald Trump explain, here it is through a powerful illustration:
Plan Bitcoin Is Your Best Chance to Opt-Out of This Fiat System
So as an individual, you can’t just sit back waiting for the Federal Reserve and the other central bankers to continue devaluing everything you own. This is clearly your vision of the future.
You have to realize that you are fortunate to have a plan B available to you in the face of this new economic crisis that is starting to unfold.
This plan B did not exist in the past, but now it is there, and has been growing stronger every day for more than eleven years now. This plan B is the plan Bitcoin.
Bitcoin is your hedge against currency devaluation. Your best chance to opt-out of this fiat system which after 49 years of experimentation clearly doesn’t seem to be working as it should.
The inequalities between the very rich and the very poor have been growing since Richard Nixon de facto introduced this system in August 1971. It is time for every citizen to try experimenting with a new system that clearly gives them back their power.
As such, everyone should at least realize the importance of buying even 1 Bitcoin to prepare for the future. It’s up to you as always, but make sure you educate yourself to go beyond what politicians want you to believe.