6 trillion U.S. dollars will be pumped into the U.S. system alone, that is about $48,000 per family if distributed evenly (definitely not). What is your estimated impact on inflation in half year, 1 year, 3 years etc, and on Bitcoin?
I read from the great book "The Bitcoin Standard" that U.S. prints an average of about 7% more money per year and China prints an average of about 20% more money per year over many years., but the actual average yearly inflation seems to me like about half of those numbers. Is it false or something like improved productivity due to improved technologies, more efficient business models, or profits/wealth taken from other countries that keep the inflation much lower than printing money?
Thanks for any comment and discussion.
I am pretty sure that all this financial aid money will come from overprinting banknotes and hoping that hyperinflation does not come. And maybe it won't, but the US is definitely playing with fire here. Even before the pandemic, I've been writing about my concerns that the next global economic crisis which would hit Earth around 2020 is going to result in the collapse of the most trusted fiat, such as USD and EUR. With what's happening in the world right now, this is even more likely to happen. Especially with USD because Trump's reaction to the pandemic is still ridiculous, and the US is now the country with the largest amount of active cases. They've been thinking about the economy, but they'll have to think about healthcare very soon.