Victor Ugochukwu · Dec 14, 2020 . 5min read
Federal Reserve printed almost a quarter of all USD issued since America’s creation
The Federal Reserve money creation in 2020 alone equates to about 22% of all the money ever created states a research report.
By Victor Ugochukwu · Oct 8, 2020 . 7min read
The thoughts that hyperinflation may well be underway with the way the Federal Reserve has gone on a printing spree may not be out of place. For instance, recent research studies show that the Federal Reserve money creation in 2020 alone equates to about 22% of all the money ever created since the establishment of the Union.
For context, the Feds have rolled out about $9 trillion since September used for bailing Wall Street firms and corporate interests. As the Wall Street on Parade’s (WSP) by Pam Martens and Russ Martens shows, the Federal Reserve which controls the printing the USD takes advice from the likes of Frontpoint, a Wall Street hedge funds. This is against the backdrop that SEC has once indicted executives of Frontpoint. The hedge fund shorted the subprime mortgage market during the 2007 to 2010 financial crisis.
The Feds has been “conducting meetings with hedge funds” to get the financial institution’s “input on the markets”. As the Federal Reserve consulted with three major firms during the 2008 economic crisis, it’s doing the same today. The Money Market Mutual Fund Liquidity Facility; the Primary Dealer Credit Facility; and the Commercial Paper Funding Facility are the firms with Federal Reserves today.
With corporate advice comes corporate interests. That is a truism even WSP’s investigate report proves. The allegations are that the Feds provided data without including the names of the recipients of the daily loans.
All it will say is that the loans are going to its 24 primary dealers, which are the trading units of the big banks on Wall Street.
Some of these banks could be in the recent damning leaked FinCEN files where banks knowingly aided money laundering activities.
Crypto experts think if this goes unabated, it could result in hyperinflation, Bitcoin, a hedge.
Many Bitcoin enthusiasts are not hiding their hardline on Bitcoin replacing the US dollar as the global reserve. They believe it offers better monetary policy than the fiat, which is the government’s essential tool for taxation. As inflation rises, it means holders of any government-issued fiat currency also suffer the indirect taxation consequence.
Pantera Capital is an investment firm which exclusively focuses on ventures, tokens, and projects related to blockchain tech, digital currency, and crypto-assets shares the same sentiments. In July publication to its investors, Pantera Capital while addressing the Federal Reserve issue said
That’s EXACTLY why one should get out of paper money and into bitcoin. It isn’t being inflated away. One bitcoin is a constant fraction of the total 21 million that will ever exist. There is no need for inflation-adjusted numbers — because there is no inflation/hyper-inflation.
Moreso, most argue this is precisely why Satoshi created Bitcoin. As fas as we know, Bitcoin Genesis block contained a message about the Federal Reserve bailing out another failed bank.
With institutional investors and public company like Microstrategy taking positions in Bitcoin, perhaps many more will smell the coffee and act. Ultimately using Bitcoin, the performing asset class of the last decade as a hedge.
Follow Cryptodose for daily updates.