Biden’s budget of $ 6 trillion could fuel inflation fears and Bitcoin profits

The president wants to print as if he had his own Bitcoin bags, and there is no end to the expected monetary expansion in sight.

When it rains it pours. It appears that this is true of both the weather and the expansion of the United States’ monetary base. According to a report in the New York Times, President Biden is due to propose a budget of $ 6 trillion on Friday that would put the United States on the highest sustained government spending since World War II, while running a deficit of over $ 1 over the next decade Would make $ 3 trillion. “

The pandemic only started a year ago, and the Federal Reserve was forced to give the economy a big boost through inflation and quantitative easing. Starting from $ 2 trillion, the stimulus package should allow the American economy to continue. Of course, the pandemic was just a catalyst to reinforce the Fed’s inflationary practices that already existed.

Inflation is an insidious concept that not only deprives ordinary people of their money, but also enables a select few elites to create value out of nothing. “When more is not better: Inflation in the 21st century” by Bitcoin magazine by Sebastian Bunney explains in detail how monetary expansion is ruining economic growth and potential. And it’s not just rampant inflation in the sense of more money that is ruining the system, lowering interest rates and making credit cheap, which leads to long-term debt cycles, as Bitcoin Magazine’s Dylan LeClair explains.

In my own essay, “If You Don’t Buy Bitcoin, You Can’t Be Rich,” I state that anyone holding cash is at astronomical risk because all of its worth is in the trust that the Federal Reserve will believe in their system. But really, the gig is over. Even elected officials have lost confidence, like Miami Mayor Francis Suarez, who has admitted that the previously proposed $ 1.9 trillion incentive drove him to buy Bitcoin. Indeed, when articles are written about the death of the US dollar and billionaires sound the alarm that monetary policy is not in line with economic conditions, something goes drastically wrong.

With all of this, Bitcoin will win. While it cannot be explicitly stated, the previous stimuli have often been viewed as the drivers of the Bitcoin price bull run. And with simultaneous upward catalysts like the halving, the economic environment seems ripe for healthy money like Bitcoin. It remains to be seen whether the $ 6 trillion proposal will be adopted, but it is evident that further inflation is to be expected and should help revive the bitcoin bull market we are in.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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