EU is trying to do thier best to save the situation
I understand that they are trying their best to save the situation cause the countries like Spain and Italy which are hit hard by the pandemic will run into recession if the loan is not provided but they are not doing it right because the printing of much fiat currency will only cause inflation and this was the exact mistake they have done back then before the existence of bitcoin and i wonder why they are recruiting the same mistake.
Topic: EU has joined in with 826bn. Globally over 10tn has been printed (Read 298 times)
How are we going to feel all of this in the end? That is what I want to know. Right now economy is not awesome obviously but its not at a "we are all going to starve to death" level neither, we are doing fine.
In developed countries that's in large part due to stimulus and relief measures, government loans to affected businesses, temporary forbearance and deferment of debt, moratoriums on evictions, etc. These put a big band-aid over everything. Whether they will reverse the tide, we'll see.
In less developed countries there is actually great fear about hunger. https://time.com/5842424/hunger-coronavirus-world-food-programme/
Quote
An estimated 265 million people could go hungry in 2020, nearly double the 2019 figures, according to WFP’s projection in April.
How are we going to feel all of this in the end? That is what I want to know. Right now economy is not awesome obviously but its not at a "we are all going to starve to death" level neither, we are doing fine. I was expecting something much much bigger when this pandemic hit all the developed nations. USA is one huge nation in economy and they have 100k+ people dead, with millions unemployed and yet the economy looks like it is doing just bad, and I mean bad is good when we are talking about something this huge, it suppose to be horrible, it suppose to be world ending, not just bad.
So, I want to know what awaits us in the future, I can't even begin to think what would happen if the economy just continues like this, I expected a horrible one but got a bad one instead which is alright but the bad one can't continue forever, we need to start recovering, but if we go even worse instead of recovering it is going to be hell.
So, I want to know what awaits us in the future, I can't even begin to think what would happen if the economy just continues like this, I expected a horrible one but got a bad one instead which is alright but the bad one can't continue forever, we need to start recovering, but if we go even worse instead of recovering it is going to be hell.
EU is trying to do thier best to save the situation
By devaluing their own currency? All fiat currencies are designated to die sooner or latter. It was known already before covid-19 pandemic. This ill just make it faster. Economist dont care about it anymore. They of course believe that there will be simple bailout and will simply start using new fiat currency. But Bitcoin have other plan.
EU is being run by populists and I don't expect much in terms of fiscal intelligence. They need to keep their support base (i.e welfare rats) happy with unlimited infusion of free money. This is not viable in the long term, and sooner or later we will witness a complete economic meltdown similar to what happened in Greece a few years back. The COVID 19 pandemic will act as a trigger.
Italy's economy (at 10x the size of Greece's economy) has the weight to crush the Euro if it collapses. That's a much bigger concern than a marginal increase to the the EU's debt ceiling.
Yes, Italy is a huge concern. It's the same old narrative in the EU - whether true or not - of the 'responsible north' bailing out the 'profligate south'. This pandemic has hit Italy and Spain harder than most, and these two countries get a lot of income from tourism, which is obviously one of the worst-hit industries. But all of Europe is hurting economically. Tension is increasing, the question is whether it will increase so far that the EU collapses.
The European Union has revealed its intention to raise up to $ 850 billion to its members to fund their recovery from the economic meltdown.
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.
Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.
Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.
Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.
Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/
I don't think that the 750 billion euro EU plan is approved by all countries yet.The northern countries(Netherlands,Germany,Sweden) don't want to increase their spending,while the southern countries want more help coming from the EU budget.The idea of Euro obligations is a problem,and the rich northern countries refuse to pay the debts of the poor south.
Anyway,the EU stimulus plan is way smaller than the US and Japan stimulus plans,so the euro will keep it's value and will continue to be one of the world's most expensive fiat currencies,which is bad for the EU export.
I see the European Union has done the right thing, because in a crisis situation like now there is no other choice. Printed money must
be done to recover from the economic crisis, the amount of $ 850 billion is indeed a huge number. But I am sure that the $ 850 billion
has been calculated by the European Union, although the effect will occur tax increases and inflation in Europe. Even countries like Japan
and the United States do the same thing. And this will take place at least until the vaccine is found.
be done to recover from the economic crisis, the amount of $ 850 billion is indeed a huge number. But I am sure that the $ 850 billion
has been calculated by the European Union, although the effect will occur tax increases and inflation in Europe. Even countries like Japan
and the United States do the same thing. And this will take place at least until the vaccine is found.
Austerity - in the UK at least - is not really an option, services have been trimmed back so far over the last decade that there is nothing more to cut.
Not only that but UK austerity policies have obviously hindered growth. Some estimates say the economy is £100 billion smaller now than it would otherwise be. https://www.theguardian.com/business/2019/feb/21/uk-economy-100bn-smaller-because-of-austerity-thinktank
With the worst recession in 300 years setting in, they can't afford to hinder growth like that.
EU is trying to do thier best to save the situation
By devaluing their own currency?
They aren't printing money. They are issuing bonds on the financial markets. The Euro rallied on this news, up 2.5% against the USD.
Italy's economy (at 10x the size of Greece's economy) has the weight to crush the Euro if it collapses. That's a much bigger concern than a marginal increase to the the EU's debt ceiling. At least that is what the forex markets are suggesting.
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EU is trying to do thier best to save the situation
I understand that they are trying their best to save the situation cause the countries like Spain and Italy which are hit hard by the pandemic will run into recession if the loan is not provided but they are not doing it right because the printing of much fiat currency will only cause inflation and this was the exact mistake they have done back then before the existence of bitcoin and i wonder why they are recruiting the same mistake. EU is trying to do thier best to save the situation
By devaluing their own currency? I know that this seems to be the easiest way, but there's always someone that loses, they're just making a switch so that the minority of rich people with a lot of savings lose and the majority of poor voters who could take the streets in a SHTF situation get some money. They're stealing from the rich and giving it to the poor by printing more money and increasing welfare.
That is why some rich today are buying companies too. I have a Chinese friend whos buying fitness gyms these days in the malls. That's the way for them to avoid losing value to their money. It's the savers that suffers.
USA is dealing with yet another for 2.4 trillion as well, that is going to tally theirs up to over 4 trillion printed. However, people are not realizing how small that is for bigger nations to cover compared to smaller nations. For example if you are some third world nation and print out 1 trillion dollars worth of money to your nation, that is going to make your inflation skyrocket like crazy.
But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.
But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.
They really need to print more of it because 4Trillion is just not enough to provide for the people. If every release of money is announced to 4 corners of the world and they are just doing it bits by bits, it will sound the worse but if they print 100Trillion with just one news cover for the entire 6 months, that's fewer announcement that won't make people panic.
USA is dealing with yet another for 2.4 trillion as well, that is going to tally theirs up to over 4 trillion printed. However, people are not realizing how small that is for bigger nations to cover compared to smaller nations. For example if you are some third world nation and print out 1 trillion dollars worth of money to your nation, that is going to make your inflation skyrocket like crazy.
But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.
But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.
The response to the crisis has once again thrown the inadequacies of the fiat system into sharp focus. In theory it should give a huge boost to bitcoin, but in practice we are probably not there yet. Bitcoin is still seen as a speculative asset rather than a rock-solid safe-haven during times of economic turmoil.
But economies are going to continue to suffer, the 'new normal' of social distancing is going to be with us for some time, many businesses are going to either fail or get further emergency payouts. And whole industries remain in trouble - restaurants for example, many have said that a social distancing seating plan is going to reduce customer numbers to such an extent that they will have difficulty breaking even, let alone running a profit. Arguably the best way out of this is massive spending on a green economy. Austerity - in the UK at least - is not really an option, services have been trimmed back so far over the last decade that there is nothing more to cut.
However governments respond, the case for bitcoin will continue to grow as a result of this pandemic.
But economies are going to continue to suffer, the 'new normal' of social distancing is going to be with us for some time, many businesses are going to either fail or get further emergency payouts. And whole industries remain in trouble - restaurants for example, many have said that a social distancing seating plan is going to reduce customer numbers to such an extent that they will have difficulty breaking even, let alone running a profit. Arguably the best way out of this is massive spending on a green economy. Austerity - in the UK at least - is not really an option, services have been trimmed back so far over the last decade that there is nothing more to cut.
However governments respond, the case for bitcoin will continue to grow as a result of this pandemic.
Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
As much this support and printing of money is going on but at the same time it can lead to inflation because economically if too much money is in the system circulating, the liquidity can increase inflation because prices will go up too. Maybe the other thing to do is to increase level of tax but that too will affect the middle earners and lower income people also. Money can come in but gradually circulating will be better.
What you are saying about the tax increase is about to happen and I've seen countries like in the Middle East have already considered it. IIRC, US and EU countries as well.
EU is trying to do thier best to save the situation
By devaluing their own currency? I know that this seems to be the easiest way, but there's always someone that loses, they're just making a switch so that the minority of rich people with a lot of savings lose and the majority of poor voters who could take the streets in a SHTF situation get some money. They're stealing from the rich and giving it to the poor by printing more money and increasing welfare.
It 1/10 of this money is injected into bitcoin, the price will skyrocket to 100k.
Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.
As much this support and printing of money is going on but at the same time it can lead to inflation because economically if too much money is in the system circulating, the liquidity can increase inflation because prices will go up too. Maybe the other thing to do is to increase level of tax but that too will affect the middle earners and lower income people also. Money can come in but gradually circulating will be better.
EU is trying to do thier best to save the situation
I don't see any direct correlation of Bitcoin to the 826 billion euros recovery plan though, as experts said that Bitcoin has shown stability on its value in a short span of time it only means that most of them are now seeing the advantages of Bitcoin and how it can be useful in the economy in times of crisis like this pandemic.
In regards to the inflation and unemployment rate, we can't really avoid that for every economy around the globe are severely ill right now and the only hopes that every government has is through debt. However, we probably also suffer from it but instead of witnessing our economy die then better to take advantage of these loans and we all just need to work hard and strive for the recovery of our economy. Someday, all countries in the world should really work hand in hand regardless if there's any hidden agenda by some but that will make it all countries get unified to raise from the worse situation brought by the pandemic.
In regards to the inflation and unemployment rate, we can't really avoid that for every economy around the globe are severely ill right now and the only hopes that every government has is through debt. However, we probably also suffer from it but instead of witnessing our economy die then better to take advantage of these loans and we all just need to work hard and strive for the recovery of our economy. Someday, all countries in the world should really work hand in hand regardless if there's any hidden agenda by some but that will make it all countries get unified to raise from the worse situation brought by the pandemic.
Fiat is being printed all over the world. There's no way to avoid that, but to revolutionize the monetary system like it happened with the Gold Standard. I still find it quite bizarre to use such advanced technologies like AI and automation and we can't come with a more effective system.
Well, for the educated people the current system is ok, as they quickly dispose of their cash and buy assets that act as a hedge against inflation.
Well, for the educated people the current system is ok, as they quickly dispose of their cash and buy assets that act as a hedge against inflation.
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