As the Trump administration passes a snowballing debt pile onto Generation Z with self-serving monetary policy, a powerful pro-Bitcoin argument once confined to developing nations is coming home to roost.
The importance of cryptocurrency as a means of financial independence became starkly apparent on Thursday when Trump economic advisor Larry Kudlow made the bold – and shocking – claim that we “wouldn’t see another rate hike in his lifetime”.
The “economist” is 71 and has excellent federal healthcare benefits, so either he’s not feeling particularly optimistic about his prospects, or he’s confident that Trump will rule the Federal Reserve by proxy through at least his second term. Either way, it’s an odd claim.
Of course, we know the real reason he threw cold water on rate hawks. He’s trying to make sure the stock market is as pumped up as possible for Trump 2020 – so he can keep his job. Kudlow’s economic plan also requires a desperately weak dollar to keep foreign investment funding the debt-hole Trump blew open with the recent tax reform.
I’ve never seen a more compelling argument for Bitcoin than the corruption and mismanagement that infects so many governments and central banks. Usually, these are in nations like Zimbabwe or Venezuela, where abuse of power has permeated every inch of public governance.
However, disastrous monetary policy festers in the first-world, too.
Naturally, a deflationary asset like Bitcoin could be a life-saver for people who have faced hyperinflation, but many reports have suggested that it isn’t such a compelling idea in the developed world, where sturdy mediums of exchange exist. This argument ignores the fact that damage isn’t always immediately apparent.
The problem with limited-term governance is it encourages politicians to look only in the near-term. If you are a US resident born into Generation Z, you must helplessly watch your future tax burden grow with every passing month. It’s the only way to undo the mess that years of recklessness have created, and Trump’s tax cuts have put the cherry on top.
Does anyone remember when Republicans cared about fiscal responsibility?
Given that Trump’s yes-men now crowd the halls of the White House and are likely soon to sit at the Fed, Bitcoin may be the only way for the future to regain their future.
Financial independence has always been important, but it’s quickly growing vital. The cost of two recessions has been kicked far down the road, and – newsflash – someone has to pay for it.
The US dollar remains the world’s reserve currency because of its stability and liquidity. Cryptocurrency, in contrast, is illiquid, and the public trusts it less – for now. Every time the White House attacks the Fed or increases the unfunded debt, the confidence-gap narrows.
If that’s not bullish for Bitcoin, I don’t know what is.
Last modified: July 2, 2020 8:11 PM UTC