BITCOIN soared “600 percent” after the first US coronavirus stimulus package, and now the Biden administration is about to release another $1.9 trillion as part of the Federal Reserve’s continued money printing band-aid for an economy faltering due to pandemic lockdowns.
Max Keiser
Bitcoin pioneer Max Keiser said: “The first stimulus saw the bitcoin price go up 600 percent.”
Mr Kesier added: “The more they print to bolster the failing economy the higher bitcoin goes up as more fiat money seeks safe harbour in bitcoin.
“This, in turn, weakens the fiat economy prompting government to print more fiat money.
“Two things are certain, countries backed by fiat money (and all countries are backed by fiat money) will fail, and Bitcoin will continue to rise.”
One bitcoin enthusiast that I interviewed said; “Let’s just say that the last $1200 stimulus check is now worth over $6000 if you invested it in bitcoin.”
Another said: “Even if the price wasn’t soaring, 100 percent of my check is going into BTC.
“I’m tired of holding an inflationary worthless piece of paper, I want real money.”
US economist Art Laffer
Former Reagan US economist Art Laffer told Fox News on Monday that President Biden’s proposed $1.9 trillion coronavirus relief bill could “lead to slower economic growth”.
His comments come on the heels of US Treasury Secretary Janet Yellen downplaying fears of inflation.
She states there will be a return to “full employment” in 2022 if the stimulus package passes.
Mr Laffer told FOX Business’ “Mornings with Maria” that Mr Biden’s stimulus package is “way too large”.
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American Family Act
Today the Biden administration announced plans for the American Family Act.
This would be a coronavirus relief package that would provide $3,600 over the year to parents with children age five and under.
It would distribute $3,000 to parents with kids between the ages of six and 17.
Democrats wish to establish it as a one-year emergency federal program, but will likely press for its permanent extension later this year.
Democratic Rep. Rosa DeLauro
Democratic Representative Rosa DeLauro of New Jersey today said: “Nobody pays their bills once a year, you pay your bills each month.
“The design makes more sense and helps families make ends meet through difficult months.”
The Washington Post reported the payments would start being issued to individuals earning $75,000 and below.
DeLaura said: “Through the legislative process, this will be worked out.
“We anticipate that those technicalities will be sorted out in the course of debate and discussion.”
Michael Saylor’s Microstrategy
The current bitcoin price is soaring after Tesla announced on Monday a purchase of the digital asset worth $1.5 billion.
This comes after Michael Saylor’s Microstrategy bitcoin holdings went up from $1.1 billion last year to be valued at over $2.2 billion now.
However, writing in The Dig, financial reporter Michael Rapoport said: “MicroStrategy is one of a still-small but growing number of companies placing bets on bitcoin and other digital currencies.
“Those moves have a degree of logic behind them, and certainly the potential rewards are tempting.
“But they’d better keep in mind that bitcoin has the potential to bite them, too, and not just in the obvious ways.”
So far Mr Saylor’s bet has yielded only profits.
Twitter CEO Jack Dorsey
Twitter CEO Jack Dorsey has followed suit when his payment platform Square indicated in October it would invest $50 million in bitcoin.
Mr Dorsey called cryptocurrencies “an instrument of economic empowerment”.
Influential investors like Paul Tudor Jones, Stanley Druckenmiller, and insurance company MassMutual also invested in bitcoin throughout 2020.
Referring to Elon Musk’s investment Mr Keiser said: “Elon’s $1.5 billion bitcoin purchase is another domino falling with thousands more to come.
“The biggest risk now for individuals and corporations is NOT owning Bitcoin.
“Central banks will never stop printing trillions and there will only ever be 21 million Bitcoin.
“Do the maths.
“My 2021 price target of $220,000 is just a stepping stone to much higher prices.”
