In an attempt to awaken people to the dangers of modern monetary theory (MMT), a message was projected onto the building that “printing money is stealing from the poor,” accompanied by the bitcoin symbol. Bank of England (BoE).
The incident highlighted the gap between economic policy and cryptocurrency in general. With the alarm bells ringing about the state of the global economy, can we expect a massive awakening to financial fraud perpetrated against the public?
Central banks and bitcoin don’t get along
The central idea of MMT is that governments can and should print as much money as they need. This is because they have a monopoly on the supply of paper money and cannot go bankrupt or insolvent.
“Simply put, these governments are not dependent on taxes or loans for their spending because they can print as much as they need and are monopoly issuers of money.”
Critics of MMT argue that this philosophy contradicts conventional wisdom about the role of government in society, the nature of money, the purpose of taxation, and fiscal responsibility. There is also the problem of inflationary pressures that arise from excessive money supply.
With its proposal limited to 21 million, Bitcoin is viewed by cryptocurrency advocates as the opposite of this model. But how to replace global money, at least at Level 1, is another matter entirely.
Yet, as feasible as this scenario is, according to its creator, Bitcoin has become the opposite symbol of reckless monetary policy in the digital age.
For this reason, central banks tend to be negative about cryptocurrency. Earlier this year, during a roundtable at the World Economic Forum, Bank of England Governor Andrew Bailey warned that cryptocurrencies, especially bitcoin, won’t last long due to “lack of design and governance.”
Inflationary fears begin to spread
Last weekend, Warren Buffett addressed Berkshire Hathaway shareholders warning that the company was facing inflationary pressures.
His company reported high profits of $ 11.7 billion. But Buffett drew attention to the rise in prices due to economic recovery and the “healing of the labor market.” He added that people have a lot of money and are willing to pay higher prices.
“We are seeing very significant inflation. It is very interesting. We’re raising prices. People impose prices on us, and this is accepted. “
To allay concerns, the US central bank issued a statement calling inflationary pressures “temporary.”
However, Allianz chief economic advisor Mohamed El-Erian takes a different view. El-Erian believes inflation will continue. He added that the Fed has once again driven it into a corner by calling inflation “transitional.”
Given the mysterious bitcoin predictions for the Bank of England building and earlier this month, Houses of Parliamentit is clear that confidence in central banks is waning.
Source: BTCUSD on TradingView.com