US Economy Growth Slowed to 2.1%, Global Coordinated Easing by Governments to Supply Bitcoin the Rocket Fuel
- Concern around trade & tariff
- Government: Let’s print money & cut down the rates, take them below zero
- Govts. giving Bitcoin the rocket fuel it was built to consume
US economic growth slowed last spring. The decade long expansion has lost momentum as the gross domestic product, a broad measure of goods and services produced across the economy, registered 2.1% annual rate in the second quarter, the Commerce Department said Friday.
This is a significant pullback from a 3.1% growth in the first quarter, this was partly driven by a jump in inventories and exports and a fall in imports, factors that reversed in last quarter.
However, strong consumer spending along with robust job market are keeping the recovery on track amidst the trade tensions and slowing global activity.
Concern around trade & tariff
President Trump said this is “not bad considering we have the very heavy weight of the Federal Reserve anchor wrapped around our neck.” Trump has been attacking the Fed for months now while calling for the central bank to cut interest rates to boost growth.
For American multinationals, the number one concern currently is around “trade and tariffs and what’s going to happen there,” said Sanford Cockrell, a managing partner at Deloitte LLP.
This is why investors are focused on this weekend's G-20 meeting in Japan. But according to the hedge fund manager Kyle Bass, nothing of importance will be achieved here. He asked investors to be prepared for Trump to slap more tariffs on the remaining $300 Chinese goods.
Government: Let’s print money & cut down the rates, take them below zero
Bass predicted that dollar-thirsty Chinese government will be forced to preside over a slowing economy that will drag the US into the mild recession by mid 2020.
Economies are slowing all over the world which means cutting rates and printing money. With the Fed, ECB, BOE, BOJ, Australia, New Zealand, Brazil, Russia, India, China, Korea, Indonesia, South Africa, and Turkey signaling or expecting fresh stimulus, there’s a globally coordinated easing in the future.
Govts. giving Bitcoin the rocket fuel it was built to consume
By increasing the domestic money supply and cutting down the rate, which in several countries is already below zero, governments are, as Morgan Creek’s Anthony Pompliano says, “giving Bitcoin the rocket fuel it was built to consume.”
HERE WE GO.
US GDP last quarter: 3.1%
US GDP this quarter: 2.1%
Economy s l o w i n g down only means one thing — cutting rates and printing money!
They don't realize that they're giving Bitcoin the rocket fuel it was built to consume.
Long Bitcoin, Short the Bankers!
— Pomp 🌪 (@APompliano) July 26, 2019
A deflationary crypto asset like Bitcoin is “A totally logical response to global monetary policy actions over the last 10 years, and the 10 coming up,” predicts Travis Kling, founder and CEO of Ikigai Fund.
Degenerate Behaviour? Bitcoin Fixes This.
Government over reach? Bitcoin Fixes This.
Poverty? Bitcoin Fixes This.
— Stephan Livera (@stephanlivera) July 26, 2019
The leading cryptocurrency, no doubt has a long way to go but we have begun to see a change in the tide as the Fed Chairman compares it to gold, calling it a store of value.
The fact Bitcoin was created in the aftermath of the 2008 financial recession, it is possible the impending recession called out by experts all over the globe will see the cryptocurrency emerges and recognizes as an SoV asset.