TD₿: The Great Reset and The Rise of Bitcoin (a film) by Pierre Corbin
TL;DR The current monetary system is on an unsustainable path and due to this reality, an alternative monetary system has emerged.
It’s hard to wrap your head around how much money was printed by central banks and governments over the last couple of years.
In response to the COVID-19 pandemic, central banks and governments went on a global spending spree. They argue that this spending was absolutely necessary. If they had not printed trillions of dollars to keep the economy afloat, we would have suffered a much worse fate.
But fast forward today, and we are not so well off. The massive central bank asset-buying programs have helped spur red-hot inflation that is hurting the poorest amongst us the most. Yet, unbelievably, these same central banks and governments still broadly deny that their pandemic policy decisions have contributed to the economic woes we face today.
Of course, all of these “what-ifs” are impossible to prove. The fact is that they did decide to collectively print tens of trillions of dollars in response to the lockdowns in order to prevent job losses and help individual households endure the challenging environment, and now we are dealing with the consequences of those decisions.
The Federal Reserve alone expanded its balance sheet with Quantitative Easing (QE) from $4.2 trillion in 2019 to $9 trillion today. The European Central Bank created its own emergency form of QE with its Pandemic Emergency Purchase Program which ended up totaling €2.95 trillion over the last 3 years. This was on top of their “normal” asset purchase programs!
In total, the balance sheets of major central banks have swelled from $15.4 trillion in 2019 to $26.7 trillion today, a 73.4% increase.
After such a rapid increase in the money supply in response to a damaging economic lockdown, is it so surprising that the economy is now dealing with multi-decade high inflation and an increased risk of recession?
With this amount of debt in the system, these central banks now have the job of trying to figure out how to reduce their balance sheets without causing a major financial crisis.
This film by Pierre Corbin is very well made and lays out the developments that have unfolded over the last couple of years beautifully. (06/25/2022)
With this amount of debt in the system, the only way for the economy to come out of this unscathed is if we increase worker productivity and/or discover some technological breakthrough that drives innovation forward.
In the meantime, it would be wise to have a viable alternative system waiting in the wings to pick things up if these central banks are unable to accomplish this seemingly impossible task.
Tick tock next block,
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“The real bubble is in the dollar, and its 50 year old web of fiat currency printing, debt, bailouts, unsustainable govt spending, wars, consumer spending and zero% interest rates. Exit with Bitcoin. Even a fraction of a bitcoin empowers the owner.” - Ansel Lindner, Host of Bitcoin & Markets and Writer at Bitcoin Magazine
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