#BTC
Bitcoin Going to $1,000,000 Triggered by Multi-Trillion Dollar Money Printing Spree
the US is about to go on a massive money printing spree that could send Bitcoin (BTC) soaring to seven figures.
In a new essay, incoming president Donald Trump’s administration will launch a massive quantitative easing (QE) and dollar-debasement campaign, which has historically been bullish for crypto as an asset class.
QE is needed to implement “Trump’s America First Plan” that seeks to increase the money supply to make it easier for banks to provide loans to companies that “re-shore critical industries (shipbuilding, semiconductor fabs, auto manufacturing, etc.).”
With an increase in the monetary supply, the US dollar will suffer debasement, driving investors to Bitcoin as a safe store of value.
“All that is to say, it is going to be a gargantuan task to re-align supply chains to America, and if it must be done for political expediency, it will be f***ing expensive. I’m talking about high single-digit to low double-digit trillions of dollars of cheap bank financing that must be provided to shift productive capacity from China to America.
It took $4 trillion to decrease the debt-to-nominal GDP ratio from 132% to 115%. Let’s say the US reduces it further to 70%, which is where the ratio was in September 2008. Just using a linear extrapolation equates to $10.5 trillion of credit that must be created to accomplish this deleveraging. This is how Bitcoin goes to $1 million, because prices are set on the margin. As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europeans.
Get long, and stay long. If you doubt my analysis of the impact of QE for poor people, just read up on the Chinese economic history of the past thirty years, and you will understand why I call the new economic system of Pax Americana, ‘American Capitalism with Chinese Characteristics.'”
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