Federal Reserve’s Possible Fund and the Imminent Money Printing Machine

03/12/2023 02:56 • Crypto & Markets • 66 views

On March 12, Arthur Hayes, founder of BitMEX, commented on the fact that the Federal Reserve was considering setting up a fund to guarantee deposits in the event of more bank failures, saying that it was getting closer to the start of the money printing machine. Remember that they first tried the Troubled Asset Relief Program in 2008? The market continues to fall and financial institutions continue to go bankrupt. Then they finally turned on the money printing machine. I guess it may follow a similar trajectory this time. Let’s see how big the rocket launcher is.

Arthur Hayes, founder of BitMEX: More banks will fail or the Federal Reserve will restart the banknote printing machine

Analysis based on this information:

Arthur Hayes, founder of BitMEX, expressed his opinion on the possibility of the Federal Reserve setting up a fund to guarantee deposits following bank failures. According to Hayes, this kind of measure brings the United States closer to the start of the money printing machine. This term refers to the use of monetary policy by the central bank to increase the money supply by printing more physical currency or digitally creating new currency. In light of the market’s ongoing fall, Hayes believes that the Federal Reserve’s potential move towards the money printing machine could be similar to what happened in 2008, when the Troubled Asset Relief Program was implemented.

Hayes’ comment suggests that the situation currently faced by financial institutions in the United States is critical. Furthermore, if a fund is set up to guarantee deposits, this could lead to a chain reaction of bank failures, which would increase the demand for this fund. As a result, the Federal Reserve would have to print more money to fulfill the fund’s commitments, causing the money supply to surge dramatically. This scenario would also bring significant negative impacts on the country’s economy, including a rise in inflation rates, devaluation of the currency, and overall instability in the market.

Regarding the possible implementation of the fund, Hayes compares it to a rocket launcher, which could suggest the magnitude of the consequences that the Federal Reserve’s actions would cause, should such a fund become a reality. The message conveys an alarming warning that the situation must be taken seriously, and measures must be taken to prevent it from getting worse.

In summary, Hayes’ comment on the Federal Reserve and the potential fund is a direct call to action. It highlights the urgency of the situation and suggests that the United States is getting closer to the possibility of facing a catastrophic event that could impact the economy as a whole. Thus, it is essential for financial institutions, policymakers, and citizens to be aware of the ongoing situation and take necessary measures to ensure stability and prevent further damage.

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