Arthur Hayes, BitMEX founder and veteran cryptospacer, has reaffirmed his position that the US is going to print huge amounts of money again in order to boost a number of assets.
Writing in a new essay on his popular blog, Hayes says that the US government (USG) can only avoid expanding the money supply if it’s okay with letting the banking system collapse.
According to him the political establishment will not endorse such a scenario.
“The only way the money printer doesn’t go brrr is if the USG decides it will let the banking system actually fail — but I have full confidence that the US political elite would rather print money than right size the banking system.”
Hayes believes that the US and Federal Reserve have reached a point in which, no matter what direction they take fiscally, Bitcoin and gold (and possibly silver) will reach new heights. He considers the outcomes of falling inflation, higher interest rates and high inflation.
“If inflation stays high and the Fed continues raising rates — or even just keeps them where they are today — then more banks will fail, we’ll see more TBTF (too big to fail) bailouts, and the government will continue to support the creation of larger and larger TBTF banks. Bitcoin would increase in value as the gold and money supply would be increased.
If the Fed quickly cuts rates and inflation falls, banks will eventually stop failing. But, this would reduce the price of money, and gold and Bitcoin would rally…
You just can’t lose owning gold and Bitcoin, unless you believe the political elite is willing to stomach a complete failure of the banking system”
The crypto entrepreneur reiterates that at some point, there will be an increase in the supply of money, or at least a decrease in the price of money, which will be bullish for Bitcoin, gold, and some “useful commodities.”
“Like it or not, the USD will continue to depreciate against hard assets like gold and Bitcoin, as well as useful commodities like oil and copper.”
Bitcoin has a current value of $27,522.
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