Signals increase as the wind of economic change grows stronger. A global economic slowdown has already begun, as central banks strive to strengthen their economies by injecting more funds. The last financial crisis was caused by the banks and it is very likely that they will be responsible for the next.
A little more than ten years ago, the world was plunged into the greatest financial crisis since the 1920s. The US banking system has disrupted the global economy by going beyond loans to hedge derivative transactions. It took years to recover, but it looks like the economic sky is getting darker again.
Last week, the Federal Reserve cut interest rates for the third time this year. It is about promoting expenses and borrowing while avoiding saving. For President Trump, however, this is not enough because he wants negative interest rates.
In another typical tirade of Trump, he again blew the Fed late last week, saying the central bank was a greater economic threat than China, which has its own banking problems.
People are VERY disappointed by Jay Powell and the Federal Reserve. The Fed said the situation was bad from the beginning, too fast, too slowly. They even narrowed at first. Dollars and prices hurt … Others are running in circles to each other.
– Donald J. Trump (@realDonaldTrump) October 31, 2019
Most economists agree that Trump's war against trade with China has harmed the US economy more than high interest rates. As the Fed creates more money, the value of the dollar deflates even more. Since 1913, the dollar has lost value. According to research, a $ 100 person could buy the same amount of food, clothing and other necessities as she does today at $ 2,529. Former Congressman and Bitcoin cop Ron Paul also dealt a blow to the current banking system, adding:
"The dollars you work hard to buy less and less, but the government tells you that there is not enough inflation.The Fed is a monopoly created by the government that beats the dollar by billion, and we think it's "capitalism".
Bitcoin solves the problem
Bitcoin, with a given offer, immune from central bank interference and decentralization by any state or nation, makes it the ideal solution. In theory, Bitcoin would become the global currency that gives people back control, not banks. An extremely flawed banking system was the catalyst that gave life to Bitcoin. As Satoshi Nakamoto himself wrote:
"You have to trust the banks to keep our money and transfer it electronically, but they lend it by waves of credit bubbles only representing a fraction of the reserve."
Proof of text: newsbtc