The US consumer price index (CPI), which measures the prices of certain consumer goods and services, increased by a yearly rate of 5%, hitting the highest level since August 2008, per data from the US Bureau of Labour Statistics.
Cryptocurrencies aren’t going away. Buy Bitcoin here.
As money printing and economic stimulus measures continue in the wake of government-ordered lockdown measures, the non-exhaustive CPI indicates that USD inflation is a the highest level since the Great Recession, leading the notable concerns from investors.
As reported by mainstream media publications like the Guardian, inflation is now being picked up even by government measures, escalating fears among investors.
The newspaper notes: “Fears over rising prices in the U.S. have gripped markets, with investors fearing that pent-up demand and supply chain bottlenecks would create inflationary pressures, forcing central bankers at the Federal Reserve to slow their stimulus program… Core inflation, which strips out volatile items such as food and energy, leaped to the highest level since 1992. It rose 3.8% year-on-year, up from 3% in April.”
Introduced with direct overtures to the Great Recession, Bitcoin is designed to solve many of the problems currently peaking their heads in the legacy financial system. Bitcoin’s supply is predetermined, released in a programmed way and is entirely free from manipulation by third parties like the Federal Reserve or the European Central Bank (ECB). As such, it cannot inflate like the US Dollar.
Concerns about inflation in the wake of rampant money printing lead many to invest in bitcoin as a means to protect their wealth. This economic trend
Bitcoin, which was introduced with direct overtures to the Great Recession, is designed to solve many of the problems currently rearing their heads in the legacy financial system. The bitcoin supply is predetermined, released in a programmed way and free from manipulation by third parties, such as the Federal Reserve. As such, it cannot inflate as the dollar is currently.
Concerns about inflation drive many people to invest in bitcoin, as a way to better protect their wealth. Current economic trends appear to be setting the stage for another crisis of Great Recession proportions, something which Bitcoiners have warned about for some time.
Last year, the Federal Reserve moved the goal-posts for inflation, allowing inflation to run hotter than usual in order to support the labour market. The move is a notable departure from the previous method of adjusting targets depending on the underlying economic conditions.
Former US Treasury Secretary Larry Summers raised concerns about the move recently:
“We’re taking very substantial risks on the inflation side……The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced.”
Subscribe to the semi-weekly newsletter for regular insight into bitcoin and crypto. Go on. It’s free.
Join the telegram channel for updates, charts, ideas and deals.
Did you like the article? Share it!