What Is the Crypto Equivalent of a Stimulus Package?

[JA8]

On 4/9/2020 at 5:57 PM, MistaPrime said:

If we had Bitcoin or XRP or any crypto being the world's currency. Then what can we do in case of a pandemic where people need extra money to survive since the economy is halted? We certainly can't just print more like the Feds do.

Hopefully, we do nothing. If businesses can't survive the pandemic, then that's very unfortunate... but that's capitalism. If we intervene to prop up markets we just end up creating an ever-more indebted zombie economy.

Without the endless money printing we've seen over the past decade, businesses would not have been able to spend themselves into a corner, nor expand to an unrealistic size based on fake demand from currency inflation.

If we hadn't taken that unfortunate path, then today there would be healthier businesses with better job security and better job prospects. These would be serving real needs within the market... and with proportionally stronger balance sheets they would be better equipped to handle the events we're seeing unfold now.

A Crypto-based monetary system could have mitigated a lot of the economic carnage we're now unfortunately guaranteed to see over the coming decade.

Edited April 12, 2020 by JA8

[Wandering_Dog]

2 hours ago, AlejoMoreno said:

You’re nothing but a jiggly liver swine. Have fun.

 Sounds like an angry neoclassical economics response. Monetary Post Keynesians predicted this crisis, the last crisis, QE's impact on prices, and much more. You can whine all you want about your models, you're wrong. 

[kanaas]

[emoji4] Sounds like an angry neoclassical economics response. Monetary Post Keynesians predicted this crisis, the last crisis, QE's impact on prices, and much more. You can whine all you want about your models, you're wrong. 

Crypto cannot create value. People do!
(and than the society translates that value into a carrier, being a currency, can be fiat or crypto)

[enrique11]

I don't think there is a stimulus package anywhere to counteract the global economic repercussions of a new virus strain that has significant exponential infectious growth (it was doubling every four days at some point in the past). Personally, I believe from the CDC numbers I've seen clearly indicate that the worst is over in terms of growth rate...the growth rate has been in steady decline in the US for three weeks and today sits at 7%, yet a significant percentage of infected are asymptomatic carriers, and countries in which lockdowns are not mandatory or in which such an action is seen as unpatriotic or too extreme for whatever reasons; e.g., political, economic (US comes most to mind) will tend to be the hardest hit.

Dictatorships,  military oligarchies, etc. in this instance that want to save their economy oddly enough have an advantage when it comes to pandemics because they have much greater control over their own populations through aggressive, unilateral actions taken by the government with little opposition, and can move as a unit at the very top to impose their will on the rest - top/bottom approach.  In the US, we have a two party system, and the Democrats dominate the House, and many of the higher courts and so can block the will of the Republican administration.  Also, we have the most practicing lawyers, so the lawyers can drag this political war out by proxy for ages, while the virus continues to do as it pleases.

Americans value freedom and work, and our two-party system has been the status quo for ages, so there will be no easy going unilateral decision that will stop the growth rate of this virus dead in its tracks, unless things get really out of hand, and politicians are forced to wake up and see the reality of loved ones getting sick and possibly dying.  Politicians don't have to worry like regular American, because their pockets tend to be very deep.

I think of Covid-19 as a global "natural" disaster sparked by the Chinese (as has been the case in the past with SARS, H7N9 (bird flu), and now Covid-19) unintentionally of course, but I believe the spread of Covid-19 about the globe by the Chinese government was done intentionally as a back-up "plan B" to level the global economic playing field in case Covid-19 got out of control in China. 

 

[Dogowner5]

8 hours ago, Wandering_Dog said:

Without fed intervention, everything would have gone to zero. The Fed is really skewing your perception here. Just FYI, no one was buying, not even treasuries. 

You think no one bought when stocks were sold?  Really?   There is a buyer in every trade.  You can’t just say things and then consider them a fact.   If you are wrong about this fundamental and obvious thing then...

[Dogowner5]

9 hours ago, Wandering_Dog said:

Gov doesn't tax to spend, your causality at the Federal level is reversed.

I’m starting to wonder if you are some sort of joke bot gradually ramping up the ludicrousness to see how long people will engage.  (You probably are not but there is a doubt in my mind)

[Trentsteel]

1 hour ago, Dogowner5 said:

I’m starting to wonder if you are some sort of joke bot gradually ramping up the ludicrousness to see how long people will engage.  (You probably are not but there is a doubt in my mind)

Shouldn’t fake a dogowner to realise it’s just an aimless pooch 😬

[Wandering_Dog]

12 hours ago, Dogowner5 said:

I’m starting to wonder if you are some sort of joke bot gradually ramping up the ludicrousness to see how long people will engage.  (You probably are not but there is a doubt in my mind)

 

[Dogowner5]

Just because he says it doesn’t make it so.  I have no wish to debate this.

[Wandering_Dog]

2 hours ago, Dogowner5 said:

Just because he says it doesn’t make it so.  I have no wish to debate this.

You can disprove it any time, just show your work.