Differences between the Two Recent CrashesColin Baseman
Inflation of the U.S. currency’s M2 money flow is rampant and its supply is just now enriching the so-called ‘cantillionaires’. Many crypto market analysts are now studying the current situation and comparing the most recent movements occurring across the crypto community with the ones we can see in the traditional markets.
The top-ranked cryptocurrency as well as the dollar’s velocity has crashed. However, the crypto’s price might have reacted in a different way. One of the most prominent experts Max Keiser keeps analyzing the latest trends – he stays critical and doubtful regarding a few major points while velocity seems to be hitting record lows.
It’s true that at present there are more U.S. dollars than the traditional market has ever had before. On the other hand, the rate that the dollar circulates around the country’s economy has hardly ever been this low. Furthermore, the mass media outlets announce that theFederal Reserve has presented its own official statistics a couple of days ago where we see that there was a significant collapse in M2 money supply velocity – according to the data, it had brought a crash even though some pointed to record money printing.
What many participants have noticed is that there has also been a steep rise in the ‘cantillionaires’. Eventually, the M2 supply topped eighteen trillion USD this year due to the countermeasures taken to resolve the issues after the post-pandemic period. At the same time, the market witnessed how velocity dropped this low for the first time since the early 1940s.
Analysis and Further Expectations
The year 2020 has finally marked a visible contrast to historical statistics with unexpected volatility and this includes both metrics. Analysts state that the latest tendencies might look rather disturbing to the majority of customers. As news agencies report, the record low means that there might appear a massive amount of liquidity.
Nonetheless, this can hardly be the main reason to worry about the economy. One explanation that clears up the matter is that the extra cash stays on the government’s balance sheet after its operations. This indicates that parties seeing all of the impact are individuals remaining closest to the very source of the cash.
Max Keiser believes that this process might be turning many beneficiaries into a totally different tier of the whole system which is now called ‘cantillionaires.’ Here is a chart that reflects the real situation and explains what is going on. According to the analyst, trillions of U.S. dollars are being printed. However, all this money is not yet circulating. As a result, the money is boarded and this is done only by those who appear to be closest to the printer.
It’s essential to mention that the top-ranked cryptocurrency supply charts illustrate the real investment mindset. Money printing has been one of the most discussed topics in the past few weeks. On top, the press is studying the velocity crash. Many users remark that the country’s currency is moving around lows against top assets.
On the other hand, across the EU, a return to negative inflation seems to be approaching, even though there is a specially developed money-printing scheme – that’s the program offered by the EU Central bank. Commentators state that this project didn’t manage to achieve its set goals.
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