The world is facing many economic problems. This runs from the U.S, Europe to Asia. In recent months, we have seen central banks from the largest economies implement tools to cushion the economy from a global economic crisis. However, the problems are relentless and as a Deutsche bank CEO warns, central banks are running out of options to keep protect the economy going. This warning is a boost for Bitcoin which is widely regarded as the safe haven in time of economic turmoil.
CEO of Germany’s Deutsche Bank, Christian Sewing was speaking at the Sibos banking conference in London. He explained how central banks are running out of conventional ways to cushion the market from an economic crisis. Sewing explained that this problem has risen from unpredictable macroeconomic factors that have become unpredictable.
“I’m particularly worried about a series of financial and geopolitical risks, ranging from the situation in Hong Kong to tension in the Middle East,”
A Global Economic Crisis Looks Imminent
Recently we have seen the U.S FED and the European Central Bank ease their monetary policies. In particular, the FED as I reported has been printing billions of dollars in recent days to cushion the U.S economy. The ECB, on the other hand, has cut its deposit rate by 10 basis points to a record low of -0.5%. This came in the wake of a slowing economy and high inflation. China has also not been left out. The government there a couple of months ago cut the Yuan’s value. Beijing weakened the Yuan to below 7 to the dollar. This was in an attempt to keep up with the U.S, of which they are locked in a trade war.
History Repeating Itself?
Just like in 2008, every government is rolling out cheap money and devaluing it. If history has taught as anything is that its when they fight a recession by printing more money that it hits hard. The financial system is corrupt and has been since the beginning. Only Bitcoin can salvage the situation and at the very least protect the world from another global economic crisis.
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