BTC Sessions - Fed Now Printing UNLIMITED Money, Trillion Dollar Coins, Bitcoin Monetary Policy Unaffected EP032

Episode Date: March 24, 2020

SUPPORT THE SHOW: Visit LEDN to check out getting a bitcoin-backed loan https://platform.ledn.io/join/0a00cca3dd61dea5909c95cd41f41685 Paxful online Bitcoin marketplace: http://bit.ly/2HYQnOG Paxful Tutorial: https://www.youtube.com/watch?v=QyKJvjzLmag Built With Bitcoin: https://builtwithbitcoin.org/ Get Wasabi wallet and enjoy your privacy https://wasabiwallet.io/ Wasabi Tutorial https://www.youtube.com/watch?v=ECQHAzSckK0 Get NORDVPN to protect your online privacy. 75% off a 3 year https://nordvpn.org/btcsessions Check out my website for private bookings: http://btcsessions.ca/ Join my Telegram channel! https://t.me/btc_sessions If you value my work and would like to send me a tip, they are always appreciated! LIGHTNING tips: https://tippin.me/@BTCsessions SHOW RESOURCES: Fed announces unlimited QE, amongst other programs to “fix” the economy https://www.cnbc.com/2020/03/23/fed-announces-a-slew-of-new-programs-to-help-markets-including-open-ended-asset-purchases.html The Federal Reserve’s reaction to this crisis is exactly why Bitcoin was created https://decrypt.co/23317/feds-infinite-amount-of-cash-is-biggest-argument-for-bitcoin-yet US Politicians propose minting two $1 TRILLION dollar coins, then sending cash to every American https://decrypt.co/23219/trillion-coin-fed-treasury-coronavirus Bitcoin halving countdown https://www.bitcoinblockhalf.com/ Crypto exchanges are one business thriving with the market turmoil https://cointelegraph.com/news/crypto-exchanges-made-a-killing-during-the-ides-of-march Mike Novogratz says this NEEDS to be Bitcoin’s year https://cointelegraph.com/news/this-will-and-needs-to-be-bitcoins-year-says-mike-novogratz Wasabi Wallet allows you to automate mixing coins directly into cold storage https://medium.com/@nopara73/how-to-move-funds-from-wasabi-wallet-to-a-hardware-wallet-ec07ea0b4999

Wasabi wallet. I'm fairly private. What's up everyone? I'm Ben with the BTC sessions and this is your daily session. Before we dive in, of course, shout out to sponsors of the show, leaden.com. This is where you can use your Bitcoin for a few different services. They've got their Bitcoin savings accounts where you can earn interest on your Bitcoin. They've got their Bitcoin back loans. And this was actually the The first service of theirs that I ever used, it was around this time last year. I was in a pinch and I needed to get my hands on dollars. And so I didn't want to sell my Bitcoin because I was worried I couldn't buy it back later at the same price. So what I did was use my Bitcoin as collateral, got a Canadian dollar loan, although U.S. dollar loans are available as well.

And I was able to get my hands on those dollars, pay them back at a later date. And for me, it worked out quite well because the price of Bitcoin went up from the time. time that I got the loan and I definitely would not have been able to buy back that much Bitcoin that easily. So be sure to check that out. And finally, for you, Bitcoin Bulls out there, you can check out their B2X offering. This is where you use your Bitcoin as collateral to get a loan and then immediately use the loan to buy more Bitcoin effectively doubling your Bitcoin on the spot and thus giving you the ride of the price fluctuations that comes with that. If you want to check out any of these, there's a link in the show notes down below, and if you opt to get a Bitcoin back loan,

they'll actually credit your account with an additional 50 bucks worth of Bitcoin, so do check them out. And secondly, we have Paxful. This is an online peer-to-peer Bitcoin marketplace where you can buy and or sell Bitcoin. Now, if you're looking for maybe some less traditional payment methods, there are a ton of different ones on here. In fact, they have over 300 different payment methods. Now, they do have the regulars like bank transfers and e-transfers. They have all the major apps that you can use like PayPal and cash app, but then they've also got some different payment methods like paying for Bitcoin using gift cards. So you can always check that out. And secondly, on the flip side of that, if you're looking to make some money, you can always become a

merchant and buy and sell Bitcoin on the platform by actually setting up your own offers and make some money on the spread there. Outside of that, they've got a killer affiliate program. You can buy super cheap gift cards on the site and be sure to check out their initiative built with Bitcoin. Their mission is to build 100 schools entirely paid for with Bitcoin, which I think is a lofty and wonderful goal. With that, let's dive into the news. I'm at a loss for words here. absolute insanity coming out of the Federal Reserve. They have more or less announced unlimited quantitative easing, unlimited money printing.

They will buy everything and anything as it's needed. So they announced a whole bunch of different programs to keep the market functioning. But essentially, what it boils down to is they will buy any assets as needed in order to keep the market afloat. They've also opened up some other programs for business lending for Main Street to keep a lot of credit flowing. And for the first time, they're going to be buying corporate bonds, essentially buying up these securities in primary and secondary markets through ETFs. So more or less, the takeaway here is that they're turned the money printer on and they have no intention of turning it off anytime soon.

This on top of the repo market announcement over the weekend or maybe before the end of the week where essentially they are injecting $1 trillion worth of liquidity into overnight repo markets every single day this month. One trillion dollars a day for the entire month. I just don't even know what to say here. It's, I don't see how we come out of this okay. I don't see how the Federal Reserve and the economy, as we know it today, comes out of this okay. Anyways, yeah, basically there's an infinite amount of cash as quoted by the Minneapolis president of the Fed.

And again, a lot of Bitcoiners are saying this is exactly why Bitcoin was created. to be an opt-out of this absolutely insane system that just seems to be picking up steam and about to roll off a cliff. So, yeah, I'll read a little bit from this decrypt article here. President of the Federal Reserve Bank of Minneapolis, Neil Kashkari, said the Federal Reserve has an infinite amount of cash in response to worries over the stock market collapse. Speaking on 60 Minutes, Cashkari said, there's enough cash in the financial system. There's an infinite amount of cash of the Federal Reserve.

We will do whatever we need to do to make sure there's enough cash in the banking system. Unbelievable. Again, this in the face of Bitcoin about to come up on the halving. So we're tightening monetary supply and they're just letting loose like nothing else. And the crazy thing about this, in the face of the Fed announcing that essentially it's turning on the spigots and just letting the money flow unlimited and they will buy up anything and everything the stock market still did not react favorably to that it did have a little bit of a spike in the futures markets prior to opening but then quickly after opening it started dipping again and it ended the day the Dow was down 582 points was around 3%. The S&P 500 was down around 67 points, which is just shy of 3%. Yeah, all around just red across the board more or less here. I don't see any green from all the major world indices.

And what do you even say? What do you even say to this? It's a complete loss of confidence in the system. They're saying that they will buy anything and everything to prop up the stock market and do whatever. whatever it takes and the market is still saying, I don't trust it. I don't think it's going to work. And this wasn't the only crazy thing to come out of the U.S. this past weekend or the past few days. This idea was being floated for getting money to individual Americans. The idea to print

trillion dollar coins, two of them. And I'm not even fucking kidding. This is the idea. So U.S. Representative Rashida Tlias, I'm not sure how to say the last name. Thinks that the government should print two one trillion platinum coins to help the economy deal with the coronavirus. So this is how it would work. The treasury would ask the U.S. mint to issue the coins, whereupon the Fed would immediately buy them at face value, which would be $1 trillion each for two of them.

Then the Treasury, now $2 trillion richer, would provide the Bureau of the Fiscal Service with access to the funds, the Bureau would distribute the cash to every person in America in the form of a prepaid U.S. debit card. And then the quote here, this approach would preserve the historical separation between fiscal and monetary policy and avoid financial entanglement between the Treasury and the Federal Reserve, which would eventually undermine the independence of the Fed, states the proposal. It's important to note with the proposal we will not require the government to issue more debt.

the government is already considering sending citizens checks as part of a different measure, but this is just another proposal for it. So the interesting part of this is the idea would be direct payments initially. The first-time payment would be $2,000 cash cards to every single American, and then $1,000 a month after that until a year after the economy recovers, which God knows how long that's going to take. Now, the interesting thing is they said they wanted to print two, one trillion dollar coins, and this is the plan.

So let's just say the economy recovered immediately after the first funding. How much money would be required there? This is absolutely hilarious. Jimmy Song, in a single tweet, just broke down the cost of just that if the first $2,000 check hit all Americans, and then right away all of a sudden the economy was immediately better, and they went forward with their plan to still pay $1,000 a month for a year after the recovery, which would have been the day that those first checks go out, which obviously wouldn't happen.

Anyways, Jimmy Song said, let's do the math. 300 million people times $2,000 a person. By the way, he's being generous here because there's like 330 million people in the U.S. Anyways, besides the fact, 300 million people times $2,000 a person is $600 billion. initial cost. 300 million people times $1,000 per person per person per month for at least 12 months equals $3.6 trillion. You're going to need to print more trillion dollar coins.

This sort of thinking is exactly what leads to hyperinflation. Again, so she proposed printing two coins and then moving forward with this plan that she said, okay, $2,000 for everyone and $1,000 a month for at least until a year after everything is better. And even that initial plan, if everything was fixed immediately from the first check, would cost over $4 trillion, and she only just printed two out of nothing. This is the insanity that's happening right now.

The idea that, you know what, we don't even need to get into debt. What we'll do is we'll just print the money. We'll just issue the coins. We'll make two coins. We're going to say that they're worth a trillion dollars each. And then the Federal Reserve says they'll pay us actually a trillion dollars each for those two coins because we said they're worth that. Right. So face value.

And then we'll just divvy that money up to everybody. I, guys, I feel like I'm taking fucking crazy pills. It's insane. I don't understand how anybody can look at this and be like, yeah, that's okay. That sounds like a good idea. That's how things should work. Okay, so the one thing here that I worry the most about is QE back in 2008, 2009, they took that money. They bailed out all of these banks and corporations. That money was then given to the corporations.

They used that to buy back their own shares and prop up their own stock price. They also pumped it into other equities. So we got this massive bubble in the stock market. but the inflation because of the newly created money was very much stuck within the equities markets, which is why we saw this massive stock market bull run and bubble for the past, you know, 12 years or so. That's why we saw that because all of that money was self-contained within the stock market more or less. But when you get into the idea of printing trillions of dollars and dumping that immediately into the hands of retail individuals and just everyday people,

that has an immediate effect on the price of goods and services in everyday life. And while initially maybe that first check, those first few checks, you may not notice that much of a difference, but it doesn't take long for retailers to clue in and say, hey, everybody just got $2,000 for free, every single person in America. What are they going to spend it on? And yes, some will need to spend it on just their bills, especially initially. Then maybe that gets the economy flowing again, people get working again. But all of a sudden, there are trillions.

And in this case, the plan at minimum is another $4 trillion dumped immediately into the hands of everyone. It doesn't take long once people start working for the cost of consumer goods to skyrocket. And if that, my guess is that that type of universal basic income, they wouldn't be able to turn it on because people are going to become accustomed to it. And when they start not getting it, they're going to stop spending money and it's going to again grind the economy to a halt if I had to guess. and so going down this road it's hard because on on the for faith value here you're looking at it and you're saying people are losing their jobs how do we help them and and people look and say well we need to we need to get relief to people and I do understand that but you're stuck between a rock and a

hard place because either you're going to pay the piper now or you're going to pay them later and paying them later is not going to be any less painful I just, there's no easy answer other than maybe opting out. And again, in the face of all this craziness, look, the Bitcoin block reward having countdown marches on. There is a block every 10 minutes, 12 and a half Bitcoin created every 10 minutes. And in about 50 days, 16 hours and some change at the time of recording this video, that issuance is going to be chopped in half. at a time of unprecedented money printing where the spigas have just been turned on full blast and they literally central banks around the world are saying we will spend and create unlimited amounts of money

Bitcoin is doing the opposite flipping the bird to everyone else and saying we're tightening supply we're we're chopping it down there's going to be less going around there's going to be less coming into the market and we're going to keep doing this every four years. I think this is really going to turn some heads. I think that for all of this to be culminating in and around a Bitcoin having is the craziest juxtaposition of completely the antithesis of each other, Bitcoin sound money, which cannot be changed, and central banking systems, which are just,

fiat garbage that are just steamrolling everything and and creating more and more money and malleable as hell like the drop of a half look at what happened in the past couple of weeks how many trillions have been created out of nothing it's astounding to watch and i this is why bitcoin was created but it's also scary to watch i don't know if you guys are feeling the same but anyways um anyways in in the the craziness that is what the world is right now, a lot of businesses are hurting. But one type of business that is not hurting are crypto exchanges. They have made a killing this month as to be expected because crypto exchanges, they make money off of volatility.

When people are trading, they're making a little cut off of that every single time from those trading fees. And so, you know, massive, massive spikes in volume. BitFinex alone, which was the biggest spike in volume, had a spike of nearly a thousand percent this month. So they've done quite well from themselves. Trailing that, you have BitStamp in next around 654 percent, Coinbase 674, crack in at 478, and then all the others kind of grouped together, another 189%. Funny enough, there's actually a correlation between the price movement and exchange volumes. and it's negatively correlated to the price,

meaning that when the price is going down, the volume is actually going up. And there's no way to say for sure, but my inclination is to believe that when the price is going up, people are more inclined to hold on to what they have and they don't want to trade it away. Whereas when it's going down,

they're trying to seek out a better deal of maybe this one will go up instead, or maybe they're trading out to tether to something that's going to remain a U.S. dollar. So yeah, it's pretty wild, but hey, people like to roll the dice, I suppose. I'm more of a buy and hold kind of person myself. Let's move on here. Now, Mike Novagrats came out the other day, and he said that this will and this will and needs to be Bitcoin's year. So he's talking about Bitcoin in the face of everything that's happening right now. He said, BTC will continue to be

volatile over the next few months, but the macro backdrop is why it was created. This will and needs to be Bitcoin's year. So I agree and disagree with the sentiment. One, all Bitcoin needs to do is survive. It was built for this. I'd say it's faring pretty well, regardless of the dump that we experienced a week and a bit back. It's now starting to go the opposite direction of everything else. now that we shook out the weakest hands and the people that were over leveraged. But even if Bitcoin didn't have a stupendous year, even if it just continued to function reliably, as it always does, it would be fine because Bitcoin doesn't care.

Bitcoin doesn't know that there's a crisis happening. Bitcoin just continues to function as intended. It continues to pump out blocks roughly every 10 minutes. and continues to issue 12 and a half coins every 10 minutes until that gets cut in half. The monetary policy cannot be touched. And I think even if people don't rush to Bitcoin as a hedge against the current system in the short term, that doesn't matter because the underlying principles that govern it cannot be changed. It cannot be debased.

And even if this year it didn't experience a massive boom, which who knows it could but even if it didn't it still stands in stark contrast to everything else that is happening right now so while i appreciate the sentiment i do disagree that this has to be the time when bitcoin shines it just needs to be it just needs to be there it needs to exist and continue what it's doing and it will so anyways uh one last thing i wanted to update really cool pull request that was implemented with Wasabi wallet. Again, if you're not familiar with Wasabi, they are obviously a sponsor of the show as well. This is a wallet that you can have on your desktop, which helps break the links between you and your coins and afford you some privacy.

So they just added a pull request. Now, this is only available to be used in Terminal right now, so it's not yet built into the wallet UI. But I imagine that will be implemented. eventually, what it allows you to do is in the process of mixing, you can mix directly to a separate wallet, like a hardware wallet. So you can load coins into wasabi, set the amount of anonymity you want to achieve, and it will continue mixing them until reaching that level. And once it knows it's going to reach that level, the next output from that coin join will be going to the extended public key of whatever wallet you like. So you would just import the expub of something like a treasurer or a ledger or a cold card and you would say, I want it to go to the next address in line on this wallet.

And it will do that for you automated. You don't need to mix and then move to cold storage on your own. So really cool to see these iterations coming out for wasabi. I do love using Wasabi. Be sure to check them out, of course, as always. Now, with that, I will wrap up, you guys. Thank you so much for watching and or listening. If you're watching this on YouTube, do hit like, subscribe, and share. And if you're listening on the podcast, audio only, do share it on your social media. And more importantly, give this a review on the platform you're listening to it. Hopefully a good review, because the more you do that, the more visible it is to others. Now, if you want to help with the show in another way, you can hit the sponsor.

down below that I mentioned, that was leaden, packsful, and of course, Wasabi Wallet down below. And if you really liked what you saw, you can always drop me a Bitcoin Lightning Network tip at my tippin.me page, that's tippin.combe slash at BTC Sessions. With that, I'm out. Have a wonderful rest of your evening, guys, and I will see you next time for your daily session.