For years operated both in the United States as well as in the EU, a very loose monetary policy. This made it to raise the banks, while easy liquidity and cheap funding, caused new problems. How the FED fueled now more the vicious circle of expansionary monetary policy, and these are also bullish Bitcoin News, you will find in this article.
Contents
What is Quantitative easing & is quantitative easing?
Quantitative easing (or QE of English quantitative easing) is an unconventional increase in the money supply by Central banks, which is actually only used temporarily, and usually to the rescue or support of weak banks.
Quantitative Easing is used when interest rates have already been reduced greatly or down to zero. The Central Bank buys government bonds or Bonds and pumping to supply new money into the banking sector with additional liquidity and stimulate the economy.
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In recent years, more and more Central banks, such as the USA (FED), Japan and the UK operated with this strategy. The European Central Bank also followed recently, Quantitative easing. For us, the interesting Bitcoin could be News, because QE is usually a sign of the instability of the banks. Even the Chairman of the US Central Bank Federal Reserve (FED) referred to Bitcoin as a Store of Value.
Bullish Bitcoin News by the increase in the money supply
The well-known crypto-Influencer ‘PlanB’ is asking on Twitter why the FED is pursuing now back to QE with negative interest rates, although the banking crisis is already 10 years back. His guess is that the FED has any more information than we do. The problems caused by QE, are now fighting back with QE. A Vicious Circle. Before us, therefore, a further banking crisis?
Many critics of QE are Gold and crypto supporters, because these are decay sure. The FED produces bullish Bitcoin News for us, because a weakening of the national currencies of the Bitcoin plays into the hands. Also, the CEO of BitMex is convinced: Bitcoin News, as the QE of the FED are an indicator of our broken financial system.
Central banks started quantitative easing (QE) & negative interest rates as a temporary measure to bail-out banks 10 yrs ago after the financial crisis..
WHY are they starting QE again now, is there a new crisis, are banks in trouble, what do they know that we don’t? #debasement pic.twitter.com/BPLzK566m1
— PlanB (Jan/3➞?) (@100trillionUSD) December 29, 2019
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