Bitcoiners Have Trillions and Trillions of Reasons to Ignore US Election

The result of the US presidential election next month shouldn't play a major role in the Bitcoin price: Economic stimuli in trillions of dollars probably don't matter who wins, which strengthens the attractiveness of the largest cryptocurrency as a hedge against inflation.
President Donald Trump last week reversed his opposition to a new government spending bill following the $ 2 trillion coronavirus bailout in April. He signaled his readiness to strike a deal with leaders of the opposition Democratic Party who have proposed a $ 2.2 trillion stimulus plan. According to Axios, he told senior lawmakers in his own Republican party that he wanted "a big deal".
If Trump wins in November, he will likely continue to support stimulus spending or the Federal Reserve's loose monetary policy, as he has been pushing the US Federal Reserve to cut interest rates when signs of weakness appear for the past four years, while also leaning on the US - Jobs boasts growth and stock market growth. He could also push for a new round of tax cuts.
Related: First Mover: Stimulus Wins When Biden Goes Up $ 12K In Polls And Bitcoin Eyes
Trump's Democratic challenger, former Vice President Joe Biden, has already launched his own $ 5.4 trillion agenda of budget increases for education, housing, healthcare, paid vacation and the, according to the Wall Street Journal Repairs crumbling infrastructure. The Biden campaign has pledged to cut a significant portion of America's $ 1.5 trillion in student debt.
That spending would add to what already seems like an endless sea of ​​red ink: The U.S. government's fiscal deficit for fiscal 2020 tripled to $ 3.1 trillion. And economists say the Federal Reserve will likely continue to print money in the years to come to help fund the budget gap.
"With the hands of business tied and the hands of policymakers tied, the leeway any party in power will have is limited," said Chris Wallis, chief investment officer of Vaughan Nelson Investment Management, a division of France Financial firm Natixis, First Mover said in a Zoom interview. "There are no atheists in a foxhole. Nobody will worry about deficits."
Wall Street analysts have debated for the past few weeks whether a Trump or Biden win would be better for stocks. What is good for Bitcoin may be easier to determine, as most digital asset market analysts say that the Federal Reserve's $ 3 trillion in freshly printed money this year helped raise prices for the largest cryptocurrency. Bitcoin is up 63% year-to-date, up from 9.4% on the Standard & Poor's 500 index of US stocks.
Related: Bitcoin Eyes $ 12K Prize After 6 Day Winning Streak
Mike Wilson, chief strategist for US equities at Wall Street firm Morgan Stanley, told CNBC on Monday, “No matter who wins the election, by the first quarter we will have an additional incentive that is likely to be needed to ensure that the recovery will continue. ”
Pantheon Macroeconomics' Ian Shepherdson wrote in a report Monday that the next bill is unlikely to come before early February, but "the incentive comes and the longer it is delayed, the bigger it will be" and the more likely the Fed will fund it the additional cost.
"It almost seems like the market doesn't care who wins," wrote Mati Greenspan, founder of forex and cryptocurrency research firm Quantum Economics, in a message to clients last week. "All investors are interested in stimuli that both parties are apparently willing to provide in abundance."
There is still a long way to go before the economy recovers. At the end of September, around 12.6 million Americans were unemployed, more than twice as many as it was earlier this year before the pandemic. And now, some health experts are warning of a new wave of coronavirus cases that could dampen consumer confidence or lead to new lockdown measures that could affect production.
All of the costs required to bring the economy out of its slump could be separated from the ever-growing list of investments required to address pressing environmental and social problems.
According to a report by the U.S. Commodity Futures Trading Commission's Climate-Related Market Risk Subcommittee last month, it could require $ 110 trillion in investments by 2050 to reduce energy generation from high-carbon fuels. That's roughly the equivalent of $ 3.7 trillion a year.
There is also a prospect of costs of reducing racial injustice. Aside from the general injustice of practices such as redlining, voter suppression and police profiling, institutionalized racism undermines the economic potential of the US by limiting opportunities "for large numbers of Americans," argued Raphael Bostic, president of the Federal Reserve Bank from Atlanta, in a speech last month. A study cited by Black Entertainment Television founder Robert Johnson put the estimated cost of reparation for slavery at $ 14 trillion.
Federal Reserve Chairman Jerome Powell has made no secret of his stance that the government must increase spending to fuel the recovery from the coronavirus-induced recession. In a speech last week, Powell said that without further help, households and businesses would face rising "bankruptcies" that could affect "the productive capacity of the economy."
Fitch, the bond ratings firm, wrote in a report Monday that voters see the economy as the main focus of the 2020 election and that a stimulus package of around $ 1 trillion or more is likely to win.
If the federal government doesn't burden the economy with trillions of dollars in spending, traditional stock and bond markets could sell out quickly. And such a drying up of market liquidity could force the Fed to increase its monthly asset purchases or to provide new forms of emergency lending. Currently, the Fed buys $ 120 billion in US Treasuries and mortgages every month, which equates to a pace of $ 1.44 trillion a year.
"This cycle has required unprecedented liquidity support from the central bank and will require significant additional liquidity support if the global recovery deviates from course for any reason," wrote Alan Ruskin, chief international strategist for Deutsche Bank, in a report last week.
The result? For voters, it's a choice between Trump and Biden. But Bitcoin could be a winner either way.
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Bitcoiners have trillions and trillions of reasons to ignore US elections
Bitcoiners have trillions and trillions of reasons to ignore US elections
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Donald Trump
Joe Biden

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