$175 billion just printed and the Bitcoin price goes down!

[fillippone]

yet the economy is still on pace producing record unemployment numbers and stock prices.

This is a poor way to measure the economy. Sure, unemployment is down, but wages are stagnant and record numbers of people are working two jobs just to make ends meet. As discussed above, stock prices are up because they are being pumped up by the Fed.
[/quote]

Realising the economy is not the stock market and the unemployment numbers is a feat of thinking into why is daily conveyed via mass media.
Stock market is pumped by QE, and effects are tangible only for those who. An afford to invest into it and are not trickling down toward the real economy.

Unemployment numbers are good, but they fail to intercept the slack labour force (underemployed) or those who drop out the actual labour force the self.

US economy is buying less than 3% GPD growth with massive budget deficits: coupled with QE this is a recipe for disaster when the fiscal stimulus become ineffective.

Why it is working? Because, as a blocks from HSBC told us, “dollar is the best of the bad bunch”: money is continuing to flow into the US economy because the others, in laymen’s terms, are worse.

Brace yourself, this cannot go on forever.

[AniviaBtc]

No, I don't think this is a trap. because I see that this is the rule of the financial market. In which markets are beneficial, the whales will usually go there and eat their prey, after the food runs out, it will return to the starting point.
This is also a good signal to buy more bitcoin and hold, it is about to grow again!

But it is very sad that the bitcoin price goes down, it is better if we see bitcoin with a constant and having a higher price. Isn't that beautiful to become more confident about bitcoin without uncertainty? Printing billions of money really affects its price because the demand is getting higher. They seize the moment when the bitcoin is enough for them to made it in fiat. Fiat currency is much able easy to use if they print a lot if it.

[sana54210]

I am not from USA so I am not really as knowledgeable as the rest of you on this subject but considering USA says they are having "the best financial time" since Trump started his term, could we just assume they were basically postponing the bad parts of economy for later and screwing it now?

Obviously, it went down as we can see from the chart, what we are judging right now is the big uptick in the balance sheet but if you look at it since December of last year it has been going down steadily very well and now its going up once again. I don't know which one is better but we can say that whatever has happened has reversed back in the past two months for sure. I hope american economy goes better but not too much better because a strong dollar is good but strongest ever means our currencies devalues.

[fillippone]

I am not from USA so I am not really as knowledgeable as the rest of you on this subject but considering USA says they are having "the best financial time" since Trump started his term, could we just assume they were basically postponing the bad parts of economy for later and screwing it now?

Obviously, it went down as we can see from the chart, what we are judging right now is the big uptick in the balance sheet but if you look at it since December of last year it has been going down steadily very well and now its going up once again. I don't know which one is better but we can say that whatever has happened has reversed back in the past two months for sure. I hope american economy goes better but not too much better because a strong dollar is good but strongest ever means our currencies devalues.

I am not from the USA either, but I think this is exactly what they are doing.
They are screwing up the economy, using printer money to run larger and larger deficit, buying less and less growth and using the wrong metrics (SPX, NAPM jobs reports) to describe the economy, while the "real" underlying economy is in way worst condition.
Dollar is holding because other major currencies (EUR and GBP primarily) have they own problems and they are printing money too.

This is not going to end well. I don't know excactly how and when. But I know bitcoin will be an hedge against it.

[o_e_l_e_o]

but if you look at it since December of last year it has been going down steadily very well and now its going up once again. I don't know which one is better but we can say that whatever has happened has reversed back in the past two months for sure.

If you zoom out it becomes much more stark. Here is the Fed's balance sheet since 2003:


It was only towards the end of 2017 the Fed started to wind down and undo all the extra money they pumped in to the system during the global financial crisis. They had planned to continue on that trajectory for some time, but something they are not telling us about has happened which has forced them to start pumping new money back in. As you can see from the graph below, over the last month we have now seen the largest increase in their balance sheet in over 10 years, since the 2008 crisis.



The last time banks had this much of a liquidity problem, several folded altogether and we spent years picking up the pieces. As fillippone says, this can only end badly, but no one knows when.

[LUCKMCFLY]

According to the Fed, they have had proposals to combat the problem of negative interests, but there is no way they can put on makeup, I think it is now clear that they are reaching a point of despair where they will opt for Blockchain and Cryptocurrency technology, Because the debt is extreme, in the USA the debt is maintained, but it is not taken into account because the dollar is handled, and it must be recognized that there is still the hegemony of the dollar, but the numbers do not lie and are increasing the debt much more , it is clear that they must already look for solutions that are not for the normal ones of traditional economy.

In an article I read that in 1980 with 100USD a market with many products was made and that it was enough, nowadays if the market of the same magnitude is made it must be with 2500USD, inflation has somehow made up it by means of many strategies, it is obvious that when cash bills are printed inflation wreaks havoc, with Blockchain and cryptocurrencies this changes, the clearest example is Bitcoin, it has a deflationary economy and a finite supply limit, which obeys the Offer Law -Demand, and its value given to technology has been increasing, is considered digital gold.

[o_e_l_e_o]

where they will opt for Blockchain and Cryptocurrency technology

Don't be silly. The Fed is never going to abandon the dollar, something which they can control and print at will, for a decentralized cryptocurrency they have no say over. Doing so would be completely antithetical to their very purpose. The whole point of the Fed is to manage the money supply, stabilize prices, control interest rates and inflation, and so forth. They can't do any of that with a currency they don't control. They might as well close themselves down.

[Yatsan]

I am not from USA so I am not really as knowledgeable as the rest of you on this subject but considering USA says they are having "the best financial time" since Trump started his term, could we just assume they were basically postponing the bad parts of economy for later and screwing it now?

Obviously, it went down as we can see from the chart, what we are judging right now is the big uptick in the balance sheet but if you look at it since December of last year it has been going down steadily very well and now its going up once again. I don't know which one is better but we can say that whatever has happened has reversed back in the past two months for sure. I hope american economy goes better but not too much better because a strong dollar is good but strongest ever means our currencies devalues.

I am not from the USA either, but I think this is exactly what they are doing.
They are screwing up the economy, using printer money to run larger and larger deficit, buying less and less growth and using the wrong metrics (SPX, NAPM jobs reports) to describe the economy, while the "real" underlying economy is in way worst condition.
Dollar is holding because other major currencies (EUR and GBP primarily) have they own problems and they are printing money too.

This is not going to end well. I don't know excactly how and when. But I know bitcoin will be an hedge against it.

Would it be a negative towards USD? printing money out of thin air will just weaken the dollar especially on that amount. If feds did really printed those money, injected from the market by buying valuable assets like Bitcoin why did the price go down? putting billion could've significantly affect the price but what happened is opposite. I am very skeptical on what feds are doing now, It coincides with the growing market for BAKKT. I've heard that they supply banks money in a thing that we should know but they refused to, Wall street is borrowing money that seems they are not required to pay. Is this a sign of recession behind?

[fillippone]

Jay Powell testimony in front of the HOUSE comitee today.
A few excerpts about FED REPO's:

In case you missed the point, Powell calls the Treasury bill purchases “technical” three times in his brief discussion. The point: This is not quantitative easing. It’s a technical move.

Please appreciate the sarcasm rom the reporter.

McHenry asking about balance sheet issues.

Powell: The expectation is we will continue bill purchases at least into the second quarter and repo activity into April...to build up reserves to a point where we don’t have to do this regularly.

Powell:

“As the underlying level of reserves rises due to our bill purchases, the need for repo will decline.”

Business as usual, please disperse, nothing to see here.
The reality is , as o_e_l_e_o cynically suggested, is that whatever the FED does, the banks are leaning a little bit too much on the FED liquidity.

[jostorres]

Lol it’s quite funny how y’all hyped this Bakkt so much and at the end it was nothing. The hype was too much in 2019 and a lot of people were even speculating an increase when Bakkt is launched, but at the end it made no single impact. Though I wasn’t surprised, because I knew that there is going to be Halving this year 2020, and I wasn’t expecting any bull run to take place sooner than the halving.

If it’s going to happen, it’s going to be after the Halving and not before it. On the day that Bakkt was launched I heard that it traded only seven Bitcoins. I can already see the price is moving up and after the Halving we should be expecting the next bull run I guess.