EU has joined in with 826bn. Globally over 10tn has been printed

[Thasins61]

The European Union has revealed its intention to raise up to $ 850 billion to its members to fund their recovery from the economic meltdown.
Before this package, the European Union approved a stimulus package worth 540 billion euros.
The new packages will give the European Union the ability to raise taxes directly, potentially causing inflation in Europe and beyond.

Countries like Japan, which released the $ 2.2 trillion package, and the United States, which passed $ 2.3 trillion, made a refund package.

Buy Bitcoin https://beincrypto.com/eu-unveils-new-750bn-euro-covid-19-recovery-plan/

[so98nn]

Good article to read.

I was wondering at first how its associated with the Bitcoin but at the end everything was making sense. It's all about the store value of bitcoin and how steady it is. I guess EU's move to release new stimulus package is very obvious and the inflation is sure shot since things have been upside down with the covid situation.

Things will get more costly as businesses has hampered a lot and most of them are shut completely due to unprecedented situation and their overdraft bank accounts.

For bitcoin these things will never matter, since no business drives its value. It's only money influx from the global investors which will drive its price. As of now, it's steady because neither investors have pooled out neither new are added. 

[batang_bitcoin]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

[PavelMed]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.

[batang_bitcoin]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.

The time table is undetermined. We don't know how long all of us will have to go through this pandemic and economic crisis. However, the local and traditional markets like stocks somehow are surviving but the rise of cryptocurrencies are giving most people the idea where they should give the focus. Unemployments and companies that are cutting the number of their employees are happening almost in every parts of the world. You may not understand the effects of it but soon you will.

[electronicash]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

I don’t know how it affects us. But already concerns the growth of unemployment. It’s scary to think how long it will take. Both bitcoin and cryptocurrency seem more stable. than the rest of the world.

The time table is undetermined. We don't know how long all of us will have to go through this pandemic and economic crisis. However, the local and traditional markets like stocks somehow are surviving but the rise of cryptocurrencies are giving most people the idea where they should give the focus. Unemployments and companies that are cutting the number of their employees are happening almost in every parts of the world. You may not understand the effects of it but soon you will.

every country has to do it to recover the debt of other country who inflates their money. they'd have to keep this going  to show who has more debt between them all and while they keep printing these money. BTC will also keep rising for the value of each fiat currency will keep sinking while they all print more. it has to be done though.

[Coyster]

Countries need these loans in order to restart the economic recovery process, notwithstanding if it'll lead to inflation or not. Many of this worst hit countries are heading into steep recession, so external aids would help to get their economy back on the right track; it wouldn't happen spontaneously, as it'll take some years, but they must start from somewhere and borrowing/printing more money is one step to take.

I read the article and imo bitcoin is somewhat a different "being", it's not so much associated with the global economy and it's meltdown, so there is no way it can be affected in this crisis(except if an unprecedented number of people sell off their btc)and that also doesn't mean it is going to assume the position of fiat as the major store of value.

Bitcoin price is affected in a different way: For example if people start selling thousands of bitcoin off the network and converting it to fiat, and people also stop buying bitcoins, reducing the demand, then bitcoin price can also enter it's own kind of 'recession'; but this global pandemic doesn't affect it 'directly'.

[pixie85]

I expect this great housing bubble to be a well made trap.

People used to buy apartments and houses because they felt like this is the way to save their money from the inflation. Now the inflation is going to increase and even more people will put their savings to work. Next year the EU will increase property taxes and pop the bubble.

[exstasie]

Keep in mind, this proposal first needs to be approved by every EU member nation. Even if it passes, it could take months of negotiations (and changes) first.

There are however signs this has a good chance of approval, much better than previous proposals like coronabonds. Germany (who has long opposed jointly-issued EU debt) took a historic step last week by jointly proposing with France a fund for issuing grants to hard hit countries, to be repaid via the EU budget. That's the model for this EU plan.

https://www.cnbc.com/2020/05/19/coronavirus-french-german-500-billion-euro-fund-a-big-deal-for-europe.html

Even the "Frugal Four" nations (Austria, the Netherlands, Sweden, Denmark) are coming around to the idea of EU loans, even if they are pushing back against the grants approach.

The EU intends to raise its debt ceiling and borrow the money, to be repaid by 2058. ECB money printing is not planned:

Next Generation EU will raise money by temporarily lifting the own resources ceiling to 2.00% of EU Gross National Income, allowing the Commission to use its strong credit rating to borrow €750 billion on the financial markets. This additional funding will be channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058.

https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940

[Wexnident]

Can't exactly blame them for doing as such. The impact of the pandemic was way too huge and families across the countries really need all the support they can get, not to mention that even now, only a select few businesses are being able to run. Various health guidelines are still being implemented, making the workers of various companies go through a cycle of alternating sequence in work, making the profit they usually get taken, halved (at least, that's the case in few places near me).

For the case of inflation though, I doubt EU would just let it develop like that. Seeing as what @extasie said about negotiations happening, I'm pretty sure they'd address this very problem even before they give out the funds needed for the recovery. Besides, it's a loan so to speak, even if the time frame is big, EU should be plenty of capable of paying it back once the Virus effects subside.

[ChrisPop]

Fiat is being printed all over the world. There's no way to avoid that, but to revolutionize the monetary system like it happened with the Gold Standard. I still find it quite bizarre to use such advanced technologies like AI and automation and we can't come with a more effective system.

Well, for the educated people the current system is ok, as they quickly dispose of their cash and buy assets that act as a hedge against inflation.

[sheenshane]

I don't see any direct correlation of Bitcoin to the 826 billion euros recovery plan though, as experts said that Bitcoin has shown stability on its value in a short span of time it only means that most of them are now seeing the advantages of Bitcoin and how it can be useful in the economy in times of crisis like this pandemic.

In regards to the inflation and unemployment rate, we can't really avoid that for every economy around the globe are severely ill right now and the only hopes that every government has is through debt. However, we probably also suffer from it but instead of witnessing our economy die then better to take advantage of these loans and we all just need to work hard and strive for the recovery of our economy. Someday, all countries in the world should really work hand in hand regardless if there's any hidden agenda by some but that will make it all countries get unified to raise from the worse situation brought by the pandemic.

[overttherainbow]

EU is trying to do thier best to save the situation

[Gozie51]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

As much this support and printing of money is going on but at the same time it can lead to inflation because economically if too much money is in the system circulating, the liquidity can increase inflation because prices will go up too. Maybe the other thing to do is to increase level of tax but that too will affect the middle earners and lower income people also. Money can come in but gradually circulating will be better.

[fabiorem]

It 1/10 of this money is injected into bitcoin, the price will skyrocket to 100k.

[coolcoinz]

EU is trying to do thier best to save the situation

By devaluing their own currency? I know that this seems to be the easiest way, but there's always someone that loses, they're just making a switch so that the minority of rich people with a lot of savings lose and the majority of poor voters who could take the streets in a SHTF situation get some money. They're stealing from the rich and giving it to the poor by printing more money and increasing welfare.

[batang_bitcoin]

Every country that's been badly going through the economic fall because of the COVID19 pandemic has to do these things. Some other countries have already asked the World Bank to loan millions of dollars to their economic recovery. Some countries did already have made their loans through China debt trap. It's very usual to see each big country helping each of its allies sending millions of dollar for the recovery fund. Like US dollar, sent and offered around $100M - $150M to some of its allies but why is it that there's too much loans are still going in for those countries. We, citizens will have to suffer the consequences not just with taxes and as we recover, we have a debt to pay.

As much this support and printing of money is going on but at the same time it can lead to inflation because economically if too much money is in the system circulating, the liquidity can increase inflation because prices will go up too. Maybe the other thing to do is to increase level of tax but that too will affect the middle earners and lower income people also. Money can come in but gradually circulating will be better.

It's what we're all expecting. The unstoppable printing of money will actually lead to inflation and that's what most people who are watching out the economy are scared of. But this is inevitable and we are in a situation that this is the last resort that each country should do.
What you are saying about the tax increase is about to happen and I've seen countries like in the Middle East have already considered it. IIRC, US and EU countries as well.

[Cnut237]

The response to the crisis has once again thrown the inadequacies of the fiat system into sharp focus. In theory it should give a huge boost to bitcoin, but in practice we are probably not there yet. Bitcoin is still seen as a speculative asset rather than a rock-solid safe-haven during times of economic turmoil.

But economies are going to continue to suffer, the 'new normal' of social distancing is going to be with us for some time, many businesses are going to either fail or get further emergency payouts. And whole industries remain in trouble - restaurants for example, many have said that a social distancing seating plan is going to reduce customer numbers to such an extent that they will have difficulty breaking even, let alone running a profit. Arguably the best way out of this is massive spending on a green economy. Austerity - in the UK at least - is not really an option, services have been trimmed back so far over the last decade that there is nothing more to cut.

However governments respond, the case for bitcoin will continue to grow as a result of this pandemic.

[FanEagle]

USA is dealing with yet another for 2.4 trillion as well, that is going to tally theirs up to over 4 trillion printed. However, people are not realizing how small that is for bigger nations to cover compared to smaller nations. For example if you are some third world nation and print out 1 trillion dollars worth of money to your nation, that is going to make your inflation skyrocket like crazy.

But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.

[enhu]

EU is trying to do thier best to save the situation

By devaluing their own currency? I know that this seems to be the easiest way, but there's always someone that loses, they're just making a switch so that the minority of rich people with a lot of savings lose and the majority of poor voters who could take the streets in a SHTF situation get some money. They're stealing from the rich and giving it to the poor by printing more money and increasing welfare.

That is why some rich today are buying companies too. I have a Chinese friend whos buying fitness gyms these days in the malls. That's the way for them to avoid losing value to their money. It's the savers that suffers.

USA is dealing with yet another for 2.4 trillion as well, that is going to tally theirs up to over 4 trillion printed. However, people are not realizing how small that is for bigger nations to cover compared to smaller nations. For example if you are some third world nation and print out 1 trillion dollars worth of money to your nation, that is going to make your inflation skyrocket like crazy.

But when USA does it, that is alright for them because they can cover it. It is still a lot, it is still affecting the nation, it is still bad for the economy, but there is a huge gap between "we are going to live a bit more poor from now on" and "we are bankrupt and our money worths nothing" levels. Hence do not be worried all that much, it is going to suck and be bad for a while, but it is not going to belly up like you might imagine.

They really need to print more of it because 4Trillion is just not enough to provide for the people. If every release of money is announced to 4 corners of the world and they are just doing it bits by bits, it will sound the worse but if they print 100Trillion with just one news cover for the entire 6 months, that's fewer announcement that won't make people panic.