Arthur Hayes comments on Federal Reserve’s potential money printing

03/12/2023 02:56 • Metaverse Matters • 91 views

On March 12, Arthur Hayes, founder of BitMEX, commented on the fact that the Federal Reserve was considering setting up a fund to guarantee deposits in the event of more bank failures, saying that it was getting closer to the start of the money printing machine. Remember that they first tried the Troubled Asset Relief Program in 2008? The market continues to fall and financial institutions continue to go bankrupt. Then they finally turned on the money printing machine. I guess it may follow a similar trajectory this time. Let’s see how big the rocket launcher is.

Arthur Hayes, founder of BitMEX: More banks will fail or the Federal Reserve will restart the banknote printing machine

Analysis based on this information:

Arthur Hayes, the founder of BitMEX, weighed in on the Federal Reserve’s consideration to establish a fund that would secure deposits in the event of bank failures. He noted that this move would bring the Fed closer to the beginning of the money printing machine. In 2008, during the financial crisis, the Troubled Asset Relief Program was implemented, but it didn’t prevent the market’s fall and financial institutions’ bankruptcy. Eventually, the money printing machine was turned on, and Hayes suggested that history may follow similar steps this time around. He added that it remains to be seen how powerful the rocket launcher will be.

Hayes’ message highlights the potential repercussions of creating a fund to secure deposits. By doing so, the Federal Reserve is recognizing the possibility of more financial institutions failing, leading to a loss of confidence in the banking system. The Troubled Asset Relief Program failed to prevent the financial crisis, and the Federal Reserve may have to rely on monetary policy measures to inject liquidity into the economy, effectively printing money.

Hayes’ reference to the money printing machine has a symbolic meaning. Theoretically, the solution to the economic problems could be solved through traditional monetary policy measures, such as adjusting interest rates or engaging in quantitative easing. However, the power of the money printing machine implies an unconventional approach to monetary policy that disregards traditional monetary authorities like central banks. Instead, it empowers governments to fabricate or generate money out of thin air, effectively subverting market forces and manipulating supply and demand.

In conclusion, the potential for the Federal Reserve to set up a fund to secure deposits indicates the fragility of the banking system. Hayes’ comment on the money printing machine suggests that history may repeat itself, and the government may have to resort to unconventional monetary policy to prevent a financial collapse. This interpretation underscores the importance of transparency, accountability, and responsible financial management in preventing another financial crisis.

Overall, the keywords BitMEX, Federal Reserve, financial crisis, money printing, and bank failures all contribute to the message’s central idea, which emphasizes the potential dangers of an unstable banking system and the need to examine alternative monetary policies.

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