Parker Lewis, head of business development at Unchained Capital, says the U.S. government’s planned cash injections are a clear buy signal for Bitcoin (BTC).
“Every time I hear that billions of dollars in new financial injections are announced, I immediately buy more Bitcoin,” Lewis said in an interview with Anthony Pompliano on June 26. And further: “This is my new keyword and that’s why I’m buying more Bitcoin almost every week.”
Barrel without ground?
In the wake of the Corona crisis, the US government, like many other governments around the world, has taken steps to contain the virus, including social distancing and the controversial lockdown. The restrictions have severely damaged the economy, which is why governments are now promising financial aid packages to counteract this.
Massive financial injection
After the US government recently launched a massive financial injection of 2 trillion. Pumped US dollars into the system, there is now another package worth 1 trillion. US dollar in prospect, which, in addition to helping the economy, would further inflate US public debt.
This money printing consequently increases inflation because new money enters the economic cycle without there being a corresponding equivalent. This in turn devalues existing assets. Lewis therefore poses the rhetorical question in the interview as to how long such a monetary policy can continue.