President Trump is piling pressure on Fed chair Jerome Powell to go further – taking interest rates below zero and weakening the U.S. dollar. Is decentralization the only key to save the US Economy?
May 28, 2020, | AtoZ Markets – The coronavirus outbreak is still a major threat around the world, but one that seems to be subsiding, at least according to recent numbers. However, the US remains the country that was hit the harshest in the world, in more ways than one.
In an attempt to handle the situation during the height of the pandemic, the US President, Donald Trump, and the Federal Reserve went to lengths that were unimaginable only months earlier. However, it would appear that the president is still not satisfied with the measures the Fed is taking to help support the hard-hit economy.
In fact, the situation in the US appears to be spinning out of control, based on the recent news. New reports revealed that last Friday, May 15th, the US House of Representatives approved a $3 trillion bill that the Democrats came up with in order to provide additional help for battling the COVID-19 disease.
Trump Pressured Fed Chair to take Further Steps
Providing this additional help is expected to stimulate the country’s faltering economy, which the pandemic already impacted strongly. The Democrats won the vote with the result of 208-199 in favor of the bill. Even the US President, Donald Trump, opposed the bill. Now, Trump and the Republicans are trying to come up with some new ideas, with the Democrats mostly opposing the solutions that come from either side.
The House Majority Leader, Steny Hoyer, recently announced that another vote is to come on May 27th/28th, and that it will revolve around some coronavirus-related bill, if someone makes a proposal by that time. Meanwhile, the US economy continues to suffer, and so do its 36.5 million of those who found themselves unemployed during the pandemic.
Previously, Trump pressured the Fed chair, Jerome Powell, to go a step further, and make the interest rates negative for the first time in US history.
According to one of Trump’s tweets, he believes that other countries are receiving benefits of the negative rates, and that the US should also benefit from such a ‘gift.’
His stance towards negative interest rates came after their mention of the deputy governor of England’s central bank. The deputy governor stated that negative rates keep coming to mind, as this is something that the EU central bank and Japan’s central bank implemented a while ago.
Implementing negative rates would lead to taxing banks for hoarding cash. But, they also limit the bank lending profits, as well as the interest on savers’ deposits. In fact, gold bug Peter Schiff insists that the inflation created to make negative rates a possibility would hurt wage earners. He stressed that the economy, in general, would be less productive, and living standards would crash.
Jeff Gundlach, billionaire bond king, agreed with this, noting that negative rates would be fatal.
Is Decentralization the Answer?
Of course, no amount of disagreement can guarantee that Trump won’t convince the Fed to follow his suggestions, due to the centralized nature of the financial industry, and the economy itself.
With centralized institutions being in agony, and once again seemingly moving towards failing the people they were supposed to serve, decentralized solutions are looking more and more attractive.
Naturally, that also includes decentralized assets, such as Bitcoin. Where the Fed started printing money with no breaks on, Bitcoin went through halving that reduced the inflow of new coins into the circulation even more. Instead of having an unlimited amount of it, the coin is capped at 21 million units.
However, decentralization can go much further than simply a currency. It can revolutionize the world by decentralizing entire businesses. Take the AlphaPlay betting platform as an example. The betting industry is at its height, whether centralized or decentralized.
However, in its decentralized form, it is so much more transparent and safe. AlphaPlay proves it by relying on smart contracts, instead of the human factor. As such, it can guarantee truth and trustworthiness, with 100% fair prices that are coming from the world’s leading crypto exchange, Binance.
In essence, the platform allows people to bet on the real cryptocurrency rate. Basically, Bitcoin, as well as other cryptos are volatile, and their prices are going up and down all the time. So, many enjoying taking bets on where the price would go next.
Users are earning a lot through various rewards and benefits. Token owners are receiving 6% of all platform turnover as bonuses, while any user is winning 90% of this turnover as prizes. Not only that, but users are also developing their own client base of active players. This allows them to earn 4% of the platform’s turnover. This could become a steady income and allow users to start their own gaming business anywhere in the world. ALPHA ERC-20 tokens can be bought on the token sale, which started on April 26th, and will last for a few months longer, until August 8th.
This is only one example of how a decentralized approach to anything can make things fairer, and completely eliminate the need for trust. And that is really what the people need right now, as is shown by the fact that many are turning to cryptocurrencies.
Bitcoin and altcoin trading volumes on exchanges have skyrocketed since the coronavirus outbreak, showing that people around the world are losing faith in governments and centralized institutions. Fortunately, this is not like the situation from 12 years ago, and this time, there is an alternative.
Share your thoughts with us in the comments section below.