As the world ponders on the identity of the infamous Twitter hack, Gemini Exchange co-founder has made a witty remark on the U.S. Dollar hacking. He blames the Federal Reserve for hacking the currency repeatedly.
The last few days have seen all print and electronic media focus attention on the massive Twitter hack. A hacker or group of hackers infiltrated Twitter and compromised accounts belonging to famous corporations and individuals. Despite all the media coverage, the people who hacked at least 130 Twitter accounts remain a mystery.
Unexpected Pain to Economies
Cameron Winklevoss, one of the founders of Gemini Cryptocurrency exchange, believes the spotlight should be elsewhere. Referring to the ire directed to the bitcoin scam and the hacking event, he took a swing against the U.S. Federal Reserve. He tweeted:
“We may not know yet who hacked Twitter, but we know who continually hacks the U.S. dollar — The Fed.”
Winklevoss was referring to what has occurred since the economic effects of lockdowns necessitated by the Covid-19 fact. The coronavirus outbreak has created unexpected pain to economies the world over, including the United States. Businesses were closed, and people entered lockdowns leading to millions of people registering for unemployment. The Federal Reserve responded in the best way it knows.
Disastrous Consequences on the Dollar
President Donald Trump announced that the government designed a coping mechanism to assist American individuals and businesses in coping with the shutdown. In March, the President signed a $2.2 trillion Covid-19 emergency stimulus package. This opened a Pandora’s Box that has seen the money printing machines run at full throttle with similar developments. According to leading economists, the alleviation brought by the money printing of excess amounts of USD can only lead to disastrous consequences on the dollar in the near future.
Simple economics shows that increasing the amount of money creates inflation, and reducing people’s purchasing power. This is because a surge in demand exceeds supply resulting in the increases in the price of everything. All fallen empires and modern states today have inflated the money supply, and the ‘print more’ attitude has been infectious. Maxime Bernier tweeted in March:
“When central banks buy a security, they pay it with money they create out of thin air. There is more money in circulation, BUT NOT MORE GOODS AND SERVICES. That’s how they debase the currency, lower its purchasing power, and make you poorer.”
Destroying the U.S. Dollar
Economists understand that politicians are addicted to selling debt to unborn generations. The last 30 years of the American “progression” is made of a revolving debt machine. In 2010, some prominent economists wrote to the former Fed Chair Ben Bernanke and told him how dangerous it was to continue the large-scale asset purchases (Q.E.).
“We believe the Federal Reserve’s large-scale asset purchase plan “quantitative easing” should be reconsidered and discontinued […] we do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.”
As the FED continues with its so-called “quantitative easing” policy, the dollar sunk to its three-month low recently. Some reports even claim that the FED’s actions are indeed “destroying the U.S. dollar,” thus supporting Winklevoss’s opinion.