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Bitcoin Could Rise By 165% To $2,000 in 2017 Driven by Trump's 'Spending Binge' and Dollar Rally (cnbc.com)
The price of Bitcoin could hit more than $2,000 in 2017 driven by expectations that U.S. President-elect Donald Trump may introduce economic stimulus policies, which could send inflation soaring and propel the dollar to record highs, a report from Saxo Bank claims. An anonymous reader shares a CNBC report: Bitcoin is currently trading around $754.51, according to CoinDesk data. A handle of over $2,000 would represent 165 percent appreciation. During his election campaign Trump has talked about an increase in fiscal spending. Saxo Bank's note said that this could increase the roughly $20 trillion of U.S. national debt and triple the current budget deficit from approximately $600 billion to $1.2-1.8 trillion, or some 6-10 percent of the country's current $18.6 trillion economy. As a result, the economy will grow and inflation will "sky rocket," forcing the U.S. Federal Reserve to hike interest rates at a faster pace and causing the U.S. dollar "to hit the moon." When inflation rises the Federal Reserve may raise interest rates to bring it under control. This causes the dollar to appreciate because it would be seen as an attractive currency for foreign investors.
Here we go again.
your thin skin doesn't make me a troll
The two offered reasons seem to be mutually exclusive... Either we see inflation — as Trump's government prints money to finance the feared "binge" (which is oh so different from the wise Government Spending of the Obama era). Such printing may cause an inflation with dollar falling against other currencies — including BitCoin. In this case, BitCoin may, indeed, rise in value.
Or we see dollar "rally" — rise in value against other currencies, including BitCoin.
So, which is it?
I don't think, a raising of rates ever reversed inflation in the history of Federal Reserve — it can only slow it down. They would not even seek to stop it, considering the value of 1-2% per year "normal" (that's a tax on wealth, BTW).
In Soviet Washington the swamp drains you.
How do we know this is true? It could be FAKE
Or they could be lying, like the Southern Poverty Law Center, that buried white kids getting racially harassed over Trump's victory.
Of course, "reputable" news outlets like the NY Times and the Washington Post ran with that FAKE news.
Report buried Trump-related ‘hate crimes’ against white kids
At least 2,000 educators around the country reported racist slurs and other derogatory language leveled against white students in the first days after Donald Trump was elected president. But the group that surveyed the teachers didn’t publish the results in its report on Trump-related “hate crimes.”
The Southern Poverty Law Center partnered with the American Federation of Teachers, which formally endorsed Hillary Clinton, to circulate the questionnaire among its 1.6 million mostly Democratic members. The survey was sent out to K-12 teachers and administrators who subscribe to its “Teaching Tolerance” newsletter.
The SPLC’s widely cited report — “The Trump Effect: The Impact of the 2016 Presidential Election on Our Nation’s Schools” — reported that 40 percent of the more than 10,000 educators who responded to the survey “have heard derogatory language directed at students of color, Muslims, immigrants and people based on gender or sexual orientation.”
The takeaway was that Trump-supporting white kids have been harassing minorities at the nation’s schools. And SPLC’s schools report, along with a broader report on alleged Trump-inspired hate crimes — “Ten Days After: Harassment and Intimidation in the Aftermath of the Election” — sparked breathless coverage in the New York Times, Washington Post and other major media.
The reports also triggered a statement Friday from the US Commission on Civil Rights, which expressed “deep concern” that “prejudice has reared its ugly head in public elementary and secondary schools.” The panel called for more federal funding to prosecute “hate crimes.”
But the SPLC didn’t present the whole story. The Montgomery, Ala.-based nonprofit self-censored results from a key question it asked educators — whether they agree or disagree with the following statement: “I have heard derogatory language or slurs about white students.”
Asked last week to provide the data, SPLC initially said it was having a hard time getting the information “from the researchers.” Pressed, SPLC spokeswoman Kirsten Bokenkamp finally revealed that “about 20 percent answered affirmatively to that question.”
He already is. He's talking about increasing long term capital gains taxes, which taxes investments like bitcoin.
Don't worry, he will repeal the estate tax so that billionaires can pass on all their money to their children (instead of just most of it) so that the new generation of bosses are the same as the old generation of bosses. Meanwhile, the people who voted for him because they are getting screwed economically will still get screwed. What did you think would happen when you elected a billionaire?
Also, where do you get that he is planning on raising capital gains taxes? His site says:
So his plan is to lower income taxes on the ultra-rich and increase spending. I hope all the Tea Party representatives that shut the government down during the Obama administration will stop his attempt to run up the debt but I doubt that will happen.
Enigma
Really? So I just got a 'raise' at work from deflation, somehow that is demotivating?
Here's the fallacy -- how long do you think that "raise" will last in a persistent deflationary economy? Prices are going down, because monetary value is going up. That means corporate revenues go down. People with large amounts of money invest much less, because an investment would have to have a LARGE rate of return to actually be worthwhile... otherwise, you just hide your money under your mattress.
So, fewer investors, decreasing prices... corporate revenues go down. And somehow you think get to keep you "raise" at your current salary in deflated dollars?? Fat chance. Eventually, they need to start decreasing your salary -- probably even more than to keep "pace" with deflation, because of the decreased revenues. Or they just start laying people off.
But that's only the tip of the iceberg. Why would you buy property in a deflationary economy, when it is likely to be a depreciating asset? Loans become nearly impossible to justify -- banks would still have to charge interest on them to justify them, which means you're throwing money at a depreciating asset, while the principal of your loan and your payment sizes effectively grow due to deflation. And given the depreciating value of assets, banks are likely to require additional insurance fees in case of default (a lot more than they have on risky mortgages today).
People stop trying to get loans to open new businesses. Investors stop financing them, unless it's basically a "sure thing," since they can "make money" just stashing their cash away. People stop taking out loans for basic things like real estate and houses.
"But," you say, "Maybe that's a good thing. Maybe people should learn to save up more before buying a large purchase." Okay, except who do they rent from in the meantime if they don't take out a mortgage on a house? The people owning rental property face the same difficulties in maintaining a rationale for owning it. If it's decreasing in value, along with other goods, rents will eventually be driven down too (along with the decreasing salaries). Why invest in maintaining property? -- it's just throwing money at a continuously depreciating asset.
If you're a landlord in such an economy, the best strategy is probably to dump your property now and get more money out of it while you still can before its value decreases further.
And we can go on and on. People hoarding cash and dumping most other investments leads to economic stagnation, then worse. Eventually this results in a deflationary "spiral" and the economy tanks.
Oh sure, throughout all of this SOME people will still invest and spend money, but it becomes increasingly hard to justify.
People who support deflation generally never think through even the basic next steps in their logic. They just think they'll magically have "higher salaries" coming from somewhere to spend on cheaper goods. That doesn't happen in real economies. The only people steady deflation is good for are people who have giant money bins already. For everybody else, you'd be much better off with the 1-2% mild inflation and actually having a more active economy.