Category: economics

Salvadoran President Nayib Bukele Taunts Economist Steve Hanke After Bitcoin’s Price Skyrockets

Salvadoran President Nayib Bukele Taunts Economist Steve Hanke After Bitcoin’s Price Skyrockets

On October 15, the day bitcoin’s price surpassed the $60K per unit handle, Salvadoran president Nayib Bukele taunted the professor of applied economics at Johns Hopkins University, Steve Hanke, over his recent statements. At the time, the well known economist warned that El Salvador faces “financial ruin” with “Bukele at the helm,” after El Salvador’s president bought the bitcoin dip when the price was down.
3 Weeks Ago Steve Hanke Said ‘With Bukele at the Helm’ His Country Faces ‘Financial Ruin,’ Bukele Responds After Bitcoin Spikes and Says: ‘You Were Saying?’
When El Salvador adopted bitcoin (BTC) during the first week of September, the first day the law was enacted, BTC’s fiat value dropped a great deal. At that time, Salvadoran president Nayib Bukele told his Twitter followers that El Salvador was “buying the dip” as the country added 150 BTC to its stash. Meanwhile, the professor of applied economics at Johns Hopkins University, Steve Hanke, has criticized the Salvadoran president and tagged him in a Twitter post on September 23.
“Nayib Bukele is playing fast and [loose] with El Salvador’s tax dollars again,” Hanke said. “After bitcoin prices tumbled to a 6wk low, Bukele bought 150 more coins [and] proudly said that ‘We just bought the dip.’ With Bukele at the helm, ELSL faces financial ruin.”
Meanwhile, the leading crypto asset bitcoin (BTC) did fall into a slump in September, but as the month transitioned into October, BTC’s price skyrocketed. On October 15, Bukele decided to retweet Hanke’s September 23 statement and added a remark of his own. “You were saying?” Bukele tauntingly asked the well known economist. BTC has since been hovering above the $60K price range during the last 24 hours.
The following day, Hanke responded and said: “Yes, I was saying ‘financial ruin.’ Have you checked the price plunge of El Salvador’s dollar-denominated bonds since September 7th?” Hanke asked Bukele. “As the traders say, El Salvador’s bonds due in 2023, 2025, & 2029 are ‘distressed,’” Hanke added.

Hanke Says ‘Private, Digital Money Is Nothing New,’ and Claims ‘the Case for Crypto as a Driver of Innovation Is Thin’
Furthermore, the founder of Shapeshift, Erik Voorhees, also responded to Hanke’s tweet on Saturday with an animated GIF that shows goalposts moving. Another individual stated: “Hanke sounds like [the] people who were afraid of electricity in the 19th century.” Hanke has clearly stated that he’s not fond of bitcoin (BTC) many times, and he’s warned about El Salvador’s bitcoin adoption in June.
At that time, Hanke said he didn’t think it’s a good idea for the Latin American country to use bitcoin as legal tender and he further added that the decision could “completely collapse the economy.” Despite his angst toward bitcoin, the economist has said in the past that central banks fuel wealth loss and the world could use less of them. However, Hanke is a fan of the creation of currency boards, which essentially leverages monetary authority to maintain a fixed exchange rate with foreign currencies.
In more recent times, Hanke has said that “private, digital money is nothing new. Most money has been produced privately and in a digital form for decades,” Hanke claims. In an opinion editorial published via the National Review, Hanke stressed that “the case for crypto as a driver of innovation is thin.”
What do you think about Salvadoran president Nayib Bukele provoking Steve Hanke to respond? Do you agree with Nayib Bukele or do you agree with the economist Steve Hanke? Let us know what you think about this subject in the comments section below.

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Bitcoin (BTC), Bitcoin adoption, bonds, BTC, BTC adoption, Central Banks, Crypto, Cryptocurrency, Currency Boards, economics, Economist Steve Hanke, Economy, El Salvador, Erik Vorhees, Johns Hopkins University, Latin American country, Nayib Bukele, President Bukele, Steve Hanke

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US Senator Lummis Thanks God for Bitcoin as Congress Discusses Raising Debt Ceiling

US Senator Lummis Thanks God for Bitcoin as Congress Discusses Raising Debt Ceiling

U.S. Senator Cynthia Lummis said, “Thank God for bitcoin,” during her speech to the Senate about raising the U.S. debt limit. “Bitcoin is not issued by a government, so it is not beholding to the debts that are run up by governments,” she explained.
US Senator to Congress: ‘Thank God for Bitcoin’
Senator Cynthia Lummis praised bitcoin during her speech on the Senate floor last week about raising the U.S. debt limit. The senator has been a bitcoin hodler since 2013 and has repeatedly stated that bitcoin is a great store of value.
Lummis pointed out that while lawmakers were intensely discussing raising the debt limit, “almost no one is talking about the debt” itself. “We are getting closer to $30 trillion. Certainly, if the spending that is being entertained by the majority party and the Biden administration passes, it will be over $30 trillion,” she warned.
The senator from Wyoming explained:
Countries have historically tended to decline once the debt surpassed their gross domestic product.
Citing the Congressional budget office stating in February that the national debt would surpass the country’s GDP this year, the senator exclaimed: “The debt ceiling increase that is being discussed here is so more spending can occur without addressing our debt-to-GDP ratio. We cannot go on like this. It is irresponsible at the deepest levels.”
The senator warned, “we are swiftly approaching a time when we will be unable to” pay our debt holders.
She proceeded to share:
One of the reasons that I became so interested in digital currencies, in non-fiat currencies, is because they are not issued by a government. Bitcoin is not issued by a government so it’s not beholding to the debts that are run up by governments.
Lummis asserted, “If we are going to let the dollar decline, having the lessons of history in front of us, and failing to act, we are truly irresponsible.”

She elaborated: “In the event that that contingency occurs, I want to make sure that non-fiat currencies — currencies not issued by governments, currencies not beholden to political elections — can grow, can allow people to save, can be there in the event that we fail at what we know we have to do.”
Noting that “There’s no proof yet in the 21st century that we are going to make this right. Time and again, in the U.S. House and the Senate, time and again, presidents of both parties have run up the debt irresponsibly, with no plan to address it,” the senator described, adding:
So, thank God for bitcoin, and other non-fiat currencies, that transcends the irresponsibility of governments, including our own. That is an indictment of our responsibility … to address this looming, predictable, massive issue.
What do you think about Senator Lummis’ comments? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Cornell University’s professor of economics and former head of the IMF’s China division, Eswar Prasad, has warned that “Cryptocurrencies may contribute to monetary and financial instability.” He added that the risk is amplified if the industry is unregulated and lacks investor protection.
Economist Sees Crypto Posing Risks to Financial Stability
Eswar Prasad, the Nandlal P. Tolani Senior Professor of Trade Policy and professor of economics at the Charles H. Dyson School of Applied Economics and Management at Cornell University, shared his view on cryptocurrency in an interview with CNBC, published Wednesday.
Prasad is also a senior fellow at the Brookings Institution, where he holds the New Century Chair in International Economics, and a research associate at the National Bureau of Economic Research. He was previously chief of the Financial Studies Division in the research department of the International Monetary Fund (IMF) and head of the IMF’s China division.
He said:
Cryptocurrencies may contribute to monetary and financial instability, especially if they were to spawn a large and unregulated financial system that lacks investor protection.
His statement echoes a report recently published by the IMF cautioning that the rising popularity of cryptocurrency could pose a threat to financial stability. Moreover, the deputy governor of the Bank of England, Jon Cunliffe, said this week that regulation is urgently needed since the crypto industry is growing rapidly, and there are some “very good reasons” to think that it could pose risks to the country’s financial stability in the future, even though the risks are currently limited.
Professor Prasad was also asked how cryptocurrencies could widen economic inequality. “Cryptocurrencies and their underlying technology hold out the promise of democratizing finance by making digital payments and other financial products and services easily accessible to the masses,” he replied. “But because of existing inequalities in digital access and financial literacy, they could end up worsening inequality.”
In addition, he emphasized that “any financial risks arising from investing in cryptocurrencies and related products might end up falling especially heavily on naïve retail investors.”

The Cornell professor of economics also discussed central bank digital currencies (CBDCs), stating:
I think central bank digital currencies are the way of the future. But every central bank will want to make sure that its money is not used for illicit purposes, so transactions will be auditable and traceable.
However, Prasad noted that “if every payment you make, including for a cup of coffee or for a sandwich, can be seen by a government agency, that’s an uncomfortable proposition.” The economist concluded: “You could, in a more dystopian world, have the government deciding what sort of goods and services its money can be used for.”
Do you agree with the economics professor? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Putin: Still Early but Crypto Can Be Used for Oil Trade Settlements, Store of Value

Putin: Still Early but Crypto Can Be Used for Oil Trade Settlements, Store of Value

Accusing the U.S. of undermining the dollar through money printing and sanctions policy, President Vladimir Putin has admitted that cryptocurrency can be utilized for settlements in the future, although it’s too early to do that in oil trade. While noting that it lacks backing, the Russian leader assumed crypto could be used to store value one day, too.
U.S. Cutting the Branch It’s Sitting on, Putin Says
U.S. dollar-denominated settlements are declining and countries are scaling down their dollar reserves, Russian President Vladimir Putin said in an interview with CNBC this week. Speaking after his participation in the 20th annual Russian Energy Forum in Moscow on Wednesday, Putin criticized Washington’s monetary and international policies stating that “the United States is cutting the branch it is sitting on.”
The dollar’s status as an international reserve currency is a major competitive advantage, the Russian head of state noted but warned that U.S. authorities are undermining it through increasing sovereign debt and boosting inflation at home, while “making a big mistake” by using the dollar as a sanctions tool abroad. All this is leading to Russia and other countries moving away from the U.S. currency. Putin explained:
Our clients simply cannot pay us in dollars for the products we deliver to them. What happens next? We have no choice other than to switch to other currencies in our settlements.

Cryptocurrency Is Legitimate, Has Right to Exist
Asked by CNBC’s Hadley Gamble whether oil contracts can be denominated in a currency other than the U.S. dollar, including crypto, Vladimir Putin commented that “this seems premature.” At the same time, the president of the Russian Federation acknowledged that despite currently being unstable, cryptocurrency can be used in oil trade settlements at some point in the future.
“It is fine for transferring funds from one place to another, but I think it would be premature to use it in trading, especially when dealing with energy resources,” the Russian strongman said, remarking that cryptocurrency has lacked any backing. Nevertheless, he also stressed:
It is legitimate and can be used in settlements, no doubt about that, but it is too early to use it for trading in oil or other raw materials and energy sources.
Things can change, however, and Putin is convinced that “everything has the right to exist. We will see how this will go from here. Maybe crypto will one day be used to store value. But we see how the market fluctuates, so it seems too early for that now… Of course, there is value there,” the president pondered.
Vladimir Putin also mentioned the energy-intensive process of cryptocurrency extraction. “In order to mine crypto, you need a lot of energy, and for that people have to use traditional sources of energy, primarily hydrocarbons,” the Russian president pointed out in the interview, which was published by the Kremlin.

Putin’s latest comments come after a statement by his press secretary Dmitry Peskov in early September that Russia is still not ready to recognize bitcoin. He expressed the current position of the executive power in Moscow following El Salvador’s move to adopt the leading coin by market cap, BTC, as legal tender alongside the U.S. dollar.
Although Russian officials have stated on many occasions that cryptocurrency will not be accepted as a means of payment — as it is viewed as a prohibited money surrogate — the country has been advancing towards regulating its crypto space. This includes the adoption of relevant legislation such as the law “On Digital Financial Assets.” Deputy Minister of Finance Alexey Moiseev recently said that Russia is not planning to follow in the footsteps of China and ban its citizens from buying cryptocurrency.
Do you think Russia will start using cryptocurrency in the future to settle payments in oil trade? Let us know in the comments section below.

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Bitcoin, Crypto, crypto mining, Cryptocurrencies, Cryptocurrency, Dollar, Energy, kremlin, legal tender, mining, OIL, oil trade, Payments, President, Putin, raw materials, reserve currency, Resources, Russia, russian, Russian Federation, Sanctions, Settlements, store of value, U.S. dollar, Vladimir Putin

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Nigerian Presidency: Vice President Yemi Osinbajo Against ‘Willy-Nilly Devaluation of the Naira’

Nigerian Presidency: Vice President Yemi Osinbajo Against ‘Willy-Nilly Devaluation of the Naira’

The Nigerian presidency has denied reports that the country’s Vice President (VP), Yemi Osinbajo, was calling for the devaluation of the local currency when he recently questioned the naira’s official exchange rate.
The Huge Arbitrage
In fact, according to a report that quotes Laolu Akande, the VP’s assistant, Osinbajo is against “a willy-nilly devaluation of the naira.” Akande suggests that the media may have taken Osinbajo’s comments out of context. He explained:
For context, the Vice President’s point was that currently, the Naira exchange rate benefits only those who can obtain the dollar at N410, some of whom simply turn round and sell to the parallel market at N570.
As regularly reported by Bitcoin.com News, Nigeria’s official exchange rate has remained unchanged since the Central Bank of Nigeria (CBN) last devalued the naira in May 2021. On the other hand, the exchange rate on the black market has grown steadily, hence the existing arbitrage.

Market-Reflective Exchange Rate Needed
According to Akande, it is this growing gap between the two rates that prompted VP Osinbajo to call for an adjustment.
“It is stopping this huge arbitrage of over N160 per dollar that the Vice President was talking about. Such a massive difference discourages doing proper business, when selling the dollar can bring in 40 per cent profit,” he said.
According to the report, Akande thinks “only a more market reflective exchange rate would ameliorate this.” He suggests that when such a rate is finally adopted, an increase in the supply of dollars is expected to follow, and “the rates will drop and the value of the naira will improve.”
What are your thoughts about this story? Tell us what you think in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Zimbabwean Dollar Could Collapse, Business Lobby Warns

Zimbabwean Dollar Could Collapse, Business Lobby Warns

A Zimbabwean business lobby group, the Confederation of Zimbabwe Industries (CZI), has warned that the country’s currency could collapse if authorities fail to “implement policy measures that are needed to support it.”
Central Bank Approach Unsettling the Market
In a letter seen by Bitcoin.com News, the lobby group’s president Kurai Matsheza explained that the heavy-handed approach towards the foreign exchange challenge would be unsettling to markets. To ensure that this challenge is fully tackled, the CZI boss insists that measures, which were agreed upon by parties that attended a consultative meeting, must be given time to take effect.
Following the Zimdollar’s collapse in 2008, Zimbabwe switched to a multi-currency system in which the U.S. dollar dominated. However, in 2019 the Zimbabwean dollar or ZWL, which was then at par with the USD, was reintroduced.
Yet nearly two years later, the ZWL/USD exchange rate is now 88:1 on the official market and over 170:1 on the parallel market. Therefore, in order to halt the ZWL’s continuing depreciation on the parallel market, Zimbabwean authorities launched a blitz that has seen law enforcement agencies arrest alleged foreign currency dealers. At the same time, the central bank has been blacklisting individuals that are accused of worsening the Zimdollar’s woes.

However, it is this operation against black market foreign currency dealers that prompted the CZI boss to pen the letter that expresses his organization’s concern with this approach. He said:
When policies fail we should not arrest people, we should correct the policies for efficacy.
He added that the arrests only cause unnecessary panic in the market and erode consumer confidence in government policies.
The Dutch Auction System
Meanwhile, Matsheza insists that only “a true Dutch auction would perform the function of price discovery and pave the way for a more liberal exchange rate regime.” The central bank introduced this auction system as a way of managing the allocation of foreign exchange.
Nevertheless, some companies and individuals have complained that it has taken them several months to get their allocation. These long delays forced companies to seek the resource on the parallel market where the USD is readily found. Although the CZI is not yet calling for an end of this auction system, Matsheza still calls on authorities to ensure the auction system is managed “in the true spirit of the Dutch Auction System.”
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St. Louis Fed’s James Bullard Would ‘Support Starting the Taper in November’ to React to Inflation

St. Louis Fed’s James Bullard Would ‘Support Starting the Taper in November’ to React to Inflation

St. Louis Federal Reserve president James Bullard told the press on Tuesday that he thinks the U.S. central bank needs to wind down the buying of $80 billion worth of monthly bond purchases. Bullard says he would support tapering starting as early as November, in order to “react to possible upside risks to inflation next year.”
St. Louis Fed President Has Been ‘Advocating Trying to Get Finished With the Taper Process’
On Tuesday, Bitcoin.com News reported on the rising concerns over inflation as the Federal Reserve’s latest Survey of Consumer Expectations (SCE) report explained U.S. households believe inflation will be higher a year from now. It’s been more than 20 months since the U.S. central bank started its massive quantitative easing (QE) programs to combat the disastrous economic consequences of government-ordered lockdowns and supply chain shutdowns.

*BULLARD: CONCERNED THAT INFLATION RISKS ARE TO THE UPSIDE
Oh rly?
— zerohedge (@zerohedge) October 4, 2021

The government and Federal Reserve bailed out major businesses and sent stimulus payments directly to American taxpayers as unemployment skyrocketed and people could not pay their bills. The U.S. government also made it so landlords across the nation could not evict tenants because of an enforced eviction moratorium. In addition to all these swirling problems, inflation has reared its ugly head into the wallets of every American citizen.
Currently, the U.S. central bank participates in purchasing $80 billion of bonds and Treasury bills, and $40 billion of mortgage-backed securities (MBS) per month. Meanwhile, on the same day as our report on inflation, St. Louis Federal Reserve president James Bullard discussed inflation and tapering back QE in a recent CNBC interview. “I’d support starting the taper in November,” Bullard remarked in his interview on the show called “Closing Bell.” Bullard further stressed:
I’ve been advocating trying to get finished with the taper process by the end of the first quarter next year because I want to be in a position to react to possible upside risks to inflation next year as we try to move out of this pandemic.

Bullard: ‘I Just Want to Be in a Position in Case We Have to Move Sooner’
Meanwhile, Bullard’s tapering statements follow the inquisition into the stocks owned by Boston Fed President Eric Rosengren, Dallas Fed President Robert Kaplan, and even the chairman Jerome Powell. Bullard can likely deflect from that ethics inquisition spurred by U.S. senator Elizabeth Warren as Reuter’s reporter Howard Schneider says the St. Louis Fed branch president’s holdings are small. “James Bullard’s holdings are modest enough that he handwrites his ethics form,” Schneider writes.

Bank of St. Louis Federal Reserve Pres. Jim Bullard just said #inflation might not fall back to 2% and that we’re going to have more inflation than we’re used to for some time. This admission is a gross understatement. Soon the 1970s stagflation will look like the good old days!
— Peter Schiff (@PeterSchiff) October 4, 2021

As far as tapering is concerned, Bullard faces more hawkish Fed members who may not agree with tapering so soon. The critic Sven Henrich from northmantrader.com isn’t buying all the Fed talk about inflation being “transitory.” “Before you know it, transitory will be replaced with the new normal,” Henrich tweeted on Wednesday.
“The combined assets of the Fed and Blackrock alone equate 82% the size of the entire U.S. economy,” Henrich said a couple of hours later in another tweet. “Add Vanguard with another $7 trillion and you’re looking at 115% of GDP. Fidelity adds another $4 trillion+ for a 134% of GDP total,” Henrich added.
Bullard explained on CNBC’s “Closing Bell” that a commitment doesn’t have to be made just yet but he wants to be prepared. “There’s no reason for us to commit one way or another at this point,” Bullard concluded. “I just want to be in a position in case we have to move sooner than we’re able to do so next year in the spring or summer if we have to do so.”
What do you think about St. Louis Federal Reserve president James Bullard’s statements on tapering back QE? Let us know what you think about this subject in the comments section below.

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Central Bank, CNBC Interview, CNBC’s “Closing Bell”, Consumer Debt, Consumers, economics, Fed Report, Federal Reserve, government spending, Howard Schneider, inflation, inflation crisis, James Bullard, northmantrader.com, Purchasing Power, SCE report, St. Louis Federal Reserve president, Survey of Consumer Expectations, Sven Henrich, the fed, transitory

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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US Inflation Expectations Highest Since 2013, Gas Prices Skyrocket, Supply Chains Buckle

US Inflation Expectations Highest Since 2013, Gas Prices Skyrocket, Supply Chains Buckle

Americans are still concerned about dealing with inflation, as the cost of goods and services has continued to rise significantly in a short period of time. The Federal Reserve has published the latest Survey of Consumer Expectations report and U.S. households believe inflation will be up 5.3% one year from now. In addition to the dreary economic outlook, gas prices across the U.S. have skyrocketed up more than $1 from a year ago.
New York Fed’s Survey of Consumer Expectations Continues to Look Gloomy
After 2020’s massive monetary expansion, in order to help the economy combat the coronavirus outbreak and help facilitate the lockdown orders that subsequently followed, inflation has crept into the wallets of every American.
Month after month, the Federal Reserve has published the central bank’s Survey of Consumer Expectations (SCE) reports, and every month, inflation expectations jump higher. Once again, the latest Fed SCE report published on Tuesday indicates that Americans are still expecting higher inflation and low purchasing power a year from now.
New York Fed chart on three-year inflation expectations via the publication Zerohedge and the article dubbed “Fed Losing Control As Consumers’ Inflation Expectations Hit New All-Time High” written by Tyler Durden.
The inflation expectations have surged to all-time highs and are the highest levels since 2013, with an expectation of 5.3% one year from now. Furthermore, the New York Fed (the branch that publishes the SCE report), once again mentions the coronavirus.
“Median inflation uncertainty – or the uncertainty expressed regarding future inflation outcomes – was unchanged at the short-term horizon and decreased at the medium-term horizon,” the Fed survey highlights. “Both measures are still well above the levels observed before the outbreak of Covid-19.” The recently published Fed SCE report leverages a rotating panel of 1,300 households.
IMF Warns Central Banks Like the Fed to Tighten Monetary Easing Policy
In addition to the SCE report, the International Monetary Fund (IMF) has noted, in the world organizations’ quarterly update on global economic conditions, that central banks may need to tighten monetary easing policy. The IMF emphasized countries like the U.S. and the U.K. where “inflation risks are skewed to the upside.”

IMF warns of need to be ‘very, very vigilant’ over rising inflation risk
We have gone from very transitory to we have to be very, very vigilant.
Got it…
— Gold Telegraph ⚡ (@GoldTelegraph_) October 12, 2021

“While monetary policy can generally look through transitory increases in inflation, central banks should be prepared to act quickly if the risks of rising inflation expectations become more material in this uncharted recovery,” the IMF’s economic counselor and director of research, Gita Gopinath stressed in the report. “Central banks should chart contingent actions, announce clear triggers, and act in line with that communication.”

Supply Chains Buckle, Gas Prices per Gallon $1 Higher Than Last Year
To make matters worse, the U.S. supply chain (and internationally) has been dealing with significant issues and gas prices across the country have risen significantly since last year. The media in the U.S. continues to tell tales of a buckling supply chain and some are blaming supply chain issues on the conflict between the U.S. and China.

Just 8 states have average #gasprices still under $3/gal:OK $2.88MS $2.89TX $2.89AR $2.91LA $2.97KS $2.98AL $2.98MO $2.99
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) October 11, 2021

Supply chain shortages and rising gas prices have fueled the inflation crisis in the U.S., so much so that doesn’t seem to be ‘transitory.’ Every week, headlines show that “the return of empty shelves” has returned in the United States as well as the United Kingdom. Grocery stores in nearly every state across the U.S. are starting to see empty shelves again.
U.S. gas prices have also risen by $1 since last year and the average price of gas in the U.S. today is $3.25 per gallon. Only eight states in the U.S. have gas for under $3 a gallon.
What do you think about the current inflation woes Americans are dealing with in 2021? Let us know what you think about this subject in the comments section below.

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buckling supply chain, Central Bank, China, Consumer Debt, Consumers, credit, economics, empty shelves, Fed Report, Federal Reserve, food inflation, gas inflation, gas prices, Gita Gopinath, government spending, IMF, inflation, inflation crisis, New York Fed, Purchasing Power, SCE, SCE report, supply chains, Survey, Survey of Consumer Expectations, the fed

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Nigerian Vice President Says Current Naira Exchange Rate ‘Artificially Low’

Nigerian Vice President Says Current Naira Exchange Rate ‘Artificially Low’

Nigerian Vice President Yemi Osinbajo recently warned that the country’s official naira exchange rate of N411 for every dollar is artificially low. This exchange rate, according to Osinbajo, discourages foreign exchange entrance into the country.
Naira Exchange Rate Must Reflect Realities of Market
Consequently, Vice President Osinbajo says he wants the Central Bank of Nigeria (CBN) to allow the naira to “reflect the realities of the market.” As a report by The Cable details, Osinbajo also wants the CBN to rethink its foreign exchange management strategy. He explained:
We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.
Still, Osinbajo suggested that any such reassessment should only be done when the CBN governor has time to address this issue.

Naira Depreciation
Since the first half of 2020, the naira has continuously depreciated against major currencies like the U.S. dollar and the British pound. At the time of writing, the official naira to USD exchange rate stands at just over 411 for every dollar. This exchange rate is nearly 40% lower than the parallel market rate of 570 naira for every dollar.
Despite this discrepancy between the official rate and the black market exchange rate for the naira, the CBN has so far refused to devalue the currency. Instead, the central bank has gone after individuals and companies that are accused of fueling the naira’s slide.
In the meantime, Osinbajo warned the CBN against meddling with the fiscal part of the economy. However, should the need for such intervention arise, the CBN should only act when it has “the full cooperation and consent of the ministry of industry,” Osinbajo stipulated.
Do you agree with the Vice President’s naira sentiments? Tell us what you think in the comments section below.

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Edward Snowden Calls CBDCs ‘Cryptofascist Currency’ — ‘Closer to Being a Perversion of Cryptocurrency’

Edward Snowden Calls CBDCs ‘Cryptofascist Currency’ — ‘Closer to Being a Perversion of Cryptocurrency’

On October 9, whistleblower and privacy advocate Edward Snowden published an opinion editorial concerning central bank digital currencies (CBDCs) and claimed CBDCs are “the newest danger cresting the public horizon.” Snowden stressed that rather than being an innovation, CBDC’s are “closer to being a perversion of cryptocurrency” and a “cryptofascist currency.”
Snowden Stresses CBDCs ‘Are Expressly Designed to Deny Its Users the Basic Ownership of Their Money’
While politicians and the modern banking cartel have been all about central bank digital currencies, a great number of critics believe they are no different than centralized databases. On Saturday, the former Central Intelligence Agency (CIA) and National Security Agency (NSA) subcontractor, Edward Snowden, published an article describing what he thinks CBDCs will bring to society. Snowden is a fan of decentralized crypto assets like bitcoin, ethereum, and zcash. However, when it comes to CBDCs the whistleblower is concerned about adopting the technology.
“I will tell you what a CBDC is NOT — it is NOT, as Wikipedia might tell you, a digital dollar,” Snowden emphasizes in his article. “After all, most dollars are already digital, existing not as something folded in your wallet, but as an entry in a bank’s database, faithfully requested and rendered beneath the glass of your phone. Neither is a Central Bank Digital Currency a State-level embrace of cryptocurrency — at least not of cryptocurrency as pretty much everyone in the world who uses it currently understands it,” the whistleblower said. Snowden added:
Instead, a CBDC is something closer to being a perversion of cryptocurrency, or at least of the founding principles and protocols of cryptocurrency—a cryptofascist currency, an evil twin entered into the ledgers on Opposite Day, expressly designed to deny its users the basic ownership of their money and to install the State at the mediating center of every transaction.
Snowden concludes by explaining that people earn a living via their labor and it could be enough to retire or “if not, can he ever hope to rely on the State’s benevolent, or even adequate, provision — for his welfare, his care, his healing?” Snowden says he’d like to ask members of the Fed, the Treasury, and the U.S. government whether or not money should be centralized by the state. ”Of all the things that might be centralized and nationalized in this poor man’s life, should it really be his money?” Snowden asks in his article’s conclusion.

Eddie Hobbs Claims ‘Your Savings Are Collateral Damage in the New Rules of the Game’
The future of this corrupt monetary system can be seen from a mile away, and in another recently published opinion editorial, financial advisor and writer Eddie Hobbs explains: “Your savings are collateral damage in the new rules of the game.” Hobbs stresses that the surge in excess global debt cannot be helped, except by suppressing benchmark interest rates for a decade or more.
“Central Banks know this, that letting loose inflation is the only way out, while governments jack up borrowing to world war levels hoping to reignite growth faster than the debt piles up,” the financial writer detailed. “The ECB intends to ride shotgun, letting time and inflation erode the real value of outstanding debt while they play their part by crushing rates into negative territory.” Hobbs adds:
Savings are collateral damage in the new rules of the game. Irish Banks are charging up to -0.65% to hold cash. So far, it has sharply curtailed Credit Union’s capacity to take in cash and is hurting corporate deposits, trusts, and charities, but it is coming your way next year once it seeps down from seven-figure consumer deposits. You can ignore bank propaganda to the contrary.
What do you think about Edward Snowden’s opinion of CBDCs and Eddie Hobbs explaining that savings are collateral damage in the new rules of the game? Let us know what you think about this subject in the comments section below.

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Bitcoin Price, CBDC, CBDCs, central bank digital currency, Eddie Hobbs, Edward Snowden, Edward Snowden bitcoin, edward snowden crypto, edward snowden cryptocurrency, NSA contractor, Savings are collateral damage, snowden, whistleblower

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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