While Europe and the United States have their trillion dollar printers connected. Many are trying to protect themselves with bitcoin because of their finite limit.
A meeting to be held on 10 December will deal with a matter of global interest. The European Central Bank (ECB) is considering extending its purchases of securities for 12 months. This would make the program last until mid-2022, adding another $750 billion to a total of $2 trillion to be printed next year and a half.
Executive Board member Isabel Schnabel said buying the debt by mid-2022 was an option that would be considered, while the president of Latvia’s central bank, Martins Kazaks, said he would support such a decision.
Apparently, some officials who are happy to extend it for six months are willing to support a 12-month extension, exceeding market expectations.
ECB President Christine Lagarde promised that policies would be „recalibrated“ in response to the pandemic.
Governing council members, however, seem to think that next year may be too early to stop the programme, so they are willing to extend it to avoid economic uncertainty.
This is happening while inflation in the euro area is down 0.3% as the speed of money falls with Europe facing a potential deflationary trap.
The currency has appreciated significantly against the dollar, although the ECB has a larger balance sheet than the Federal Reserve Banks.
Negative interest rates are now reaching banks, something that may be generating bubbles in the real estate market and especially in US stocks.
This data does not go into inflation measures, creating a potentially false picture of how well the fiduciary currency is maintaining its purchasing power.
Many, therefore, are trying to protect themselves with bitcoin because of its finite limit, which can lead them to benefit from trillion dollar printers in Europe and the United States.
Article published in TrustNodes and adapted in partnership with Livecoins.