The worst recession since Earth State of war Two and its fallout was not the fault of the fiat coin system, according to the chairman of the United States Federal Reserve.

In a televised address on May 13, Jerome Powell said that for all the damage done to the U.South. and global economic system this year, the culprit was coronavirus — not governments or central banks.

Powell: "No bubble, no unsustainable boom"

"The current downturn is unique in that it is attributable to the virus and the steps taken to limit its fallout," Powell summarized.

This fourth dimension, loftier aggrandizement was non a trouble; in that location was no economy-threatening chimera to pop and no unsustainable boom to bust. The virus is the cause, not the usual suspects.

Powell was speaking days after U.Southward. national debt passed $25 trillion for the outset fourth dimension in history and pressure grew for the Fed to implement negative involvement rates.

His version of events could non differ more than from those of Bitcoin (BTC) and golden supporters, who debate that information technology is fiscal irresponsibility that caused the economic system to be so susceptible to the virus in the first place.

The controversial measures to contain it appear to paw money from those most afflicted to the banks and big businesses already most protected. Known as the "Cantillon effect," these accept only heightened their suspicions.

US dollar purchasing power since the Federal Reserve's creation

US dollar purchasing power since the Federal Reserve'south creation. Source: howmuch.net

"Those who forget the by…"

For Powell, all the same, information technology would appear that equally with the Global Fiscal Crunch of 2008, the "remedy" to the current situation is the continuation of the monetary expansion policy that has characterized the U.Southward. since 1971.

As Cointelegraph frequently notes, it is Bitcoin that provides the ultimate "hard money" solution to the debasement undergoing fiat.

A limited supply that no one can manipulate, creating true digital scarcity for the outset fourth dimension in history, is all the more conspicuous afterward this week'south block subsidy halving, which cut Bitcoin's aggrandizement to 1.8%.