US Federal Reserve continues to hunt the the country’s economy after its series of increased interest rates in 2018.
US Economy In Recession?
Now, Canadian economist David Rosenberg claims that US economy will be under recession this year, which jumps in to our question. Will cryptocurrencies save economy from Rosenberg’s prediction?
“The market is behaving as it did during the worst collapse for the market since 1929 and/or the worst recession since the Great Depression,” Rosenberg wrote at Business Insider.
That’s the chilling explanation of well-known economist David Rosenberg after he made an assessment with Fed’s actions based on the past year.
Downs Of Fed Reserve
As reported, US Federal Reserve made another increased on its interest rate in December 2018. However, prior to this, the agency already raised the rates in September, on the same year.
Worse, Fed Reserve stated that there will be another series of increase interest rates down in 2019.
That sums up to Federal Reserve chairman Jerome Powell’s seventh time to increased rates under his control.
In comparison to that, was Obama’s one time of raised interest rate from its eight-year tenure.
Although Rosenberg’s prediction ability seems to be shaky due to the same prediction he did in 2017 with the US economy– which obviously did not happen. Rosenberg claimed to be accurate on his prediction, this year, which tremble investors around the world.
“We’ve got more than 80 percent chance of recession just based on the fact the Fed is tightening policy,” he said
Will Cryptos Going To Save The Day?
Whether the economist’s prediction were right this time, the fact that Fed Reserve continues to affect and plunged on its way to recession, has made an interesting idea for the industry of digital tokens.
As reported in BTCNN, retired politician and bitcoin advocate Ron Paul, shared his claim of ending Federal Reserve and replacing it with ‘tax-free’ cryptocurrencies.
“THE FED HAS NO IDEA WHAT RATES SHOULD BE. THE FED MANIPULATES PRICES, DISTORTS THE ECONOMY, AND MAKES DECISIONS BY LOOKING AT THE ‘DATA’ OF A DISTORTED ECONOMY,” PAUL TWEETED.
That claim was supported from the same statement of Rosenberg’s prediction of US economy under recession.
“IT IS LIKELY THAT THE NEXT FED-CREATED RECESSION WILL COME SOONER RATHER THAN LATER. THIS COULD BE THE MAJOR CATASTROPHE THAT LEADS TO THE END OF FIAT CURRENCY,” HE ADDED.
The catastrophe held by US Fed Reserve proves that it can be possible for US investors and the economy to switch from banks to cryptos, once the agency ends loose.
After all, who wants a trail with shaky bumps?