Today a came across an article talking about a statement from the IMF and I thought it would be interesting to share with the people here.
Here are some parts of it (some are translated by me and some are direct quotes):
"With the world sinking into debt, which already amounts to $253 trillion or 322% of world GDP (with some countries like Brazil reaching 100% of GDP in almost unpayable debt), the International Monetary Fund is calling for more government spending.
Last Friday, Managing Director Kristalina Georgieva did not give any specific economic forecasts, but urged the governments worldwide to "Spend as much as you can".
“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: ‘please spend’. Spend as much as you can and then spend a little bit more,” Georgieva said.
“I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption,” she said.
“IMF staff calculated that a coordinated G20 fiscal stimulus in green infrastructure, if it is done in a coordinated manner, would deliver two-thirds more in growth ... than if each country acts on its own,” she said."
In theory, if this were to be implemented, the worth of FIAT currencies would plummet, with all the inflation caused by the money printing that will be necessary to sustain all the spending.
I wonder if governments worldwide do implement this, would we see another explosion in the value of Crypto or it will fall together with FIAT?
As I'm not an economist I can't say much but, what you guys think about all this? Let's talk about it in the comments xD
Ps.: I find it incredible that the governments keep making the same mistakes again and again, hoping that the next time it will work, but time and time again we see that none of it helps, in the opposite, they always make things worst. Unless the governments take their hands off the market it will never truly recuperate.
