As the U.S. dollar continues to experience soaring inflation, El Salvador’s president, Nayib Bukele, has weighed in on the matter, pointing out that the increased printing of fiat money is the major culprit.
Replying to a Bloomberg report regarding the issue in his latest tweet, President Bukele noted that the Federal Reserve (Fed) should stop printing more money, as its efforts to battle the rapidly escalating inflation with more cash injection are proving counter-effective.
The Money Printing Disease
As per the report, the Fed Chairman, Jerome Powell, had suggested in an appearance before a Senate committee, that it was time to retire the effects of inflation on the country’s economy as “transitory”.
“The word transitory has different meanings for different people. To many, it carries a sense of short-lived. We tend to use it to mean that it won’t leave a permanent mark in the form of higher inflation. I think it’s probably a good time to retire that word and try to explain more clearly what we mean,” Powell said.
He vowed that the Fed will employ every tool necessary to battle the inflation pressures, which he noted “will linger well into next year.”
Powell suggested the possibility of raising interest rates or even bringing the Fed’s bond-buying program to an end.
However, President Bukele suggested a solution to the “money printing disease” that had been presented by several bitcoin proponents, including Tyler Winklevoss, the co-founder of Gemini.
President Bukele said,
“Can you guys just stop printing more money?
You’re just going to make things worse.
Really. It’s a no brainer.”
The People’s Money: Bitcoin
Bitcoin has long been touted as a hedge against the effects of inflation and that is one reason why several individual and institutional investors are placing massive bets on the crypto asset.
Robert Kiyosaki, the best-selling author of the popular financial literacy book, Rich Dad Poor Dad, had even urged his audience to adopt bitcoin, which he described as the people’s money.
El Salvador made waves earlier this year when it adopted bitcoin as a legal tender. Ever since then, the country has not turned back as it continues to accumulate the digital currency.
