Expect a massive increase in government spending.

If the world survives corona, expect governments world wide to increase fiscal spending.Governments will need to basically give money away to citizens in order to support their economies as a result of corona based lockdowns. We are getting the numbers from China in February, when the country was on lockdown, and economic activity was down around 20%. Expect US and EU GDP to be down -10% or so for March.That's really bad. Like 2008, which was a shit storm.How the economy performs after lockdown is cleared is still hard to forecast, but assuming the world survives, governments will need to step-up to help alleviate the fallout. Expect lots of unconventional measures. Sending every American $1000 in the mail is very likely (and a damn good idea, IMO). Northern Europeans will finally open the purse, allowing all of Europe to finally do what they should have done years ago.What happens to bitcoin and crypto, I dont know.I don't think an increase in government spending will reduce the faith of fiat or make people want to buy crypto out of fear of debasement. But it does increase the probability that an outcome like that eventually occurs, IMO.

Submitted March 17, 2020 at 10:04AM