The head of the International Monetary Fund (IMF) has called on countries around the world to spend as much as possible and then spend more. She admitted that this is a “very unusual” policy for the IMF, but it is necessary to revitalize economies. Many people interpret her statement as being very optimistic for bitcoin.
IMF encourages mass spending
Kristalina Georgieva, CEO of the IMF, has urged governments around the world to spend as much as possible and then more. She said Friday at Gaidar’s annual economic forum in Russia that policymakers worldwide should spend more money to revitalize their economies. She was quoted by Reuters:
In terms of policy for now, very unusual for the IMF, I would go out from March and say ‘please spend’. Spend as much as you can and then spend a little bit more.
“I continue to advocate for monetary and fiscal policy adjustments that protect the economy from collapse at a time when we are deliberately limiting both production and consumption,” she added. “IMF staff calculated that a coordinated G20 fiscal stimulus on green infrastructure, if done in a coordinated manner, would generate two-thirds more growth … than if each country acted alone.” Georgieva also noted that the IMF provided aid to 83 countries in 2020.
Massive government spending bullish for Bitcoin
Bitcoiners on social media see this news as ultra bullish for BTC. Many people interpret the IMF chief’s plea as “brrrr” as much as you can. Others said, “Money printer is going brrrr” and “buy bitcoin.”
This isn’t the first time the crypto community has discussed how massive government spending would increase the price of bitcoin. Early bitcoin investor Bruce Fenton previously described, “Incentives and increased government spending are driving up prices, bitcoin is gaining.” River Financial tweeted last week:
Many of our largest clients have committed significant amounts to bitcoin mainly due to unsustainable government spending and quantitative easing by the Fed.
What do you think of the IMF chief’s statement? Let us know in the comments below.
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