#347
The Toothpaste Is Out of the Tube
Published:
Aug 01, 2020
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The US printed more money in June than in the first two centuries after its founding. Last month, the US budget deficit was larger than the total debt incurred from 1776 to 1979. Though talks between US congressional leaders and the White House on a next round of COVID-related spending stalled, government intervention is reaching higher levels than many would be comfortable with.
Consequently, Bitcoin crossed back over $10k this week with fortitude, and total value locked in DeFi protocols crossed $3.5b. Many expect more “number go up” as an unstoppable US federal money printing machine faces off against a more open, deflationary, non-sovereign controlled financial system (aka Bitcoin).
Aside from printing gobs of cash, the US government made another bizarre move, announcing that Kodak (the defunct camera maker) would receive a $765m loan to launch Kodak Pharmaceuticals. The new company will supposedly produce generic active pharma ingredients to reduce US dependency on foreign drug makers. The lack of core competencies in drug manufacturing puzzled some, but didn’t stop shares from rallying 500% - forcing the NYSE to halt their trading several times.
Finally, Congress had a showdown with the four biggest names in Big Tech (over Zoom), with Rep. David Cicilline closing the hearing by saying that Apple, Amazon, Facebook and Google have monopoly power and "some need to be broken up”. The mood was hardly jovial.
So, as the abnormality of 2020 continues to redefine “traditional” expectations, it seems hardly surprising that vast amounts of value have been flooding into Bitcoin and DeFi protocols over these past few months. The toothpaste is out of the tube and the printed dollars are now out there. Will Zuck have the last laugh with Libra?
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The Toothpaste Is Out of the Tube
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Industry News
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Select Financings
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