$ETH 🔥ETH > $4200, and Arthur Hayes believes that the USA will print $9 trillion in the next 2-3 months, and some of it will go into crypto.
Here are the main arguments he presented in a recent interview:
The USA is in a debt trap
⚪️Just to rescue the mortgage market (Fannie & Freddie) about ~$5T is needed. Plus adding the bank rescue - we get an even larger amount. Hayes says: "This is not a matter of opinion, but of mathematics".
Old assets are no longer needed
⚪️The baby boomer generation has to sell off assets to secure their retirement. But the younger generation is not interested in their overvalued real estate and dividend stocks.
⚪️If there is no demand for boomer assets, the government is forced to print money to create artificial demand, and supporting asset prices becomes a political necessity, not an economic choice.
Outflow of foreign capital
⚪️Many countries have started moving money out of the USA due to tariffs; when foreigners leave, the Fed remains the only buyer of assets - leading again to mass issuance.
⚪️The USA relies on a constant influx of capital, when it stops, they will always choose inflation over deflation.