The COVID-19 pandemic will forever be remembered as a major event in human history. This COVID-19 crisis will have called into question all the certainties that hundreds of millions of people thought they had. The economic crisis triggered by this pandemic will also go down in history.

The decisions taken by governments and central banks to fight the devastating effects of this economic crisis will have highlighted more than ever the flaws of the current monetary and financial system.

If all the central banks of the world's major economic powers have resorted to printing money and governments to massive public debt, one country has distinguished itself even more than the others in the category of bad pupils.

This country is the first world power: the United States.

America has printed $5 trillion out of thin air in the last 18 months

The figures speak for themselves. To understand the magnitude of the problem, you just have to look at the evolution of the M2 Money Stock over the last decades:

America M2 Money Stock evolution - Source: The Fed

More than 35% of all American dollars currently in circulation have been printed since March 2020.

This massive printing of US dollars has allowed the US government to go into debt to better cope with the economic crisis. The CARES Act alone, which Donald Trump passed in March 2020, will cost American taxpayers more than $2.2T.

This is more than 3 times the stimulus package passed by the US during the Great Recession of 2009.

U.S. public debt heading inexorably toward $30 trillion

As of this writing, the US public debt is over $28.6 trillion:

US National Debt

This represents almost 130% of the US GDP. The days when having a debt to GDP ratio exceeding 100% was something of a taboo seem to be over. The $30 trillion mark will undoubtedly be reached in the coming months as Joe Biden is expected to pass an infrastructure plan in the US.

All of these economic measures have had a major impact on America. For the first time in the country's history, it has become more lucrative for American workers to stay at home rather than work in restaurants or stores.

The second negative effect of this great monetary inflation is now occurring.

Inflation reaches record levels in America

Inflation is at its highest level in nearly 30 years in the United States. After exceeding 5% in May 2021, it rose to 5.4% in June 2021. While the Fed is trying to calm things down by talking about transitory inflation, the situation is much more worrying for most economic observers.

The CEO of BlackRock believes that the problem is systemic and that extremely high inflation will persist in the months to come.

We all know that once inflation reaches such high levels, it is very difficult to turn back. This could become a lasting pattern. Jerome Powell, the Fed Chairman, says it all if you can read between the lines:

“I will say that these effects have been larger than we expected, and they may turn out to be more persistent than we have expected. But the incoming data are very consistent with the view that these are factors that will wane over time, and inflation will then move down toward our goals and we’ll be monitoring that carefully.”

The Biden administration is also extremely concerned about the situation and stands ready to act if necessary to address the challenges this poses to the American economy.

Many see America as the new Weimar Republic

For more and more people, America is becoming the new Weimar Republic.

After World War I, Germany was enjoying a period of prosperity as a modern, robust superpower with an industrialized economy. All the indicators were green. And then, hyperinflation took hold of the country.

At the root of this hyperinflation were two classic ingredients:

• An impression of money out of thin air without any limits.

• A massive debt.

The demands for reparations included in the Treaty of Versailles following the First World War greatly accelerated the decline in the value of the mark. The value of a gold mark in paper marks soared between 1921 and 1923 with a phenomenal acceleration in 1923:

Value of one gold Mark in paper Marks - Source: Wikipedia

This situation caused considerable internal political instability in Germany, which allowed the rise of the extremes and created the conditions for Hitler to come to power a decade later.

The American dollar system is inexorably crumbling

Of course, we are not there yet in America.

Many will argue that there was no world war to create the difficult economic conditions that led to hyperinflation in the Weimar Republic.

However, one must imagine that the COVID-19 pandemic had similar effects on the economy as a world war. This time, the adversary is a virus that is invisible to the naked eye. The current situation must be taken seriously as the American economy seems to be mired in something untenable in the long run.

The distrust of the American dollar is more and more felt around the world. Russia has finally ended its exposure to the US dollar at the end of the first half of 2021. Other countries will undoubtedly follow suit in the future.

Bitcoin is your way out to protect your future regarding money

As an individual, you need to protect yourself against what may happen in America in the coming years. Nothing says that the situation will go as far as it did in the Weimar Republic of course. Yet, you absolutely must take precautions to protect your future regarding money.

It is your duty.

Many will tell you that gold is the solution to protect you from this hyperinflation. The people who will tell you this are those who do not see the world that is changing or do not want to make the effort to adapt. In a world where everything will become digital, it is obvious that gold is no longer the optimal solution.

That optimal solution is represented by a newer system that optimizes the transfer of value across time and space.

That system is Bitcoin. Bitcoin is an encrypted P2P currency that gives power back to the people over the fruits of their labor. More and more of the world's biggest financial names are coming to embrace Bitcoin. That's a sign that the opportunity is real and you should consider it or you'll have eternal regrets in the future.

Best of all, Bitcoin allows you to protect the fruits of your labor from censorship. Once you have the private keys associated with your Bitcoin, no one can take it away from you and prevent you from using it as you wish.

You'll truly be in control of your destiny. You will no longer have to fear the absurd decisions of politicians who are leading America straight into disaster.

Final Thoughts

Finally, even if you are not an American, the situation is the same because the US dollar is the world's reserve currency. The collapse of the U.S. dollar is likely to bring down the current monetary and financial system.

Having the fruits of your labor protected within the Bitcoin network will help protect you from this situation. This is the best way to go right now. More and more people will realize this in the months and years to come.

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