Money Printing Looms as Wall Street Moves On-Chain

Arthur Hayes, chief investment officer at Maelstrom, recently spoke about the potential for US policymakers to rely on additional money creation to support AI-driven infrastructure spending and absorb government debt. According to Hayes, this could have a positive effect on risk assets, including cryptocurrencies.

Hayes linked AI's financing needs to broader economic constraints, noting that companies require large sums to build and operate data centers needed for the next wave of services. He argued that policymakers have limited options beyond expanding the money supply, stating 'They've not really given themselves a lot of options other than print money and make it less bad.'

Hayes also mentioned China's potential shift towards more substantial stimulus, which could revive demand for scarce assets. In Europe, he is watching financial stress indicators in France, including credit-default swaps tied to BNP Paribas and the spreads on French government bonds.