Pompliano Sees Stimulus Checks as Catalyst for Bitcoin and Gold Rally
Anthony Pompliano, CEO of Professional Capital Management, believes that President Donald Trump's proposed $5,000 stimulus checks will be a win-win for assets like Bitcoin (BTC) and gold. The proposal, which would cost around $1.2 trillion, aims to boost inflation and the money supply, driving demand for scarce assets.
Pompliano argued that the more cash handouts Trump gives out, the higher prices of Bitcoin, gold, and land will go. He has repeatedly cast Bitcoin as a hedge against the debasement of the dollar and suggests people invest their stimulus checks in BTC to shift from being consumers to becoming investors.
A 2022 study by Federal Reserve economists found that fiscal stimulus during the COVID-19 pandemic contributed to an increase in inflation of about 2.5 percentage points in the U.S., although a recent study disputed this view, finding that stimulus programs accounted for less than one-fifth of the price increases during this period.