Morgan Creek Digital co-founder Anthony Pompliano, also popularly known as Pomp, made a live YouTube broadcast on July 18, talking about the current economic state and its future.
“In 1929, which was the beginning of the Great Depression, there was a record low unemployment of 3.1 percent, and that unemployment rose from 3.1 percent to over 8.5 percent, and then to over 15 percent over the next two years,” Pomp said. “What you end up seeing is that we have accelerated the path of unemployment faster than even in the Great Depression.
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In April 2020, there was 14.7% unemployment in the United States, an increase of 3.6% from January, according to data from Tradingeconomics.
COVID-19 caused a national commotion
Government prevention measures against COVID-19 were stepped up in March 2020, closing businesses temporarily and urging citizens to stay home. Before such measures and concerns, the United States was home to a booming economy, Pomp said.
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Innumerable companies closed temporarily, seeing their income stop, while the workers went home. Over the next few days and months, U.S. government forces implemented various capital injections in an attempt to help a stagnant economy.
“They have inflated asset prices by injecting liquidity into the market,” Pomp said. Although the stock market has made a dramatic recovery since its COVID-19-related crash, the economy still remains in a state of struggle, as evidenced by 11.1% of the unemployment figures released in June.
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Kryptonies are not saved
As much as people in the industry would like to say that crypto currencies live outside the conventional system, digital assets feel the effects of the economy. Kryptomonies could logically see fewer people investing if those people receive lower wages as a result of unemployment.
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However, contrary to logic, crypto currencies have performed well, outperforming the main Bitcoin Rush markets. Historically, assets have imitated traditional markets at times, while going their own way at other times. Given a rising stock market and a high cryptomarket since its 2020 low, unemployment figures seem to have less impact than logic might have, at least for now.