Digital Asset Guru: 'US Cheap Funds No Printing' Era Explained

Matichon•Economy•223d ago

Reader Briefing

Digital asset expert discusses the US economic outlook of lower interest rates without quantitative easing and its impact on various asset classes.

•Dr. Udomsak Rakwongwan, a digital asset guru and academic, analyzed the US economic scenario where interest rates are low but the Federal Reserve is not engaging in quantitative easing (QE).
•The expert predicts a scenario of rate cuts without money printing, which differs from previous expectations of aggressive QE.
•This shift is expected to lead to short-term asset price declines, but potentially a more sustainable bottom-up growth in the long term, with benefits for profitable companies and potential challenges for speculative assets.
•The analysis also touches upon the impact on the US dollar's value and confidence, as well as the future for digital assets like Bitcoin.

Overview

•Dr. Udomsak Rakwongwan stated that the US is entering an era of 'cheap funds but no money printing,' contrary to previous expectations.
•The analysis is based on the perspective of former Fed Chair Kevin Warsh, who disliked QE, and the desire of Trump for rapid rate reductions.
•The expected outcome is a reduction in interest rates without quantitative easing (QE) due to these influencing factors.
•In the short term, all assets, including gold, are expected to see price declines as the market had anticipated significant money printing by Powell.
•For the long term, rate cuts are seen as beneficial for grassroots economic growth (bottom-up) in contrast to the unsustainable top-down growth driven by QE.
•Simultaneously cutting rates and engaging in QE could lead to significant problems, particularly inflation, as rate cuts already boost inflation.
•The US dollar should weaken but avoid losing 'faith'; while rate cuts weaken the dollar, QE would further devalue it, potentially impacting confidence.
•Profitable, growing companies, especially in tech and healthcare, are expected to benefit as lower discount rates increase their future valuations.

Full article content is available on the original source.

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Source: Matichon (Original)

Key Quotes

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"What we will see from now on is likely rate cuts, but no money printing (QE)."

สิ่งที่เราเห็นหลังจากนี้คงเป็น ลดดอก แต่ ไม่ปริ้นเงิน (QE)

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"Rate cuts will make grassroots people truly feel more comfortable, enabling bottom-up growth."

การลดดอก จะทำให้คนรากหญ้าจริงๆ รู้สึกสบายขึ้น เป็นการโตแบบ bottom up

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"Rate cuts will naturally cause inflation to rise, but further QE would exacerbate the problem."

การลดดอก ย่อมทำให้ inflation ขึ้นอยู่แล้ว แต่การ QE ไปด้วยจะยิ่งมีปัญหามากขึ้นไปอีก

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"The dollar should weaken, but it should not lose 'faith'."

ดอลล่าห์ ควรอ่อนค่าลง แต่ไม่ควรเสียความ 'ศรัทธา'

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"Assets that will start to benefit are likely those companies with real profits and continuous growth."

สินทรัพย์ที่จะเริ่มได้ประโยชน์คงหนีไม่พ้นหุ้นที่มีกำไรจริงๆ และเติบโตเรื่อยๆ

ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน

"For digital assets, BTC might see short-term gains when rates fall, but with no global liquidity increase, we may not see the strong growth previously expected."

สำหรับสินทรัพย์ดิจิทัล สำหรับ btc คงได้ผลดีระยะสั้นเมื่อดอกลง แต่เนื่องจาก liquidity โลกไม่เพิ่ม ก็อาจจะทำให้เราไม่ได้เห็นการเติบโตรุนแรงเหมือนที่เคยคาด

Key Entities

Person

Dr. Udomsak Rakwongwan(ผศ.ดร.อุดมศักดิ์ รักวงษ์วาน)

Co-founder and advisor of Forward – Decentralized Derivatives Platform and Forward Labs, and a lecturer in Mathematics at Kasetsart University, providing expert analysis on digital assets and economic trends.

Kevin Warshℹ️

A former Federal Reserve Chair whose views on Quantitative Easing (QE) are cited as a factor influencing the US economic outlook discussed in the article.

Trumpℹ️

Mentioned as desiring rapid interest rate reductions, influencing the US economic policy discussion.

Powellℹ️

Mentioned in the context of market expectations for money printing by the Federal Reserve.

Organization

Forward – Decentralized Derivatives Platform

A decentralized derivatives platform for which Dr. Udomsak Rakwongwan is a co-founder and advisor.

Forward Labs

A blockchain technology lab for which Dr. Udomsak Rakwongwan is a co-founder and advisor.

Kasetsart University(มหาวิทยาลัยเกษตรศาสตร์)ℹ️

The university where Dr. Udomsak Rakwongwan serves as a lecturer in the Department of Mathematics.

Policy

Quantitative Easing (QE)(QE)ℹ️

A monetary policy tool involving money printing, discussed as a contrasting factor to interest rate cuts in the US economic outlook.