Arthur Hayes, the co-founder of BitMEX, has suggested that the U.S. Federal Reserve might be forced to resort to massive money printing to fund potential military involvement in a conflict with Iran. Hayes argues that should geopolitical tensions escalate into a direct confrontation, the Fed would likely expand its balance sheet to provide the necessary liquidity for defense spending and to maintain economic stability. He posits that this resulting increase in the money supply would likely lead to significant inflation, potentially acting as a major catalyst for the price of Bitcoin and other decentralized assets as investors seek hedges against currency debasement. According to Hayes, the financial requirements of modern warfare could trigger a new era of quantitative easing regardless of current interest rate targets.
Source: Fed could print money to support US conflict with Iran, says Hayes
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