Americans’ Inflation Worries Up, 29% Still Under Golden USD Illusion - Survey
Surveyed Americans are increasingly worried about inflation as the Federal Reserve’s money printers go into full brrr mode, per a new survey – although 29% are still laboring under the illusion that the greenback is still backed by gold.
These were the findings of a report conducted by hashpower provider Genesis Mining. The firm quizzed 400 Americans on their views on July 28, asking them about their understanding of the financial system, their trust of financial institutions and beliefs about money – as well as their views on bitcoin (BTC) and other cryptoassets.
As the United States looks to fight back against a coronavirus pandemic-induced recession, the survey respondents said they were concerned that government money-printing efforts will spark inflation, with 73% agreeing that the government had “added” money to help fight COVID-19. Over half stated that they were “somewhat concerned” by the prospect of dollar inflation, with a further 35% saying they are now “very concerned.”
In September, the Fed said that it will keep the main interest rate in the range of 0% to 0.25% until the labor market has reached the Fed’s definition of “maximum employment,” and the inflation rate has risen to, and remained above, 2% “for some time.”
The central bank justified its plan of allowing inflation to move above 2% by saying that inflation has been “running persistently below” the previously stated long-term goal of 2%. As a result, a temporary jump in inflation is, in the Fed’s view, needed to get back to this long-term goal.
Asked about the assets that backed the USD, the largest share of respondents answered they thought the currency was backed by the United States government, at 42%, while almost three in 10 thought gold underpinned the USD.
President Richard Nixon put an end to the gold standard back in August 1971.
The Genesis Mining report authors wrote,
“42% [of respondents] answered that it’s backed by the US Government, which is up from 30% last year. But 28.5% said it was backed by gold, which is about the same percentage as our survey last year — which we now know is incorrect — and the remaining 30% answered that they thought it was backed by either oil, bonds, or nothing, or they just didn’t know.”
Last year’s Genesis Mining survey yielded similar results regarding gold’s perceived role in backing the USD, with 29% of respondents saying they thought the currency was gold bullion reserves.
There were also some frank responses as to what people believe supports the greenback: 12.8% confessed that they “don’t know,” what backs the USD, over 7% said they thought “nothing” underpinned the currency – while smaller numbers suggested bonds (5%) and oil (4%).
Also, when asked what their thoughts were regarding Bitcoin (BTC) and cryptocurrency, the largest response at 35% was that it’s an “interesting idea that may have potential but too early to tell” — even though Bitcoin was created in 2008.
According to the authors of the survey, "there’s a great opportunity to educate others about where their money comes from and where it goes, how banking systems work, and how Bitcoin and cryptocurrency can play a major role in elevating and advancing our usage of money going forward."
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