TLDR
- Arthur Hayes criticizes ECB President Christine Lagarde and labels her a criminal for her handling of monetary policies.
- Hayes warns that the euro is on the verge of collapse due to France’s increasing debt and the ECB’s actions.
- He urges investors to convert their euros into Bitcoin as a safe-haven asset to protect against the euro’s devaluation.
- Hayes predicts a massive capital flight from the eurozone as savers move to Bitcoin and gold amid economic instability.
- He points to the poor performance of the eurozone stock and bond indices compared to Bitcoin and gold since 2021.
Arthur Hayes, the former CEO of BitMEX, recently launched a scathing critique of the European Central Bank (ECB) and its policies. In his “Bastille Day” essay, Hayes labeled ECB President Christine Lagarde as a “criminal” and accused her of running a financial system that undermines Europe’s stability. Hayes pointed out France’s economic woes and warned that the euro is nearing collapse. He urged European investors to protect their wealth by converting all euros into Bitcoin.
Arthur Hayes Criticizes Lagarde and the ECB’s Monetary Policy
In his latest essay, Arthur Hayes didn’t hold back in his critique of ECB President Christine Lagarde. Hayes referred to Lagarde as a “crocodilian ex-con countess” and called her the architect of a failing monetary system. According to Hayes, her policies are contributing to the financial instability of the eurozone.
He emphasized that the ECB’s continuous printing of money, which began after the 2008 financial crisis, is set to worsen. “The euro is an absolute stinking piece of sh*t,” Hayes declared, criticizing the shared currency. He argued that the ECB’s monetary policies have exacerbated France’s debt crisis and led to a severe imbalance between eurozone economies.
With his sharp words, Hayes suggested that France’s financial troubles were largely a result of the ECB’s actions. He believes the ECB will be forced to print even more money to save struggling economies, which will devalue the euro. For Hayes, the solution lies in Bitcoin, which he sees as a safe-haven asset that will rise as the euro declines.
France’s Economic Crisis and the Euro’s Imminent Collapse
Hayes painted a grim picture of France’s economic future. He pointed out that France’s debt has reached unsustainable levels, and French savers are fleeing to safer assets in Germany and Luxembourg. He cited TARGET balances from January 2020, showing that France has shifted from a surplus to the largest deficit in the eurozone.
The former BitMEX CEO also referred to the history of economic crises in Europe, comparing the current situation to the downfall of the French monarchy. Hayes argued that the collapse of France’s finances is part of a broader systemic issue with the eurozone. He contended that France’s massive foreign-owned debt and the ECB’s reluctance to take drastic measures are creating a ticking time bomb.
According to Hayes, the eurozone is now in a precarious situation, with France trapped in a spiral of debt and devaluation. He warned that France’s economy will either default or rely heavily on the ECB’s money printing to survive. However, such a scenario would only further damage the euro, he said, pushing investors to seek alternatives like Bitcoin.
Hayes Predicts Massive Flight from the Euro, Bitcoin as the Winner
Arthur Hayes anticipates that France will face massive capital flight, with trillions of euros leaving the country in search of safer assets. He predicted that French savers will soon convert their savings into Bitcoin and gold, both of which he sees as immune to the euro’s decline. He warned that the euro’s impending collapse will trigger a massive “risk-off” event, affecting EU stocks and bonds.
“The eurozone is in trouble,” Hayes said, citing poor performance in major eurozone indices like the EuroStoxx 50 and EuroAgg Bond Index. These indices have underperformed relative to Bitcoin and gold since 2021, he noted. Hayes suggested that as France imposes capital controls, other European nations will follow suit, leading to a widespread exodus from the euro.
He urged investors to act quickly, as he believes the euro will soon undergo significant devaluation. “Move your savings into Bitcoin now,” Hayes urged, emphasizing that Bitcoin will thrive as the euro collapses. With France’s financial crisis intensifying, Hayes predicted that Bitcoin’s value will surge, making it the clear winner in the coming economic upheaval.
