China eyes $1.5 trillion plan if Trump wins US elections

China’s National People’s Congress (NPC) is set to discuss a massive $1.5 trillion fiscal package next week, with the possibility of fast-tracking it if former US President Donald Trump wins the upcoming election. 

The NPC Standing Committee will convene from November 4 to 8 to deliberate raising over 10 trillion yuan through special treasury and local government bonds. 

According to sources cited by Reuters, the proposed package aims to allocate around 6 trillion yuan for local government debt relief and 4 trillion yuan for purchasing idle land and properties. 

This move follows earlier reports of China’s $142 billion fiscal aid package and is seen as an effort to inject liquidity into the country’s economy amid ongoing financial challenges. 

Market observers believe that a Trump victory could expedite the fiscal plan due to concerns over the already tense US-China relations. 

The substantial liquidity injection is expected to add fiscal uncertainty, potentially affecting global markets and cryptocurrencies like Bitcoin (CRYPTO:BTC). 

Analysts have speculated that China’s stimulus package could boost Bitcoin demand due to heightened currency uncertainty. 

Kyle Chasse, a prominent crypto analyst, expressed this sentiment on social media, describing the situation as “money printer about to go parabolic.” 

His statement reflects the belief that increased liquidity may drive investors towards alternative assets like Bitcoin, especially in times of currency instability. 

Arthur Hayes, co-founder of BitMEX, echoed this perspective, predicting that China’s potential quantitative easing could trigger a Bitcoin surge. 

In his recent blog post, Hayes highlighted Bitcoin’s resilience during periods of currency debasement, stating, “No other asset class outperforms the debasement of the currency like Bitcoin does… As long as fiat is created, Bitcoin will soar.”