Did The Fed Just Give Bitcoin The Biggest Vote Of Confidence

Hey Jessocialists

As the economy continues to collapse around the world due to lockdowns, we couldn't afford to set off what will be the worlds biggest insolvency event; governments are thinking its business as usual. Instead of accepting, we made a mistake and that the debt cycle now needs to reset, take the short term pain for a few years and build out a new healthier, more robust economy.

They decide all over the world unilaterally; let's continue to keep the debt cycle going by printing more money. The money printing is used to keep the status quo, keep up asset prices and continue the lie that we've been fed, as well as to repay the obligations of the baby boomers pensions.

But that's a story for another day, all you need to know is that stimulus, loans, quantitative easing, repo markets, are all going to continue to explode with new cash over the next few months and even years.

Social unrest

As insolvency takes hold, debts are not being paid, bag holders across all the financial economy and ordinary people are now stuck without money. Money to live, money to pay debts, money to well do anything and they're freaking out.

Yes, they may not realise it, yes they talking about social and civil rights, but at the end of the day when your life is threatened and your going hungry, you're going to be angry and lash out.

I tend not to read too much into these protests as they are a symptom of people not understanding how the system works and how the wool is pulled over their eyes, so they're picking something they understand like the police and focusing their anger on it.

Governments feel they need to calm these situations down by either offering helicopter money or putting people to work, which means they need to inject money into the system. They have and continue to do so in the trillions, and well, it has not stopped the decline.

While under Obama the TARP bailouts were only a few billion in comparison, as they've let the system limp on for over ten years, the ability to cover up issues with money printing becomes exponentially harder.

Overshooting could be a misfire

If 5 trillion is not making a difference, more will have to, or so they think. The US Fed has come out and said they're going to run the economy hot and pump as much money as they think they need, overshooting inflation targets to get it going.

Trying to control billions of people and what they do with money is far harder than central banking can handle and trying to overshoot inflation can quickly turn into hyperinflation.

Room for more money printing

As countries around the world struggle and continue to borrow money to survive, they debase their currencies like there's no tomorrow. This allows room for the G4 banks to open up and dump more funny money into the system to try and match up the debt obligations and reduce its nominal terms.

It's a race to the bottom and everyone just decided its time to run a little faster.

Stealing from the poor to give to the rich

The call to run the US hotter than normal means others will feel its okay to do the same, more countries will overshoot their inflation targets.

This is theft, and theft in the worst kind, it effectively takes the purchasing power from the bottom 20 - 50% depending on your countries Gini-coefficient and asset to cash holding ratio of the public and moves that purchasing power to the asset holders.

Running hot inflation means, you're going to push so much money into assets and that purchasing power is going to need a new home. While all asset prices will go up if this does play out, what we are going to see is what happens when unlimited stimulus meets provable scarcity.

Bitcoin has very little liquidity compared to ALL Fiat, and if 1% or even half a % of all this new fiat finds its way into BTC, it's going to trigger valuations you cannot fathom.

I honestly don't care what people want to invest in; all asset prices are going to go up when running the economy with this kind of policy. The idea here is to diversify in various asset classes, so you gain a bump across a spectrum and to get out of cash slowly.

I know I sound like a broken record, but every time I look at the news its as if they creating the perfect storm for BTC

• Low or negative interest ratees
• More money printing
• Over inflated markets that are now working inefficiently and overvalued
• Overshooting inflation.

As A Bitcoin holder, you couldn't ask for more, sadly as a average joe and jane in cash, you couldn't ask for worse.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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