So it begins as I discussed previously. China’s Evergrande is going to cause some major financial disruptions over the next 3-6 months. Ultimately, this is what happens when debt is compounded on debt. Now it looks as though China’s sovereign rating is looking to take a hit as well.
Of course some major players are gambling on this notion. They will take no prisoners in that regard. It is the price you pay as a nation when you play in the legacy system. The same individuals who invest billions into your economy will also bet against your economy.
Sovereign debt is a double edged sword. All it takes is one institution to go belly up triggering a credit downgrade for the hedge funds to feast on. Seriously, whoever invented this game should be in prison. This is why I continue to warn others regarding this shit storm.
You see the average person is unaware of modern monetary theory. Many are clueless as to what a credit default swap is. Let alone what the repo market does. People just assume that all is well.
Well, it is financial warfare at the highest level. Sadly, many of these products nearly brought down the entire legacy system in 2009. And those who don’t learn from the past are condemned to repeat it. The nonsense that has been ongoing still continues to this day.
Fraud and deceit still occur within the legacy system. Now this is a system that is highly regulated. Yet, even the regulators are getting in on the action. See the Fed Governors stock trades, Senator insider trading, etc.
Now these people are supposed to maintain neutrality as it relates to financial transactions. Many have not. That is why when they spout out at the mouth regarding blockchain I turn a blind eye. These people don’t want to protect the consumer.
They are more concerned about control and getting their piece of the action. All the fake press releases and verbal blather amount to wasted air. The blockchain community knows where their hearts are at. Many hide behind slick verbiage to make it appear they know what’s best.
Well they don’t. The consequences of the many financial interventions have yet to fully manifest but they will. It is why counterparty risk is so dangerous right now. Trusting your money with another party could prove to be harmful to your financial well being.
Of course the financial narrative now is that all risk assets are in play. Basically a debt default within the legacy system is going to hit all risk assets. Yet, I beg to differ. Many of the blockchains have zero counterparty risk.
So why should bitcoin or any other crypto be lumped into the legacy system. Again, they are two different financial systems. One is riddled with fraud, debt, and is on it’s last legs. While the other is thriving in every since of the word.
Many of the legacy people just don’t get it. They believe that whatever impacts the legacy system should surely impact blockchain. Well, it doesn’t. Aside from fiat price and stable coins blockchain is separate from the shit storm.
Someday people will finally understand this notion. I believe that when the dust settles in China the people here will be the first to learn this lesson. Blockchain protects you from counterparty risk; not your keys not your coins.
No need to cry at a CEO’s office seeking your hard earned funds. The funds are in the safety of your own hands. Frankly, this is where they should be. Becoming the bank over the next 3 years will become an important topic.
Avoiding the false narratives that occur daily will be crucial for all blockchain participants. Much of the development in the Hive ecosystem will soon take hold. We will be at the right place at the right time.
We now have our own blockchain bank. All our staked value is compounding daily. Much of what is happening within the legacy system will impact many. Yet, we can offer an alternative to creating value.