I love the smell of Napalm in the morning! Everywhere I'm looking on social media it would look like pandamonia! Everything seems to be deteriorating at a rapid pace. If you were to travel to say Venezuela, what would people be taking for a method of payment? Well the USD of course! Central banks are just crushing the economy. What an amazing thing to witness.
We live in such an upside down world. Print print print and yet somehow cash is still king. The holiday's are coming up so I'll write a little more than I usually do as I'm going to have a lull in my posting. Looks like #HBD in #HIVE is a good bet, but aren't they coming after stable coins?
The black swan of 'covid' showed how deflation just absolutely smacks down cryptocurrencies. Then governments all around the world flooded business and people with 'free' money and plenty of time on our hands. Crypto's didn't perform very well in a deflationary environment. We are in an incredible deflationary event with Central banks raising rates and Quantitative Tightening. It would be an incredible magic trick to see the Federal Reserve manage the debt on 4% interest and many of us questioned this at the beginning of the whole 'tightening' campaign.
Gold and Silver did very well during the Covid Crash, but it doesn't seem to be a safe haven at least compared to the USD. This is actually the issue. If you were to compare #GOLD and #Silver in other currencies you are not doing as bad. Don't get me wrong, I'm bullish on the precious metals because they do act as a safe haven during crisis.
Looking at the price of things right now is like judging a bikini models IQ level. You really can't judge from what's on the surface. Don't get me wrong, that bikini model could have beauty and brains but we are only judging what's on the surface. The iceberg goes deep!
So yes you want USD currency compared to every other currency. Cash is not king when your fiat loses value. USD is losing value but is not sinking as fast as all others. The 10 Year is also showing a flight from the Debt market and going into cash (USD) and pushing safe havens like Gold and Silver down.
Don't fall for it. Asset prices are absolutely going to get crushed. We know the general population are not too big to fail. The banks know they have this in the bag as they already have the track record to be pulled out of bankruptcy. Who else will buy the depressed assets?
So I will end this with some Lord of the Rings. It doesn't matter the consequences of doing something absolutely so stupid. The consequences of too much power may contribute to the overall chaos, but the rush any gambler gets becomes more reckless when you are bankrolled by corrupt powers.
If I were to place bets on the future, I do believe this is a controlled demolition. The consequences of such pop all of the bubbles formed in the past 12 years. The pain will be so great the central banks will have to do one more round of crazy printing. At that point perhaps war, perhaps riots and 2-tier societies form. The printing will trickle to the powers that be and they will own all the depressed assets and we will own nothing and be unhappy.
Happy new year!