Bitcoin, as of June, probably had a less negative real interest rate than dollars. That is mind-blowing. The formula for wealth now is to borrow in dollars, buy whatever the hell you want, and damn the consequences.
Sound a little like 2007? This is no way to run a railroad, much less build a country, and I fear fatalities from this crash.
If the Fed is not contemplating an emergency rate hike right now, the entire Board of Governors deserves to be put in manacles on Constitution Avenue next to crates of rotten tomatoes.
I had mentioned in an earlier comment that I don't think they should be hiking right now. I still would hold that opinion if we had any kind of fiscal restraint by the government. We don't and we haven't for many administrations. It is up to the Fed to impose that, hard and fast, and if they don't, So Help Us God, Bitcoin makes sense.
I'm unfortunately unable to speak as I recover from COVID, but it would be wonderful if you and Mr. Salzman had the opportunity to discuss:
1) How do we run countercyclical fiscal policy when we're already running a budget deficit of 16.7% of GDP? 1.1% in 2007 and 3.1% in 2008. Similarly, our debt to GDP was 67.7% in 2008 and is now 137%.
2) Is strategic default going to be on the table within 10 years? Russia did it in 1998 and it worked out very well for them.
3) How long until we get mark-to-model for stablecoins approved by regulators?
The market reaction to today's inflation print doesn't show that the Fed risks losing credibility. They've already lost it through 30 years of ineptitude.
Now they must regain credibility if they seek to remain relevant. Does Powell even have an inner Volcker?
There's no use for crypto other than scamming suckers. A personal finance podcast interviewed Bruce Schneier the other day and I recommend listening to it in full. https://rationalreminder.ca/podcast/crypto6
One last thing and your resident financial nerd will shut up. Japan and Germany have been playing the lenders of last resort, which is gracious given that each has domestic concerns: an aging population, and the first current account deficits in 30 years, respectively.
Japan in particular has continued to maintain the Abenomics peg of low interest rates and the Western world has been saved by that since inflation struck it. Especially after the tragic death of Mr. Abe, that may no longer be politically feasible in Japan.
Bitcoin has just rallied above 20000 on a day when inflation struck 9.1%, and on stunning volume. The S&P 500 has gone green. Junk bonds too. NOBODY trusts the Fed anymore. Demonstrably. Nobody.
You picked perfect timing for a talk. I look forward to listening!
Crypto is a pyramid scam.
It's a sociology experiment. But then, Ponzi may have argued the same in his defense.
With crypto, you're gypped-o, and quote me on that -- PLEASE!
Bitcoin is real mou and with hold it's value while your dollars will be worth less with each passong year.
Bitcoin, as of June, probably had a less negative real interest rate than dollars. That is mind-blowing. The formula for wealth now is to borrow in dollars, buy whatever the hell you want, and damn the consequences.
Sound a little like 2007? This is no way to run a railroad, much less build a country, and I fear fatalities from this crash.
If the Fed is not contemplating an emergency rate hike right now, the entire Board of Governors deserves to be put in manacles on Constitution Avenue next to crates of rotten tomatoes.
I had mentioned in an earlier comment that I don't think they should be hiking right now. I still would hold that opinion if we had any kind of fiscal restraint by the government. We don't and we haven't for many administrations. It is up to the Fed to impose that, hard and fast, and if they don't, So Help Us God, Bitcoin makes sense.
Bitcoin average price over 10 years, 6,900.
I'm unfortunately unable to speak as I recover from COVID, but it would be wonderful if you and Mr. Salzman had the opportunity to discuss:
1) How do we run countercyclical fiscal policy when we're already running a budget deficit of 16.7% of GDP? 1.1% in 2007 and 3.1% in 2008. Similarly, our debt to GDP was 67.7% in 2008 and is now 137%.
2) Is strategic default going to be on the table within 10 years? Russia did it in 1998 and it worked out very well for them.
3) How long until we get mark-to-model for stablecoins approved by regulators?
The market reaction to today's inflation print doesn't show that the Fed risks losing credibility. They've already lost it through 30 years of ineptitude.
Now they must regain credibility if they seek to remain relevant. Does Powell even have an inner Volcker?
NYT is catching up.
https://www.nytimes.com/2022/07/11/opinion/cryptocurrency-federal-reserve.html
I think bitcoin and crypto always looked sketch. Housing, a tangible asset everyone needs? Only walk street could fuck that up!!
There's no use for crypto other than scamming suckers. A personal finance podcast interviewed Bruce Schneier the other day and I recommend listening to it in full. https://rationalreminder.ca/podcast/crypto6
One last thing and your resident financial nerd will shut up. Japan and Germany have been playing the lenders of last resort, which is gracious given that each has domestic concerns: an aging population, and the first current account deficits in 30 years, respectively.
Japan in particular has continued to maintain the Abenomics peg of low interest rates and the Western world has been saved by that since inflation struck it. Especially after the tragic death of Mr. Abe, that may no longer be politically feasible in Japan.
Bitcoin has just rallied above 20000 on a day when inflation struck 9.1%, and on stunning volume. The S&P 500 has gone green. Junk bonds too. NOBODY trusts the Fed anymore. Demonstrably. Nobody.
You picked perfect timing for a talk. I look forward to listening!