With Monkey Business Blog and TK Contributor Eric Salzman, discussing stablecoins, solvency, and bad memories of 2008
Crypto is a pyramid scam.
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 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?
NYT is catching up.
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!