"peddling blue meth"
Should add "on a high wire"
Can understand objective of stimulus through asset prices but can it actually work?
Amplified wealth disparity is already splitting society while econonomic meth tolerance builds.
Can someone explain to me why wouldn't the government just keeps on borrowing money while interested is negative? They can effectively reduce their defecit this way. Sure they might take a hit with exchange rate initially but if everyone does the same thing it shouldn't really matter.
> Anyone that says “cash is dead” is delusional. Cash is not going anywhere for at least the next few generations.
few years sure, few decades probably, but generations?
Just 20 years ago it was crazy to sell things over the Internet.
Cash is tied deeply into the banking system, and people think banking is just gonna go up in smokes in 50 years? Cash has just started its evolution into "cashless," digital versions, and its got a long way to go. I really don't understand anyone that says crypto is going to replace cash. Why can't they live side-by-side, each with its own usage? People who want crypto to immediately replace cash are gamblers that just wanna get rich quick.
Powell's rhetoric last year was pretty hawkish, but when 99% of people he talks to started screaming at him to prop up the stock market by lowering rates and stopping balance sheet reductions, it seems that he completely caved. This is an illustration of how the Fed can probably never really reform itself. Its easy money is like heroin to basically everyone who touches the fiat economy -- it feels great, but it sure isn't good for you --, and there just isn't enough will to stop it. A central bank can't work perfectly due to the economic calculation problem, but it even fails at doing what it's meant to do because it's run by men, not angels.
If the Fed does another years-long easing cycle, that might delay a recession for a while. I've been thinking that a recession might cause a BTC price slump (because people would have less disposable income, and investors would rush into the stock market), so Fed easing is probably good news for BTC hodlers. Low rates, inflation fears, and a "running on empty" market will push people to high-risk things like BTC, I'd expect.
Three years ago analyzing bitcoin in terms of macro trends would have sounded ridiculous. Today it just seems mildly ridiculous but it is on the table, and after the next hype cycle it won't seem ridiculous at all. That is when we will begin to get the glimmers of next great narrative that slowly begins to capture the imagination of the world over the coming decade: that an automated global accounting system not controlled by any government might, just might, represent the replacement for the current paradigm. And crucial to this rising narrative will be the simultaneous decline of the fiat system. One critical component of that decline will be the loss in confidence with central bankers and human policy makers, and we are witnessing the first steps in that direction today. 2008 and QE put central banks on center stage, and they were viewed as the saviors of the economy. But that narrative may quickly shift if it becomes felt that the policies of central banks actually made things catastrophically worse in the long run.
About to say - they seem fairly *inclusive.*
At the end of the day it isn't the Fed's job to solve inequality though, that's the federal government's job. Redistribution via spending and taxes, etc.
Monetary policy, fiscal policy, credit policy, etc are all linked together as moving pieces of the economic machine. Every piece needs to function in order for things to work smoothly. When one more more of these mechanisms breaks the machine starts to run cattywompus.
Yep, borrow as much cheap fiat as they'll lend you while it still has value and buy Bitcoin.
You're wrong about cash though. Physical cash will be more valuable in the early days (the first year) of the crisis when the bank networks go down. Everybody should keep some physical cash in small bills.