A Devalued Government - E208

03/23/20 • 15 min

In this episode I use a tweet by Pierre Rochard and a video from Daniel Hannan as a jumping off point to talk about globalization, the growing distrust in our institutions, non-monetary rewards, and what this current crisis will lead to.

Links:

Pierre's tweet: https://twitter.com/pierre_rochard/status/1242103963287203840

"If everyone added to their cash balances during the good times, they wouldn't need to beg politicians and central bankers for bailouts during the bad times. But inflation penalizes cash balances. This is why we #Bitcoin."

Daniel Hannan video: https://www.youtube.com/watch?v=94lW6Y4tBXs

Website: https://bitcoinandmarkets.com/e208

Links:

Pierre's tweet: https://twitter.com/pierre_rochard/status/1242103963287203840

Daniel Hannan video: https://www.youtube.com/watch?v=94lW6Y4tBXs

Website: https://bitcoinandmarkets.com/e208

Previous Episode

Fed Panic Dollar Melt Up - E206

In this episode, I break the news that the Fed has cut interest rates to zero and launched QE 5. The Fed is not in charge of interest rates, they follow the market. Interest rates were already close to zero in the market, so this move by the Fed was reactionary. They have lost control. I also talk about currency swaps and how to position yourself for the coming financial reset.

Image link: https://bitcoinandmarkets.com/wp-content/uploads/2020/03/ust-vs-fed-funds.png

News article: http://archive.vn/H92Ea

Transcript of rate cut: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315a.htm

Highlighted transcript of rate cut: https://hyp.is/go?url=https%3A%2F%2Fwww.federalreserve.gov%2Fnewsevents%2Fpressreleases%2Fmonetary20200315a.htm&group=__world__

Transcript of liquidity announcement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315c.htm

Next Episode

General Update, Virus, Dollar, China and Japan - E209

In this episode I discuss the bullish case for bitcoin being driven by QE but not via a weaker dollar. The dollar will continue to strengthen in a volatile way. Bitcoin will be bid because the traditional market will get worse and worse at price discovery and bitcoin will get better and better. I bring in two articles. The first one is about China's consumer credit bubble popping and the second is about primary dealers in Japan refusing to sell their JGB's to the Bank of Japan. That effectively stops QE as a weapon of the central bank. The primary dealers would rather use their JGB's in dollar swaps with the Fed.

China consumer credit: https://www.zerohedge.com/economics/scope-pain-immense-chinas-consumer-default-tsunami-has-started

Japanese bonds: http://archive.vn/ao4qM

Website: https://bitcoinandmarkets.com/e209