Bitcoin; Prepare for Hyperinflation before it is too late. The Fed cannot control Inflation!
The above posted Inflation Reduction Act which just passed today. Is $750 Billion, funded by money printing. It will increase US taxes, and increase IRS oversight, and do nothing to fight inflation. Most of the money will be laundered, and it will add to government debt, and the make the reserve balance of the Fed grow above the $6 trillion mark. See the chart below, where it shows the Federal Reserve balance growing from $1 trillion to $6 since 2008:
Then, look at the Bank of Englands reserve balance, growing from $30 billion to over $1 trillion since 2008:
Then, look at the Baltic Dry Index which measures overseas shipping. This index is down 54% for 2022 and nearly as low as the 2020 corona virus impact levels. Raw materials, especially from China, are NOT shipping. What is this going to do to inflation? What impact will it have on the supply demand balance? When the largest economies in the world are shipping 54%, less raw material, while real inflation is 18% to 20% (US), and much higher in Europe. This will eventually lead to inflation ramping up at a higher pace. Right now the US has been keeping Gas prices down by draining out the SPR (Surplus Petroleum Reserve). Once that is gone in 2023. We will see massive inflation spikes, massive! Below is the Baltic Dry Index forecast:
We have heard from a former Federal Reserve employee, who mentioned that in order to really control inflation, the current Fed Funds Rate would need to be over 30%! It is 3% now.
“Inflation has 𝗻𝗲𝘃𝗲𝗿 come down from above 5% without Fed funds rising above CPI” -- which is 9% right now - Stanley Druckenmiller
The DXY chart, USD index, has now dropped below the trend line and it will pick up speed in that direction now that the Inflation Reduction Act has passed:
Blackrock with $9 trillion in assets under management has partnered with Coinbase to offer Crypto and Bitcoin to it’s institutional investors. Blackrock can see the writing on the wall. It is getting close to the point when institutional investors, and especially the sovereign wealth funds run for the exits. Run! The monetary system is sinking, globally, view on Twitter.
Bitcoin balances over 1 Bitcoin have never been higher:
Bitcoin has tested the 200 day moving average, and that is now support. We believe Bitcoin may test this a few more times in 2022 before really taking off later next year. The time to board the life boat has been this year. Those who wait to next year, and beyond will get diminishing returns the longer they wait. Here is the 200 day moving average as support on the Bitcoin chart:
Thanks to rekt capital for this chart. We are not financial advisors and this is not financial advise. Inflation will start mounting like a Tsunami. Think of the Fed Funds Rate (currently at 3%) as a Dam of sand bags. It cannot hold up. They can kick the can down the road, but long term, inflation will destroy the monetary system, and the cracks in the foundation are getting more and more obvious! Board the life boat. Bitcoin is an alternative system made to save mankind from hyperinflation which is inevitable, using a real world metric. Not 50% inflation per month which is the IMF definition. Hyper inflation will feel real to all of us around 50% per year. So board the life boat while you still have a chance!
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