Commodities Parabolic, Bretton Woods III, Flight to safety; Bitcoin

This will be our most controversial blog yet.  We had plenty of help from third party sources.  Lyn Alden, our favorite global macro analysis sent this on twitter recently.  The Shiller PE Ratio nearing all time highs:
 

PE ratios this high, front run a recession.  This is an obvious sign.  However, the commodities picture is different.  It gives us more insight.  First Nickel, which hit $100K/Ton is in a short squeeze:

 

 

See the price highlighted in green.  It is 90 degrees, straight up!  Steel is going to climb as well due to this.  We already showed lumber prices last week.  So new homes construction is going to drop off even further.  Yet home prices are breaking records:

 

 

Price levels are breaking the housing bubble levels in 2004.  Home price appretiation is going to climb even higher under this commodity inflationary market.  Biden announcing today that Gas imported from Russia is now banned.  That is going to create an inflation rate much higher among these commodities! 

 

The US Dollar will be devaluating so that the debt can be paid back at devalued rates.  This could lead the US straight into hyperinflation!  Scary thought.  Gold is parabolic already and hitting all time highs:
 

Wheat (imported from Russia) is parabolic, and breaking the ATH since 2008.  Food inflation is here:

 

 

With this sanction on Russian Oil being imported into the US, this WTI Oil price will climb to $200/bbl:

 

Electricity in Europe is at all time highs.  This crisis in commodity inflation is global!:

 

 

What we are seeing is the end of the US Dollar.  It is being brought on by two world leaders.  Putin in Russia and Xi in China!  Chine WILL invade Taiwan in the near future.  Watch for that.  We are hear to discuss the financial side of things.  No politics here.  Yet, these sanctions are hastening a crash in stocks and a US depression.  If Jerome Power, Fed chairman announces rate increases next week going into this kind of financial weakness, that could tip the stock market over the edge by late next week!  It won’t take long!  Then the US could have commodities soaring out of control (food, electricity, gasoline, home prices, rent).  While at the same time a massive stock market crash and housing market crash with it.  We thought in 2021 that this crash would begin late last year.  Looks like it will start soon in 2022.  These sanctions are making it much worse for everyday Americans.  Right now the DXY index shows the dollar is strong.  It will at some point reverse course and drop like a stone.  That will be the signal when Gold and Bitcoin hit the short squeeze and go parabolic.  

 

Will Russia start a mining bond for Bitcoin like El Salvador did?  They could have sold their Oil for Bitcoin to the US Oil companies.  Now they will possibly do that in other countries, like Europe.  We bring up a Russian mining bond because El Salvador’s valcono mining bond is doing so well.  See this chart:

 

 

28.5% bond yields for the ONLY country in the world that has officially made Bitcoin legal tender.  Mexico and Paraguay are likely to be next.  We expect some form of US sanctions against Bitcoin so that Russia cannot go around the USD, using Bitcoin, when trading with the US.  If Biden sanctions Bitcoin, that will send the price parabolic.  We can see how some people may fear US sanctions, and since they have not been announced, we don’t know anything.  Yet, yesterday’s blog stated peer to peer Bitcoin and non KYC Bitcoin through mining it, and using foreign exchanges still works even if all US exchanges are sanctioned.  No government can freeze offline privately held Bitcoin.  So hold your own keys and keep all Bitcoin OFFLINE!  Even the worst case sanctions against Bitcoin from Biden could NOT make Bitcoin die.  It may crash the price from here for a while.  We will HODL through it!  So, do not fear any government or central bank authority.  Bitcoin is seizure proof!  Here is an experienced insider from Credit Suisse remarking on this situation in the global macro markets right now.  Thanks to Anthony Pompliano for this quote on his newsletter today:

 

Zoltan Pozsar of Credit Suisse:

 

“The true problem here is not liquidity per se. Liquidity is just a manifestation of a larger problem, which is the Russian-non-Russian commodities basis, which only China will be able to close. 

Do you see what I see? Do you see inflation in the West written all over this like I do?

 
This crisis is not like anything we have seen since President Nixon took the U.S. dollar off gold in 1971 – the end of the era of commodity-based money.

 

When this crisis (and war) is over, the U.S. dollar should be much weaker and, on the flipside, the renminbi much stronger, backed by a basket of commodities. 

 

From the Bretton Woods era backed by gold bullion, to Bretton Woods II backed by inside money (Treasuries with un-hedgeable confiscation risks), to Bretton Woods III backed by outside money (gold bullion and other commodities). 

 

After this war is over, “money” will never be the same again… 

 

…and Bitcoin (if it still exists then) will probably benefit from all this.”

 

Bitcoin is the life boat and safe haven to mitigate all of this risk from Russia Ukraine and the aforementioned China Taiwan crisis, which has not started yet.  We see Ukrainian and Russian citizens flocking to Bitcoin as decentralized currency they can trade without sanctions, click here to view on Twitter.

 

If this situation blows another gasket in the coming weeks.  The same thing will be happening in the US.  We 100% believe this.  We are sorry this had to get this bad.  We are not pro War.  We see very difficult times ahead for the US economy.  Prepare now!  A garden, rural land, Bitcoin, Gold, guns and ammo.  It is not a panic, it is a preparation.  Stay calm, and HODL Bitcoin.  Bretton Woods III may be a whole new world which is much brighter than what we have right now.  That is our hope.  It starts with Bitcoin.

 

Neutral ATM is here to get everyone off of zero Bitcoin.  

 

Give Neutral ATM a try.  We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.