Subnostr

This is probably the thing to watch. M1 monetary velocity.

So much of the money that exists has been tied up in longer-term instruments like mortgages and bonds, that even tiny increases in the amount of money moving are enough to send consumer prices (and Bitcoin, which is a liquidation sponge) skyrocketing.

There's no room to print, without causing CPI to jump.

🐢 1y ago

The real issue is that they refuse to tighten fiscal policy. And by tightening monetary policy, they loosen fiscal policy further.

Whether they intentionally print or not, the dollars will manifest themselves.

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Discussion

Laeserin 1y ago

Yeah, they're stuck.

🐢 1y ago

I mean, they could lower rates and embark on a grand fiscal austerity scheme, get rid of social welfare programs, stop bankrolling half the world’s nations, and reprioritize their budget. Basically get their house in order and and live within the means of the government revenues, but that would send the world into a greatest depression most likely, starving many, and mostly cause two generations of pain while the excess and waste is sorted through.

But, the politicians can’t sell that story, and people will vote for the opposite, so bitcoin will win.