https://void.cat/d/DaWLEd5vLcCTuPDwnz4emT.webp
Gustav: Why I have always said things are uncertain in the short term:
On the one hand, Binance CEO Changpen Zhao has pled guilty to money laundering, and a $4.3 Billion dollar fine has been levied against his firm. The SEC has announced it is charging the large exchange Kraken with operating as an unregistered securities exchange, broker, dealer, and clearing agency. Methodically, touchpoints like centralized exchanges are finding themselves in danger. The State cannot allow too much competition in several domains; the currency system is one. (Violence is notably another.)
On the other hand, Argentina, suffering under high inflation for some time, has elected a firebrand politician who professes a desire to tear down his country's Central Bank. Politicians are increasingly finding popular support by raising similar issues in their own countries. Global trading partners to the United States are becoming less willing to purchase US debt and are looking for opportunities to conduct trade exchange bilaterally, or via a neutral currency like Bitcoin. Cracks in the Petrodollar have all the potential for igniting contagion in money markets, globally. States also have an interest in being able to store value in the long term.
How the winds blow as these events unfold is anyone's guess. But the global debt situation is clear to all who are willing to face the discomfort of objectively looking at national balance sheets. There is a natural game unfolding where timing is the key factor. Defect too early and you will be punished. But defect at the right moment, and you will gain a significant strategic advantage.
As the Americans say, "You ain't seen nothing, yet."
#bitcoin #debt #argentina #kraken #binance #sec #petrodollar #javiermilei
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