What if, thanks to the Federal Reserve, credit events have essentially been replaced by debasement events?
Can major, traditional credit events even occur in the age of central bank manipulation?
(H/t to Jordi Visser and Raoul Pal)
Discussion
Is it really “credit” if the money was never real in the first place?
All dollars are actually debt 💸
nostr:note159k469j0vg2ws3hg0dmdzdkg7f757sktrynsd3nmrm9f9ek2wnhs0jauds
You mean bears might not have another opportunity to gobble up assets in a deflationary bust? Blasphemy!
Do you mean the fed will always print to provide liquidity in any sign of credit events?
Essentially, yes.
Agreed. It appears like since 2008 we've entered the new era of finance where nothing fails and number always go up.
There is no problem that can't be solved through debasement and no amount that can't be printed. A societal net decrease in wealth has been chosen as favorable to an ethical, rational system of free markets.
Agree with the thesis. And will be interesting to watch it play out.
This is a good question, which I have also been thinking about for some time now!
Hope he replies. Unfortunately I think he is to busy pumping "Smoking Chicken Fish" $SCF and other nonsense on his platform.
Yep. Inflationary crashes are the new thing.