Call me a bit naive, but I cannot for the life of me understand why money is not moving into bitcoin in a gigantic swirl....yet.
It is obvious that inflation is high, eating everyone's purchasing power.
Stonks are still at the top of the range vs P/E and interest rates.
Real estate went up crazily during Covid and is posed to plunge. All factors point to it.
Gold is not "working" really since 2011.
So...how the populace think that they could keep their funds at least at par vs inflation?
Isn't the low interest the cause of all this? It's been too low for too long, there's too much fiat money now,
and the interest has to be raised a lot more before markets can make sense again.
True, but...
1. At even 4-5% interest rate, the U.S. cannot afford even afford to pay the
interest on the national debt. They have to borrow every year just to pay the interest. Especially in an environment where tax receipts are falling.
2. Corporations will not be able to borrow at that rate and will go bankrupt. Thus mass layoffs will happen, which will cause even more of the govt tax base to fall due to mass unemployment.
Low interest rates were low for so long for a reason, an inconvenient truth that no one wants to acknowledge.
At some point the Fed will have no choice but to pivot to rate cuts again in order to avoid a global financial meltdown.
