Bitcoin above $51,000 is sustainable if The Federal Reserve Guarantees Near Zero Percent Interest Rates Is Enforced into Infinitum – February 19, 2021,
The current market price of Bitcoin as of February 19, 2021, is perfectly justifiable, a reminder about Bitcoin is that it’s not illiquid, Although some very large and even respectable institutions have embraced Bitcoin, it’s not as easy as you think to relieve yourself of your bitcoins at the posted market price. Emily Graffeo writes an article that I disagree with based on the information I’m posting today.
After stating the obvious, it’s important to remember that the only reason Bitcoin exists in the manner in which it does is because of the Occupy Wall Street (OWS) movement. When Barack Obama became the 44th U.S. President in 2009, nobody during the period thought that this zero percent interest rate scam would work long term.
Bitcoin only started to take off when it became apparent to everyone that America’s Federal government and the Federal Reserve had no plans to normalize interest rates ever and we were definitely heading towards a digital fiat world.
Although the rise of Bitcoin started under Barack Obama it was solidified by former U.S President Donald Trump and current Fed Chair Jerome Powell, who pushed interest rate prices down while the economy was apparently BOOMING!
I wrote about this years ago that the dumbest thing Donald Trump did as President was put Jerome Powell in the spotlight when Powell was initially raising interest rates. Donald Trump publically and repeatedly verbally attacked Jerome Powell for raising interest rates, some people thought this is not a big deal, but it was, especially for those of us trading on the Forex Markets, because it symbolized Donald Trump becoming a FINANCIAL DICTATOR!
Now, if Donald Trump the supposed Republican was a financial dictator, one can only imagine what would happen if he would be replaced by a Democrat? As a Forex trader, I saw the writing on the wall, but never in a million years did I imagine Bitcoin reaching $51,000 this fast.
What accelerated the price of Bitcoin in my opinion was not the halving, it was the Coronavirus and the anticipated government response to it. With Trillions of dollars lying dormant in commercial banks, the only inflation that will come to America or anywhere in the world will most likely come via Government spending.
No, commercial Bank in their right mind wants to be blamed for the coming financial collapse, which is 100% the fault of Progressive Politicians. Therefore it’s a guarantee that all fiat dollars are going to depreciate in value in any sector of the MAINSTREET economy in which the heavy hand of government is present.
The only way for governments to solve this problem will be what I like to call “The Food Stamp” CENTRALIZED digital dollar. History is repeating itself, but we’re in a digital era and believers in the crypto space believe that they’re ahead of the central bankers, and quite frankly I agree with them.
The only reason this fiat system hasn’t collapsed is that the BASE-currency is still low. There are U.S dollars all over the world, but they’re being hoarded. Progressive governments in case you’re wondering are doing everything in their power to sucker people and institutions into spending or lending their base currency at ridiculously low-interest rates in a heavily regulated environment in which the government is working to control the freedom of speech, freedom of private employers to fire people as well as the freedom of assembly.
Furthermore, trade deficits are soaring in the developed world and if people believe that we’re headed to a digital world, why wouldn’t they jump on the Bitcoin bandwagon? Will the Biden administration pursue Austerity measures?😂
highly unlikely!
Will Biden be forced into Austerity measures? Maybe, maybe not, this market has been very resilient and if the market is resilient why shouldn’t Bitcoin soar above $51,000? The end game for the central banks has to be their own digital dollar, which we all know WON’T WORK!
But a digital dollar will buy the central bankers and the Progressive governments time to hopefully be saved by some entity that innovates the next great innovation(like the wheel) for the government to tax! How I see things is that there are too many regulations on the productive members of society, and this Bitcoin problem is a double-edged sword because if the government regulates it they’re screwed, and if they don’t they screwed.
Bitcoin is literally printing fiat money as most of the institutional money going into it was printed and borrowed cheaply and therefore the buyers which now include government-financed Elon Musk don’t see much risk in it.
If central banks can’t raise interest rates, they’ll have to use force to stop Bitcoin. Sure governments can do this and sure it might work, but Bitcoin appeals to the young, and if Progressives take that away from them, I’m not sure the type of beast that might emerge from that.
Governments like to goose economies and give welfare primarily for the morale of society. Deflation is depressing to a lot of people, higher prices, higher costs for whatever reason according to thought leaders make people happy🤷I guess? I know a lot of financially uneducated people who feel very smart because their homes continue to appreciate in value.
Home appreciation similar to the rise of Bitcoin and expensive often useless student loaned financed degrees are entirely the work of Progressive governments. Imagine if the government got out of the way and let the free market function? What’s that you say? You can’t imagine the government getting out of the way either! Well, then good chap until this market collapses = Bitcoin to the moon!
Interesting times ahead!