Bitcoin Still Heading to $20,000 According to Gareth Soloway, president and CFO of InTheMoneyStocks.com – Is he right? – April 3, 2022
I write a lot about fiat money on this blog, and one of the topics I write about most is the U.S dollar, which is a DEBT-based currency, that’s typically borrowed into existence via the Private banking sector. One of the events that have happened recently is consumer price inflation. Now, if money were backed Gold economic and financial deflation would be the same thing, but because we’re on a fiat monetary standard that allows fiat money to essentially be “Confidence” financial standard, everything revolves around confidence in the U.S dollar
Many in the markets are confident that interest rates are rising only to come back down again, and it’s for this reason why you’re seeing a lot of tech stocks holding steady while Gold as an example have seen losses. Bitcoin qualifies as a tech stock and confidence in bitcoin revolves around central banks essentially bailing out Main and Wall Street. The housing market is the benefactor of near-zero percent interest rates and it represents a lot of BORROWING power for the average individual and business.
The higher rates get, the less valuable in fiat dollars your house becomes, furthermore adding to the housing disaster are the Progressive government disasters. A lot of progressive governments(which include Conservative governments by the way) have gone on huge spending sprees, now although we call these spending sprees, they should be called investment sprees.
The problem with a lot of governments in the modern era is that they’ve made a NEGATIVE return on investment, and this is one of the driving forces of Bitcoin. If the market accepts that governments will have to borrow money to keep the economy afloat INTO PERPETUITY and there is NO CHANCE that any government can pay back its debts, well then it’s safe to say that the government isn’t borrowing money to make back a return and instead the government is PRINTING MONEY!
If the government is so horribly run that all it can do is print money to keep the economy afloat, well, then it is wise to buy and hold Bitcoin until the very end. But the variable in all of this is CONSUMER PRICE inflation, consumer price inflation disrupts the idea that central banks are in control of the economy. Because consumer price inflation revolves around THE COST OF DOING BUSINESS.
Under a Gold Standard, once a governemnt is to involved in the economy, an economic downturn is felt almost IMMEDIATELY. As an example, if money is backed by Gold a Minimum wage law has an IMMEDIATE impact on the economy, why? Because there’s a cost to dig Gold out of the ground and a GOVERNEMNT minimum wage law discounts that cost.
Prior to Franklin D. Roosevelt(FDR) creating the minimum wage FEDERAL law, the 31st President of the United States Herbert Hoover spoke to the top industrialists of the time and asked them nicely not to lower wages, when the economy was on a downturn, well these meetings triggered the great depression, you have to remember back in those times, organized labor participated in terrorism, and by Herbert Hoover appearing to side with the terrorists, the top industrialists including their banks, were spooked.
FDR was elected president on what looked like a socialist platform, sure FDR didn’t call it socialism, but if you look at what “The Deal” did, it enacted price controls, as well as SOCIAL securities, and let’s be very clear about it, during that period those “Social” changes on the economy were welcomed by the American people, FDR won many of is elections in LANDSLIDE, he almost packed the courts.
Why I bring this up is because I’m not sure how the U.S government is going to respond to consumer price inflation. In certain provinces in Canada and certain U.S States, Premiers and Governors are ALREADY engaging in vote-buying schemes, meaning that instead of “investing” to make their economies more productive, they’re instead sending voters free checks in the mail.
Free checks in the mail led to Bitcoin making record new highs, and if you look at when Gavin Newsom promised Californians checks in the mail from the money he stole from them with California’s crazy gas regulations, this could be a strategy employed by Joe Biden in the mid-term elections. The entire tech sector without the government is inherently DEFLATIONARY, however, what most people fail to comprehend is if the tech sector crashes a lot of people will be scared to go back into the stock market.
If the tech sector crashes, I also argue the housing sector crashes, because both sectors are being propped up via malinvestment from both the Federal governments and the central banks. So when it comes to the price of Bitcoin on my end, I’m looking at consumer price inflation, if it continues to run rampant, central banks can’t lower interest rates without making the consumer price inflation problem worse.
I think what could happen is that as consumer price inflation runs rampant and people start to notice that raising rates isn’t stopping consumer price inflation, there will be calls to lower interest rates, this move to me will be the move that triggers interest rates going above 10%, because those in the know, comprehend that the problem is really MALINVESTMENT in the global economy.
The wrong people, the wrong industries have access to capital, but this won’t be discovered until things get really bad and people comprehend that the only way out of this is AUSTERITY measures. But again this realization could take a DECADE or more. It’s for this reason that I would say I only buy investments you’re confident in. I’m personally not confident in Bitcoin, consumer price inflation results in crazy people like me appearing to be right.
No human wants to hear the words “Austerity Measures” it means the party is over, time for society to be productive again. People like hearing Donald Trump or Joe Biden tell them don’t you worry I’ll fix everything, everything will be perfect if you trust me, your loyal politician to handle all your economic affairs. So if I’m, to be honest, I’m not sure, I’d say now is the time to make investment decisions that resonate with you. I’m personally a Dividend investor and Bitcoin doesn’t pay a dividend.
As Bitcoin’s weekend rally erased its losses for the year, right now, “is a bad point to get into Bitcoin,” says Gareth Soloway, president and CFO of InTheMoneyStocks.com In order to have a legitimate break to the upside, “bitcoin needs to hold at the $50,000 level,” the expert technical analyst tells our Daniela Cambone. Soloway cautions investors seeking to invest into the cryptocurrency by asserting that, “you don’t want to buy into resistance.” Cryptos have had a massive run, he tells our Cambone when discussing rising altcoins, however, “it would be nice to see consolidation at this point.” “Gold faces downside in the near-term,” and the economy slowing aggressively in the second half of 2022 will only help the precious metal, he predicts. The Reddit meme traders are, “trying to recreate the magic,” he says, as GameStop and AMC have been identified with bullish trends. Soloway concludes that the coming digital yuan will be the reserve currency of the world, “as the dollar is here to stay in the short-term, but will have issues long-term competing.”
Interesting times ahead!