FED Balance Sheet approaches $4T as Everything Bubble continues inflating
Will Bitcoin be part of the Everything Bubble?
In the last month, the FED has added roughly $210 billion to their balance sheet.
A number that is larger than the entire market cap of bitcoin by the way, which stands just under $150 billion currently.
They are quick not to call this latest round of balance sheet expansion quantitative easing, but I am not sure what you call it exactly as it looks an awful lot like the same thing.
The result is a FED balance sheet that is now approaching $4T:
(Source: https://steemit.com/bitcoin/@jrcornel/btc-bounces-as-fed-expands-balance-sheet)
The perfect storm for asset prices?
Many investors and analysts around the world are suspecting that as moves like this one continue to happen, asset prices will continue to move higher.
Since assets across the board are likely to rise, the current and expected bubble is being referred to as the "Everything Bubble".
To make matters worse, many countries around the world are doing this exact same thing.
It has become the norm for central bank monetary policy.
Which means this bubble could be worse than anything the world has ever seen before as economies and assets are becoming more and more intertwined and connected.
Will bitcoin go along for the ride?
My guess is yes.
As it stands now, bitcoin's use cases are relatively small, similar to that of gold.
The majority of the money in bitcoin is in it due to its store of value properties or its speculative properties, which ironically don't usually go hand in hand.
If assets across the board inflate, I would expect the price of bitcoin to do the same.
Due to the price moves we saw in 2017, everyone is keeping a close eye on bitcoin to see if it can catch some momentum again, at which point they will be quick to jump in as they know how explosive the gains can be.
Bitcoin is considered to be very far right on the risky asset spectrum by most managers.
However, what happens when the bubble pops?
Will that tank the price of bitcoin?
Perhaps, or perhaps not.
I think that depends on how bad the prick is that pops the bubble, and I think it matters how far down the road it happens.
If the prick is due to central banks losing control and many countries experiencing run away inflation, I don't think bitcoin goes down much in that scenario.
I think it would be seen as the Schmuck Insurance many out there claim that it is.
However, if we have more of a run of the mill garden variety pullback/recession, then I think you could see bitcoin prices pulling back in that environment right along with most other asset classes.
There are several moving parts to all of this so it is difficult to say with absolute certainty how assets will respond, but the most likely outcome with continued money printing is increasing asset prices.
And I am thinking that will likely include bitcoin.
Stay informed my friends.
-Doc
very likely.
In 2015-2016 industry went into a mini-recession, followed by the ECB pumping over a Trillion Euro into the wild. Then, in 2017 crypto had so much life breathed into it that everyone was dreaming of lambos. 2019 is now matching the 2015-2016 decline with a very similar trajectory, and now its the Federal Reserves turn to shovel fuel into the furnace.
I believe this time though we'll see the inflation move to safety at a much faster pace, because 2016 was not a reset by any stretch, and everyone has one eye on the exits this time.
Perhaps. Though I think they have a lot more fire power to throw at this still before recession actually hits. Interest rates have a lot of room before zero (or negative) and "non-QE" could still turn into official QE.
I'm not going to be surprised if Bitcoin gobbles up the entire legacy economy over the next decade. It's entire purpose is to act as neutral economic ground to soften the blow of catastrophes like this. Bitcoin was literally built for this upcoming crash, and was born in response to the last one.
Bitcoin is immune to long-term manipulation. Bitcoin is not a store of value, it is a generator of value. The establishment can only manipulate it in the short-term because it's gaining value so quickly.
The precious metals market is much easier to control because gold and silver don't actually gain any value over time. They just store the value. Pump/dumps, futures markets, and all the other tricks they use don't work nearly as well on an asset that is doubling in value every year.
Bitcoin is going to be the only viable ship these rats can swim to.
You said it yourself liquidity is the killer app in this situation.
Yep, very good points. Especially when you use my own against me. :)
On steem, have crypto?
Self proclaimed community watchdogs are actually hacking and stalking people.
This group https://steemit.com/@steemspeak is ran by https://steemit.com/@fyrstikken, They are hacking people that enter this discord server https://discordapp.com/invite/sqxV63P . Once you are hacked they profile you long enough to know all of your activities. They introduce workplace gangstalking visits and bring it to your attention cleverly and discretely so only you get it. They are very covert and tricky with everything they say and do in this server. Some claim to have worked for or are working with the FBI and the NSA. Mixed with decommissioned traders and coding criminals, Its a scary mix of creepy people and their intent is to drive you crazy and deplete everything you have ever acquired in life, even your freedom.
My hacking started with them introducing ransomware that has options, dump my coin or delete my system drive. They acknowledged this to me in the server as it happened.
This hacking and stalking is done so they can manipulate the target to pump and dump for them. Threatening and Making victims wear head phones, so nobody in your household can hear thier dramatization towards you. In 2017 this server was side marked as a drama show for entertainment purposes only as an excuse to say whatever they want all the way down to killing a politician. They have a server side command called "hey asshole" making a prompt come up instructing everyone to wear headphones. They want everyone wearing headphones so nobody in your vicinity can hear them mess with you. Fystikken says its because of "mic feedback" but once your a target you get exactly why they make everyone wear headphones.
With headphones on they subliminally direct victims with very low suggestive whispers mixed into their radio shows music. Combine this with them being able to manipulate their own individual outputs sound volume, which they control on the server side, they can pick what individual people hear at any given time. They decide who you hear on the server and change the volume controls for them. They can make some really low or off for those trying to investigate. They control who hears what and know who is who.
This team will find absolutely everything they can about you prior to using their suggestive and threatening program. They Introduce pictures that mean something only to the target, inducing paranoia while they watch and listen thru all of your circumvented devices. They are very aware of what makes you tick. They know your work schedule and use it for work stalking along side of this. I received multiple threatening letters to my work and home addressed to my screen name from this group.
Fyrstikken tells people they are drafted like they did with Facebook at the beginning. He says Facebook was started by forced labor and V2K controlled slaves, just like he creates with his gang for steem and crypto. "Get to work bitch" he tells people once circumvented and intimidated.
If your an agent Investigating them, guess what? You are circumvented. They are high tech, over funded and well connected.
You have great relevant content but can you explain me why after voting nonstop for @Slowwalker and his alts you can't get enough vote back on your post to make it up the trending?
You know it'd be efficient to start by flagging people who actually post content they care about to try breaking the oldstone - wisdomandjusting - slowwalker vote trading? I hope you find better use of your SP before I get real fed up.
What do you mean by this?
I mean the circle you vote for don't seems to care about the content they post, they care much about the reward so it'd be more efficient for me to flag you because you care about both.
Well, curangel had asked me to stop voting for them and so I did, and yet they kept downvoting me anyways even after I stopped... so if you would like to upvote some of my posts (as you said you deem them to be worthwhile content), I'd be glad to stop voting for them. :)
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.
@tipu curate 2
Upvoted 👌 (Mana: 10/20)