2 Days, 20 hours from EIP1559
Ethereum has been straight running lately, and we have wonderful fundamentals underway with the heavily anticipated upgrade coming very soon.
It is worth advising that there is clearly risk of a "sell the rumor, buy the news" event taking place that upon realizing the upgrade we will see those that had accumulated risk off into further strength.
While this is a risk, I think it is a low one.
It is worth sharing Strategists Russell Napier recently made the potent remark:
"This is exactly what happened after World War II. Central banks were impotent during that time. The supply of money was dictated by governments controlling the commercial banking system. I strongly believe that we’re going back to that system. The government can never tell you that, because the whole point of financial repression is to steal money from savers slowly. But this is a fantastic thing for politicians: It isn’t fiscal spending, it isn’t higher taxation, it’s a contingent liability on the government's balance sheet but not an actual liability. It creates politically directed growth, and it creates inflation. For politicians, it’s the magic money tree." (Citation Below)
Bond yields are 100% being depressed from central bank intervention which is manipulating yields. Yields are no longer running due to free market forces. This is a hidden penalty on savers, on those living off of fixed income. ETH is a wonderful product as it will enable products to still garner actual market dictated interest rates. This is one of the shocking reasons you are finding such asinine interest rates by providing for example USDC & DAI for example to lenders online offering 7-9% rates. The USD still has high demand, especially from emerging markets and in countries with even worse currency gripes such as Turkey.
This is a concept that is hard for many to wrap their heads around:
Citation: https://themarket.ch/interview/russell-napier-we-are-entering-a-time-of-financial-repression-ld.4628
It is worth advising that there is clearly risk of a "sell the rumor, buy the news" event taking place that upon realizing the upgrade we will see those that had accumulated risk off into further strength.
While this is a risk, I think it is a low one.
It is worth sharing Strategists Russell Napier recently made the potent remark:
"This is exactly what happened after World War II. Central banks were impotent during that time. The supply of money was dictated by governments controlling the commercial banking system. I strongly believe that we’re going back to that system. The government can never tell you that, because the whole point of financial repression is to steal money from savers slowly. But this is a fantastic thing for politicians: It isn’t fiscal spending, it isn’t higher taxation, it’s a contingent liability on the government's balance sheet but not an actual liability. It creates politically directed growth, and it creates inflation. For politicians, it’s the magic money tree." (Citation Below)
Bond yields are 100% being depressed from central bank intervention which is manipulating yields. Yields are no longer running due to free market forces. This is a hidden penalty on savers, on those living off of fixed income. ETH is a wonderful product as it will enable products to still garner actual market dictated interest rates. This is one of the shocking reasons you are finding such asinine interest rates by providing for example USDC & DAI for example to lenders online offering 7-9% rates. The USD still has high demand, especially from emerging markets and in countries with even worse currency gripes such as Turkey.
This is a concept that is hard for many to wrap their heads around:
- Inflation is taking place
- The 'Stagflation' cult will eventually be proven right, but their timing is totally (2yrs) premature
- Despite inflation there is still STRONG DEMAND for the Greenback
- Yields are being manipulated by central banks, which means to gather yield it is worth going to products which still feature actual free market yields - like ETH or even more broadly speaking DeFi
Citation: https://themarket.ch/interview/russell-napier-we-are-entering-a-time-of-financial-repression-ld.4628
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