The bigger picture & commodity prices.
Now that the bear is awake, I am already looking ahead to when Central Bankers of the world will be forced to inflate currencies to keep their respective countries from defaulting and descending into chaos.
Naturally a fake bull market will kick back into gear, and -counterintuitively to the expansion of the money supply- that usually brings about a depreciation of commodities prices' because people would rather invest and borrow dollars to leverage on financial assets more than real assets.
This time, though, is quite different. The instability and unfairness of the system have translated to international tensions that cannot be resolved by simply printing more money. Cheap accounting tricks cannot repair a broken supply chain, wheat & corn scarcity, oil & gas scarcity provoked by active (and very political) sabotage from countries that are tired of being subject to the U.S. immense privilege and are seeking ways to reset the entire system.
As scarcity snaps peoples' minds into reality, the price of commodities will skyrocket even when the bull market kicks back in and possibly governments will shred that little resemblance of capitalism that the current economy has to impose price caps.
That's when things will reach the lowest lows and -in the worst case scenario- disorders will break out across many western countries.
After that, a new system will rise from the ashes of the current one and it will hopefully be a Bitcoin Standard.
Naturally a fake bull market will kick back into gear, and -counterintuitively to the expansion of the money supply- that usually brings about a depreciation of commodities prices' because people would rather invest and borrow dollars to leverage on financial assets more than real assets.
This time, though, is quite different. The instability and unfairness of the system have translated to international tensions that cannot be resolved by simply printing more money. Cheap accounting tricks cannot repair a broken supply chain, wheat & corn scarcity, oil & gas scarcity provoked by active (and very political) sabotage from countries that are tired of being subject to the U.S. immense privilege and are seeking ways to reset the entire system.
As scarcity snaps peoples' minds into reality, the price of commodities will skyrocket even when the bull market kicks back in and possibly governments will shred that little resemblance of capitalism that the current economy has to impose price caps.
That's when things will reach the lowest lows and -in the worst case scenario- disorders will break out across many western countries.
After that, a new system will rise from the ashes of the current one and it will hopefully be a Bitcoin Standard.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.