Dear Friends, be ready for mindless printing coming from the USA.
1. For the last five years, the majority of Treasury issuance has been of low duration, 1 yr, 2 yr and 5 yr.
2. It means that this treasury gets mature in 1 or 2 or maximum 5 years.
3. Maturity means that you have raise money again from the market.
4. The long-end of treasury market 10yr bond and 30 yr bond are having higher rates.
5. If long-duration bond auction fails, it is a bad sign of credit rating of the USA.
6. To avoid public embarrassment, the alternative is short duration issuance.
7. But the trade-off is that its maturity period is very short.
8. It means that you have raise money again to pay back the old debt.
9. It is like using one credit card to pay back the other credit card.
10. In the last five years, this ping-pong game has reached a dead-end but debt has only increased during this period.
11. There are only two ways to managed this.
12. Reckless printing of money or repricing of gold to a minimum range of $15000-$20000 per ounce.
13. In both cases, it means asset inflation.
14. In both cases, bond prices will crash.
15. America is bleeding itself to death.
16. Now, what happens to other countries?
17. Either they have to de-dollarize their economy which is extremely difficult.
18. Or they have to move to gold standard or gold warrant-backed trading regime.
19. In both cases, America will not let them choose either of these two options.
20. It means either death of weaker currencies or full capitulation in front of dollar imperialism.
21. In short, we are moving towards death of money as we know it today.
22. We, as humanity, will have to rediscover money with better definitions of money.
23. Better definitions of money means better institutions of money which means blockchain powered monetary regimes.
24. Those who will use blockchain to maintain public trust and fair purchasing power will eventually be the winners.
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