6th May 2024 > > Money printing is good for cryptos.

tl;dr

QE is back.

Market Snap

Market Wrap

Grayscale saw its first inflows since the launch of the nine newborns on Friday, accompanied by eight of those nine, which is an interesting development.

Curious Cryptos’ Commentary – Money printer goes brrr …

I know many who think I have become slightly loopy when I have been claiming that QE is heading back our way. My mistake was a simple one. I just didn’t realise it would be so soon.

Disguised QE, but QE nonetheless:

This is damning proof that the duplicitous edifice built around the “independence” and “competence” of central banks is frankly bollocks.

It is not possible for a central banker to claim that monetary conditions are being constrained with interest rates to combat inflation, whilst simultaneously firing up the money printer, because that would be an obvious lie. No professional would go down that path. Well, actually, there is one scenario in which lying is acceptable, and that is in the political world. Central bankers are politicians and respond to their political masters.

Fiat is going to be devalued in a forlorn attempt to mitigate the disaster of excessive government debt, caused by excessive government spending, for no-one can claim that tax rates are too low. The only rational response is to buy hard assets, though don’t do that in the UK, for you will soon pay an annual wealth tax on those assets.

There are only four ways for UK investors to get out of this conundrum, none of which will leave you personally better off. Spend the cash (that might be fun), give it away (please not to the government or any charity that is blatantly political), move overseas, or buy cryptos and donate them to family members.

My preference is for the last of those four options.