As much as I'm bullish on Bitcoin and cryptocurrency in general in the longer term, this feels like too much, too quickly. I don't really expect this bull run to last that much longer.
Really? Why not? The current package and the last one amount to about 10% of the total economy. That seems survivable, especially when the alternative is a lot of people not surviving.
Student loans are responsible for destroying academic integrity. Schools raise tuition because the government is paying for it. Students will be left with the debt after graduation but by that point they are no longer the school's problem. They also do everything possible to prevent students from dropping out, including interfering with the work of teachers. School administrators are getting rich off of the trilions of dollars being injected into the economy. Meanwhile privileges such as tenure are being abolished because they don't serve the administrator's interests.
But this 1.7 trillion is surely the death knell.
No system will remain honest after you inject a trillion dollars into it. I'm sure all of those injections caused less-than-obvious consequences immediately afterwards.
The “system” will suddenly become so massively dishonest that it will spell death for America?
Yes, after all these years landlords finally have their chance to raise the rent
Today, bonds yield very little, and as we've seen in recent weeks, they can decline in value rapidly with small increases in the interest rate. You can lose a lot of money buying bonds.
Stocks are at all-time highs even though the economy isn't doing so well and many are unemployed. Are stocks a safe store of value right now?
Companies are shifting to hybrid work-from-home models that require less office space. And not just tech companies, yesterday Target said they're not renewing the lease on an entire building in Minneapolis because of more flexible hybrid work. Is real estate a safe store of value?
As trillions of borrowed and printed dollars and euros were pumped into economies the last year, gold was the worst performing asset of them all. So is gold a safe store of value?
And inflation isn't the only enemy of wealth. Political disintegration destroys wealth much faster, just look what happened to the ruble after the collapse of the Soviet Union. The probability of that happening in a major western nation is low, but not zero, and higher now than 10 years ago.
So if you're a high net worth individual looking at the twin threats of inflation and political disintegration, exactly how do you protect your wealth?
It's easy to see how Bitcoin might be getting a 5% allocation from a lot of family offices right now.