As we are slowly approaching the end game of the grandest monetary experiment of the 21st century I sometimes ponder what the Fed could do to turn things around. Throw in the towel and continue with another round of QE? Yes that may work, for a while at least if done on a massive scale. Remember that central banks worldwide are increasingly pushing on a string as every round of monetary easing requires exponentially larger amounts to have an impact.
After treating water for weeks on end bitcoin is finally on the move again – except now it’s suddenly heading HIGHER. You’d think everyone would be popping the champagne but just as I predicted the legion of shell shocked crypto HODLers just flipped from FUD back to FOMO.
Given all the FUD, noise, rumors, and ‘angst’ in circulation it once befalls onto yours truly to dispense with all formalities and give it to you straight and to the point: Strap yourself in and watch out below because the Fed is coming in for a hard landing. Meaning we’re not just heading into an extended economic recession but most likely a full blown (and utterly self-inflicted) deflationary depression.
On December 22nd, 1944, while holed up in the Ardennes Forest American General McAuliffe was sent an ultimatum from his German counterpart outside of the town, demanding “the honorable surrender” of the town within two hours. General McAuliffe’s reply was brief and succinct: “To the German Commander: N U T S !” And the rest of the story of course is now history.