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In this episode of the “Fed Watch” podcast, due to popular need, I invite Tom Luongo back on the program! Luongo is among my preferred authors due to his amusing prose and deeply rejuvenating insight on international macro, geopolitics, and currency markets. He is likewise a long-lasting Bitcoiner, discussing it for several years in his composing and podcasts.
” Fed Watch” is the macro podcast for Bitcoiners. In this episode, we begin by getting a broad view from Luongo on the international circumstance, then dive into some specifics about Europe, the U.S., the Federal Reserve, Ukraine, and far more. We finish up the program by speaking about what Luongo sees for the U.S. in the brief to midterm, so, the next 3 to 24 months. Listed below, I’ll supply a little bit more information on what was stated, however, this is a must-listen episode!
The Sick Man At The Table
The very first concern I ask Luongo is, is he as bearish as everybody else? It appears all over we look, individuals are shrieking about bearish market and collapse, from macro to geopolitics to bitcoin. I believe this collapse story is exaggerated, particularly for the United States. I ask Luongo to offer us his broad image of the state of the marketplaces.
He begins in by determining the ill male at the table, that being Europe. Europe is struck the hardest by the forces that have been let loose today: increasing product rates, increasing inflation, loss of self-confidence in organizations, and so on. As Europe has a hard time and starts to cannibalize itself, all the capital in financial investment portfolios in Europe will ultimately need to stream someplace, and it’ll stream to the United States.
The dispute that has begun in Ukraine is on Europe’s doorstep and, particularly, on the doorstep of the very best economy in Europe over the last years: Poland Luongo asks rhetorically, “Is Warsaw [Poland] or New York closer to Ukraine?” As financiers recognize that this brand-new dispute is not disappearing– and after that battle it with financial weapons as they have been– they need to damage their economies. Cash will quickly get away from Europe to the U.S. I think that it will likewise stream into bitcoin.
The Federal Reserve Is Serious
I ask Luongo if he believes the Fed will go through with uber-hawkish rate walkings. His response eloquently sets out that Jerome Powell’s strategy to raise rates back in 2017 was disrupted by COVID-19, and now Powell is going sweltered earth to raise rates to break the back of every other reserve bank and competing currency.
The factor the Fed will do this, according to Luongo, is that the Fed, owned by Wall Street banks and U.S. monied interests, is attempting to rinse the years of malinvestment that’s developed considering the Great Financial Crisis. He likewise frames it as a fracture in the relationship between U.S. monied interests and the globalists in Europe. We can’t comprehend the Fed without comprehending the Davos crowd’s intent to rule the world or burn it down.
According to Luongo, the Federal Reserve will raise rates continuously till 2024, to break the back of Davos and the extreme globalist/communist goals. I tend to concur with him. Possibly I would not put it as colorfully as Luongo does, however, the globalists are “worldwide communists” and will burn the international economy down before they confess defeat.
Bitcoin And U.S. Fates Are Intertwined
At the tail end of the episode, I ask Luongo what he considers my theory: What benefits the U.S. economy benefits bitcoin, at this minute in time. A bulk of the bitcoin supply is most likely held by U.S. entities, the U.S. has the biggest share of mining, the biggest share of bitcoin interested individuals, the most equity capital cash, and a few of the laxest policies. If bitcoin is to prosper in a significant economy, it will prosper in the U.S.
Luongo tends to concur with me on this however breaks it down in more information, stating there is a sector of Wall Street that likes bitcoin, and those are the very same individuals combating Davos. They are preparing a SWIFT replacement and getting along to proof-of-work cryptocurrency because they have cash in it now, with mining removed in the U.S.
I can’t cover all his remarks in information because what is excellent about Luongo is he takes threads from several subjects and weaves them together into a rejuvenating viewpoint.
After the above exchange, we enter into Bitcoin’s future in concerns to Europe. While we both are fairly bullish on the U.S. economy over the next 10 years– which will benefit bitcoin– we are likewise both extremely bearish on Europe– which, too, will benefit bitcoin– as it offers European capital a factor to run away into bitcoin.
Again, this is a must-listen episode, with lethal severe subjects blended with Luongo’s amusing storytelling capability.
That does it for today. Thanks to the readers and listeners. If you enjoy this material please subscribe, examine it on iTunes and share!