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Monday, January 27th 2020 - Issue #660

The facade of control is gone

The pace at which the Fed is having to cycle through its "policy tools" is increasing at an alarming rate. The above tweet from our friend James O'Beirne is commenting on this article that was published last night by the Wall Street Journal.

In short, instead of doing the sane thing and letting markets appropriately price risk and capital misallocations, the Fed plans on defending Treasury yields at all costs in an attempt to prop up the markets. Further skewing prices throughout the market while they directly monetize US Debt. Something they said they would never do when they embarked on QE a decade ago.

This news comes only two weeks after
we were made aware that the Fed had opened its window to over levered hedge funds in desperate need of funding for their margin debt. At the time, your Uncle Marty didn't think the Fed could seem more desperate. But boy, was I proven wrong. They went from directly propping up hedge fund positions (which include positions in the stock market), to trying to engineer Treasury yields at breakneck speed. All is not well and the Fed seems to be losing control faster than they imagined was possible.

This is why we Bitcoin, freaks. Emergent, complex systems like economies cannot and should not be micromanaged. The micromanagement leads to hyper fragility. If the last four months have proven anything, it is that the Fed has micromanaged itself into a corner in which it has no idea what the repercussions of its past policies will have on markets today. Forcing it to act in exotic, drastic ways that it previously promised would not happen.

Contrast this with Bitcoin, a completely open-source, transparent and emergent system with a perfect monetary policy for the Digital Age. The ability for central planners to bastardize Bitcoin and skew true price discovery in the markets is non-existent. It's only a matter of time before the market comes to this realization. The Fed and its counterparts around the world are working as hard as they can to push people to the brink as they fuck up the money.


Bitcoin fixes this.
Final thought...

Maybe it's not the brightest idea to evacuate people from the epicenter of the coronavirus back to their home countries. Just a thought. A final thought.
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