Bitcoin Spike to Flip Zone. Big Government is Coming.
We had a big move on Bitcoin yesterday as we did bounce off a support/ zone at the 7500 zone.
What I am looking for is a close above the next resistance/flip zone at 9436 zone. It used to provide support, but once broken, we have yet to retest that zone. We have done so now and it will be interesting to see the Daily Candle body close...if it closes above or below the flip zone will be telling.
Alternative non fiat assets will be doing well going forward as central banks are stuck in a 0 interest rate and infinite stimulus period. They are out of tools and are doing everything to maintain confidence in the system right now. They will inflate currencies and we are now in a race to the bottom to 0 and negative interest rates. I am big on precious metals, but I can see money running into cryptos as well...although the more established ones.
Human history is cycles of hard and soft money. No fiat system has ever survived. It seems we are approaching the end of this cycle. There is a confidence crisis approaching. Where people will lose confidence in government, banks and the fiat money.
The repo event we are seeing is telling. The Fed is losing control of the system and now up to 120 Billion a day is injected into the system just to keep interest rates low and money flowing.
If you follow my work, I have said why a digital currency is coming. Governments will get big and will use digital currency to track and tax money. Taxing things such as restaurant tips, your private jobs and selling things on ebay or craigslist etc. It is especially for small business.
If we go down the MMT/Universal Income path, we need more taxes. The socialist economists know that giving people more money while competing for the same number of goods and services will cause inflation and this extra money to account for nothing. They way you prevent this is by using taxes to remove excess money. Government essentially takes the role of the central banks. Green/Climate tax is great for this, because governments know that the people are less likely to protest because they do not want to be labelled a global warming denier.
This system is coming. Digital money for enslavement is coming. It will be to primarily force people to save using fiat money and force them to keep the money in banks that have negative interest rates thereby paying the banks to do so. There will likely be a credit freeze where the system is shut down. People start to get violent towards the banks and corporations, and government says don't worry we will save you. Since people will be desperate to access their money, government will introduce a nation wide system including a digital currency and people will accept it.
Look around the world and you can see all the social/political and economic crisis' getting worse. What the central banks are doing currently will not make things better. They will make things worse and they will destroy the currency and middle class to do so. As mentioned, Government will get bigger and more authoritarian to keep the system together. In some countries, Government will be the one to create the demand for the currency (like Canada where I live). The US has reserve status which means there is artificial demand for the Dollar. Europe and Japan export a lot so the Euro and Yen are in demand by countries when they import from Japan and Europe meaning both nations can warrant their monetary policy...even though it does not work. Remember, all authoritarianism always comes in the form of liberalism. It has always been the young who have put these people into power because they lack ignorance on money and how the world really works.
So many people are wondering what has caused this spike. I have said China is what you need to watch. Since the Chinese cannot really day trade and need government permission to open a trading account, many opened crypto accounts since the crypto market is decentralized. This is what caused the big Bitcoin move back in the day.
China is set to phase out cash and release their digital Yuan. The goal was to have it released by Singles Day, November 11th, China's largest retail holiday. We can be seeing Chinese money realize the game and using Bitcoin to get out of the fiat that will be forced upon them.
Interesting times for the world ahead, and it all has to do with economics and the failure of monetary policy.
What I am looking for is a close above the next resistance/flip zone at 9436 zone. It used to provide support, but once broken, we have yet to retest that zone. We have done so now and it will be interesting to see the Daily Candle body close...if it closes above or below the flip zone will be telling.
Alternative non fiat assets will be doing well going forward as central banks are stuck in a 0 interest rate and infinite stimulus period. They are out of tools and are doing everything to maintain confidence in the system right now. They will inflate currencies and we are now in a race to the bottom to 0 and negative interest rates. I am big on precious metals, but I can see money running into cryptos as well...although the more established ones.
Human history is cycles of hard and soft money. No fiat system has ever survived. It seems we are approaching the end of this cycle. There is a confidence crisis approaching. Where people will lose confidence in government, banks and the fiat money.
The repo event we are seeing is telling. The Fed is losing control of the system and now up to 120 Billion a day is injected into the system just to keep interest rates low and money flowing.
If you follow my work, I have said why a digital currency is coming. Governments will get big and will use digital currency to track and tax money. Taxing things such as restaurant tips, your private jobs and selling things on ebay or craigslist etc. It is especially for small business.
If we go down the MMT/Universal Income path, we need more taxes. The socialist economists know that giving people more money while competing for the same number of goods and services will cause inflation and this extra money to account for nothing. They way you prevent this is by using taxes to remove excess money. Government essentially takes the role of the central banks. Green/Climate tax is great for this, because governments know that the people are less likely to protest because they do not want to be labelled a global warming denier.
This system is coming. Digital money for enslavement is coming. It will be to primarily force people to save using fiat money and force them to keep the money in banks that have negative interest rates thereby paying the banks to do so. There will likely be a credit freeze where the system is shut down. People start to get violent towards the banks and corporations, and government says don't worry we will save you. Since people will be desperate to access their money, government will introduce a nation wide system including a digital currency and people will accept it.
Look around the world and you can see all the social/political and economic crisis' getting worse. What the central banks are doing currently will not make things better. They will make things worse and they will destroy the currency and middle class to do so. As mentioned, Government will get bigger and more authoritarian to keep the system together. In some countries, Government will be the one to create the demand for the currency (like Canada where I live). The US has reserve status which means there is artificial demand for the Dollar. Europe and Japan export a lot so the Euro and Yen are in demand by countries when they import from Japan and Europe meaning both nations can warrant their monetary policy...even though it does not work. Remember, all authoritarianism always comes in the form of liberalism. It has always been the young who have put these people into power because they lack ignorance on money and how the world really works.
So many people are wondering what has caused this spike. I have said China is what you need to watch. Since the Chinese cannot really day trade and need government permission to open a trading account, many opened crypto accounts since the crypto market is decentralized. This is what caused the big Bitcoin move back in the day.
China is set to phase out cash and release their digital Yuan. The goal was to have it released by Singles Day, November 11th, China's largest retail holiday. We can be seeing Chinese money realize the game and using Bitcoin to get out of the fiat that will be forced upon them.
Interesting times for the world ahead, and it all has to do with economics and the failure of monetary policy.
