Crypto is a function of money supply, and the force of money supply expansion is now in full reverse gear and is contracting. Bitcoin will return to 100 as the federal reserve continues to ratchet up interest rates in the hopes of driving oil prices back toward $40. Or dare I say $27? That would be nice. Please sell all crypto commodities and delete this man from your memory as well as your twitter feed. He has seen his day
Hey, Nick. This is actually the second time that I have seen this guy's name pop up on my timeline on another platform and then here. And I don't know a whole lot about it, but I feel like I should, because I do have a lot of friends that are still doing crypto to some degree, some of them more than others. Could you give me a little rundown?
Nick G
@NickGweezy · 4:45
But Jerome Swell may only be 6ft tall, and he's not as tall as Paul Volcker in the 80s, who had us up at 18% interest rate in the 80s, which is why everybody's savings accounts were amazing and why people couldn't really afford houses, because who can afford 18% a year? We're headed back that way. I mean, look, mortgage rates have doubled already because the Fed has raised rates. They are targeting 3.25%
J.L. Beasley
@Her_Sisu · 1:26
I have to admit I am at a knowledge deficit when it comes to this person you reference. I am at a knowledge deficit about Bitcoin. I did try at one point, early 2021, to learn more about it, as well as NFPs. I'm still at a loss for both, and I honestly have not put forth any effort to learn about either in any great capacity. So I don't have to delete this guy because I don't even know who he is
Nick G
@NickGweezy · 4:53
Probably nobody founded it in particular, because there's always teams that start these things, but here's how they work. They all write basically kind of a rhyme or a copy of the original bitcoin white paper saying, okay, this is a new currency. We're going to put money into this. They're all going to rely on all the computers instead of one computer. What this means is that there are these people out there that they mine these coins
Nick G
@NickGweezy · 4:58
And then when they fired me for no reason, I went on television, and I went in bloomberg, and I snitched them out for firing me because I didn't want to be fired. I wanted to be a good stock broker and give good investments to great people. But they don't want good. They just want money. And that's the same thing with bitcoin. They don't care if I'm right or wrong
Nick G
@NickGweezy · 3:12
This is inappropriate as a financial advisor and coming from somebody who held a series Six and was therefore a financial fiduciary, whether or not that is in the past, given that we have inflation, the Federal Reserve has already taken massive steps to kill inflation in the form of raising interest rates. Interest rates right now on the 30 year treasury is 3.47%. That is their target. However, they are raising interest rates into next year and they will be doubling the amount of money supply that they are reducing
Whichever three letter agency you want to say owns it or family, whatever, say it, I don't care. I won't. All I will say is that I have learned in the last five years, slowly at first and then a lot quicker, anything that I'm seeing supported as a narrative by the mainstream media that I agree with, I begin to seriously question
Nick G
@NickGweezy · 5:00
I said the same stock last year as I'm saying now, TBT throwback Thursday, the only stock that makes money when interest rates go up, you can look at TMV as well, which is not as leveraged. But pretty much what's happening is the Federal Reserve is reducing the cost to buy a bond, but they're not reducing the amount that the bonds pay out. So say you have a bond that costs $100, pays out $10, that's a 10% yield
Nick G
@NickGweezy · 1:21
And of course, I ran out of room, so I'm not sure where I ended. But basically what I was saying is I just want the best for everybody financially, you know, happy investing, conservative investing, making sure you don't look lose any more money as Bitcoin declines. Look, man, September 15 is when this interest rate is set to continue to go up
So I'm just very curious why you would say to keep the money in a savings account right now with the purchasing power decreasing so rapidly. Obviously you said TP is an option. I have to look more into that because it definitely is an obvious move that they're going to continue to raise the interest rates because that's the only way they can even give us the illusion that they're trying to compensate for this big debt that we've accumulated over the last two years, additional debt
Nick G
@NickGweezy · 4:39
That's what I just wanted to be with that brokerage. And as soon as I started doing the right thing, I was showing the door. But I digest, I mean, digress. So, in summary, they're cranking up rates, especially next week. September 15 is a big day if you Google Treasury auction schedule, you'll see this very strangely highlighted treasury auction schedule of bonds between I want to say the shortest is four weeks and the longest is a 30 year
I mean, even if you're getting 5%, you're still losing 4% due to inflation alone, and 5% high, so high. So? Yeah. I don't know. I just wanted to pose another question here and drop it and leave it. And I know you'll get to it when you get to it, but I appreciate your input, advice, and support
Nick G
@NickGweezy · 4:59
It's basically buying back something that they sold, something that they bought back. It's a whole convoluted process that I don't even want to give you an aneurysm to try to explain, but what the Fed is doing is giving you the money for this amount of bonds and then saying, well, they're cheaper. At the end of the day, you can buy them back and keep the money that you took from us
Nick G
@NickGweezy · 4:38
The only country I know of right now that has low interest rates that you could easily throw your money at is the Japanese yen. Haruhiko Kuroda is the bank of Japan president. He got a rare second election, or he was elected twice, which is very rare out there. He's their hero. He's kind of like bringing them out of the lost decade. That was the 90s
