Inflation has been a trending topic as of recently and for good cause. Recent AP report shows that the United States has been borrowing a lot of money to pay for the pandemic.
This has made our national debt balloon to 28 Trillion, and we've been paying for Covid Relief by auctioning Treasury bonds
But if we don't raise the debt ceiling, we can't increase our debt to spend our way out of this. If we default on our debt, the country will get downgraded, and lenders will be less likely to want to work with the U.S.
Janet Yellen and her team have been reported by AP to be using accounting tricks by pushing money around to cover our ass until we vote to raise that ceiling. Overall, Janet Yellen has said that something drastic must happen to find a solution.
Right now financial speculators think we will run out of banks who want to buy our bonds, and as a result we'll print a bunch of money to fill in the gaps, leading to hyper inflation.
What the U.S. has done in the past to protect its self is to change the rules of money it's self.
This happened in the 1900's when gold was the currency and banks promised too many notes, resulting in the Federal Reserve Act.
Then the federal reserve printed too many notes, so the government passed an act to siezed all gold since it was competing with the U.S. dollar in value.
We ended up printing too much money again and inflation began to increase.
Which leaves us to now, where rapid inflation is about to begin again. In fact we can already subtly see this in stores.
Zerohedge reported on retailers using "shrinkflation" tactics by slowly reducing the amount of product or weight you get of said product for your usual price, but the packaging and price remain the same.
But if that wasn't a indicator of the suck that's about to hit the country as a whole, there is another HUGE indicator, that were about to hit rapid inflation. That being the government has quietly stopped reporting the M1 Money Supply, so we don't know exactly how many dollars we have in circulation.
This has made some savvy investors to think Bitcoin is a smart place to put your money to retain value,(while although volitile) it has a greater return for long term investors so far.
This is where it gets really fucky…
Ray Dalio, one of the worlds top financial minds has gone on record saying the U.S. is planning to ban Bitcoin in the future.
Why is that? Well,as you remember earlier in the article, when we walked through how when the U.S. government spends itself into a corner, it just changes the rules, starting all the back in the 1900's? It seems that drastic solution Janet Yellen's team might be talking about, is the U.S. moving to an all digital currency to save the economy.
So just like before when the government printed too much money to cover their ass. They just make the people live in dramatic poverty for a while (depression) and then change the rules how money works.
So with Bitcoin competing with the U.S.'s new proposed digital currency, Bitcoin is speculated by high minds in the financial world to be banned, or heavily regulated to the point where it will be more of a problem, than a solution.
Ride Bitcoin while you can, it may not be a bubble, but a ban that ends this money train.
