10 days until the next Fed's rate hike, and it seems like they are not going to be able to stop the kraken from being unleashed. They have no choice though, they broke the chains two years ago and over the last months they just haven't been able to keep it under control.
The markets are hesitant, expecting, not completely bearish as we've seen the price of bitcoin holding over 16k despite the second biggest exchange falling and several other well respected - yet centralized - entities crumble.
But let's think about it for a second, if they stop inflation and prices go down you got a credit collapse and that US credit collapse will affect the whole world and that is definitely a worse scenario than just keep the constant but slow theft that inflation means for the average american.
The problem with a potential credit collapse is that every major institution is built on top of this credit mess. If credit as a concept collapses, you can pretty much say good bye to shelters, banks, food... the whole system would perish and with it, their imaginary money that keeps the bubble afloat on the lake, wandering aimlessly while the fish below wait and see. They began this lie and they have to continue supporting it no matter how much (rate hikes) it takes.
Another way they can continue the lie is by running fiscal policies, policies that will definitely not mean burdening central banking, but the consumer demand. People will need more money to pay for higher prices while central banks keep corrupted by the feds. There is no autonomy on neither of the several sides of the same coin.
I mean I am not twelve years old, of course the markets, inflation, prices etc are manipulated, it is a cog that needs to exist in order for society to not collapse. The problem is that the manipulation is slowly falling over and it is getting out of their hands.
This manipulation is now a global structure problem, if they the money printer to stop going brrr, there will be a credit collapse and everything will fall. But that's not the end of it, we look at all the 3rd world countries - such as mine, my dear and shitty Mexico - and we think about how shitty kind of life and they have and yet fail to realize that the fact that Argentina's fiat currency being a joke, Venezuela being a shithole, El Salvador relying on a fake internet point system, Brazil having their biggest political mess in decades... all these situations are connected to the same monetary policy that rules in the US.
People turn against each other when the topic is survival, not when money is broken because they don't even realize that the root to their problems is being handled by a group of people 3,000km norther of them.
It is all connected. These very same monetary policies are the cause of the Ukrainian conflict: the US trying to be europe's energy provider for higher prices, and since the conflict has extended far longer than it was expected the US could no longer pay its bills and the US economy is on the verge on collapsing without commerce and business relations with china - who is actually the biggest winner of it all by the way.
The Chinese strategy is long term, but in the short term, to keep interest rates low, China bougth US bonds, and in 2015 they halted these purchasesand realize we couldn't pay their debts, so they took the money and kept the peg, and they turned into real estate and minerals instead of putting into US dollars. So, the US had to monetize their own debt, so they took citizens' money and made the rich richer and the poor poorer.
I don't know if you are aware but the CCP is slowly outpricing everyone in the west coast for homes and buildings purchases.
We live in an interconnected world and malfunctions of the economic system is bringing chaos, chain supply chaos, and eventually local insurrections - look at Brazil if you don't believe me.
If you pay attention to history, and if you can see the bigger picture and what is about to happen (and will happen), you will realize this is only the beginning. This is not new, there is a rise and fall of economies, it's a no end cycle. The problem today is that is happening in a lot of places at the same time, it is a global issue now, not a local problem where it affects one region or one nation.
What about Crypto?
Technology has always been deflationary, and not everybody understands that about BTC.
We've always been told at university that a 2% inflation is required for a productive economy but that is a false construct. Of course, inflation is required for accelerated growth but, is it actually a must?
If you run a monetary policy that requires inflation, you have to collapse at some point, and that's where BTC is so different. With Bitcoin you can have unlimited monetary velocity without the inflation part.
That very little change in the basics we've been taught for so long about monetary policy allows technology to create new economic paths.
People who don't understand the new paradigms in economics shouldn't be making decisions that affect the whole world, and politicians are not well prepared to call the shots about this, printing money is always their answer. Whoever decides to embrace the monetary policy of Bitcoin will lose their place at the table, so nobody is actually taking that step, they all continue to try to undermine crypto and FUD the shit out of bitcoin.
If money can be corrupted over somebody's expenses on benefit of others, it will be a historic conflict, Humans will have conflict if money can't be controlled.
There are people creating leverage in products built on btc today, so make sure to hold BTC in your private wallet, because BTC will take over a lot of exchanges, if it stays decentralized. That's a big IF, I know.
El Salvador opened Pandora's box
And oh boy if the world's governments are not trying to take that experiment down. Look deeper into SBF fiasco and read about all the conspiracy theories around it. It looks like it was an orchestrated strike against crypto in general, commandeered by the very same governments El Salvador's experiment would topple if it came to be a success.
El Salvador's experiment could turn the tides: Imagine a young leader that understands technology and innovation and is excited about trying new paths to improve people's life and actually succeeding at it, while proving that the old world's monetary policies are outdated and no longer work in a modern world where everything affects everthing.
The global adoption is going to be challenging but being active in the community is important to bring investors and people related to crypto directly or indirectly.
The tide might turn soon
And inflation the way we see it might be rendered useless, and the slow money theft might end.
But that's a big IF.