CRYPTO The Financialization of t
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Posted On: 11/24/2024 1:44:36 AM
CRYPTO
The Financialization of the US "economy" started in 1999 with the repeal of Glass Steagal. It hasn't stopped since,as Fed Gov't deficit has gone from $4 Trillion in 2000 to $ 35 Trillion in 2024. How does US Bonds stay at < 5% in the meantime ?
Especially as China, Russia, Japan etc...dump US Bonds.. ?
The Federal Reserve Bank initially printed $ 14 Trillion out of thin air 2010 to 2020 to artificially Buy Bonds and keep Bond yields at 3% !
It became too Obvious that the newly formed Bank Holding companies (formed after repeal of Glass Steagal in 1999 and collapsed the Bank Holding companies using 100:1 leverage to Buy assets in 2009) were being bailed out then rewarded generously to transact with the Fed. The Fed bought all of the underwater Bonds and mortgages from the Bank Holding companies at an unknown price...bailing out the Banks.
So...to prevail the Fed engaged with private companies to use the shady , unaudited Crypto markets to pump up the Bitcoin et al.....like Buyers were avoiding the Fed's printing, but actually it was a set up to have the BitCoin buyers to actually BUY US Treasuries (unknown to the Gen X Buyers)...and not have a direct link to the Fed in Buying the US Bonds ....very shady and desperate business.
Notice that the current Head of SEC, Gary Gensler, has been pressuring Crypto companies to be more transparent and be subject to the regulations that Listed and indeed unlisted Finance companies are currently.
Guess what...Gary Gensler has been kicked out...he is gone on Jan 1st.
Now....unlike in 2020,when Elon Musk, Howard Lutnick, Jamie Dimon, and other Bank Holding company CEO's at BoA, Citigroup, Goldman, etc....ALL voted for Biden.Indeed they had voted for Hillary in 2016 !!
6 Months ago...all of a sudden...they ALL...supported Trump for 2024...guess why? They are all major holders of BitCoin,and Banks and Brokers will become market makers in BitCoin / crypto....that is the key.....Trump has learned of the financialization of BitCoin / Crypto in order to manage the massive $ 35 Trillion debt.
Its all a now complex, Ponzi scheme.But Trump, being a master of debt management,listened and knows ...it will get hime4lected and maybe the only way to manage the debt....while marketing the DOGE Dept (Musk and Ramasamy) to supposedly CUT the annual Fed Gov't deficit. Its merely a marketing ploy...to say that they can cut $ 2 Trillion from the annual deficit.
Wall Street is embracing Tether and Bitcoin and tokenizing them to our US Fed Gov't debt.
The more Tethers are being bought, the higher Bitcoin goes. The higher Bitcoin goes the more Tethers are being bought.
As Tether grows, it uses the funds to purchase US Treasury debt. Tether is now holding over $84 Billion in US T-Bills up from $28 Billion in 2022, Tether is becoming a substantial buyer and funder for US Government debt.
Oddly as the Bitcoin community is heralding the digital asset space as the price is surging, what they may not realize is that Bitcoin is being used to attract funds to Tether which is funding the US Treasury and backed by US Treasury debt.
The idea that the new Presidential administration is supporting Crypto is in essence to find another buyer for US Treasury debt. By attracting investors, Wall Street makes money and fees by creating a new digital industry which adds depth and liquidity for this digital asset class. BUT....does not cut the $35 Trillion (presently) debt AT ALL !! Just finances it and keeps the US Bonds from going north of 5%
At the end of the day, this industry is being born to help support US government deficit spending and Treasury issuance. Is there any wonder why a large entity has had a free pass by not providing Audited Financials over the years?
If Tether is a growing buyer of US government debt and one of the largest funding vehicles for Bitcoin, then any material price decline/volatility in US Treasuries may have a direct impact on Bitcoin's price.
Is Bitcoin really an alternative asset or dependent on the US Legacy system? Do not take my word for it, the video below adds much more clarity.
Tell Tale of Tether
The Financialization of the US "economy" started in 1999 with the repeal of Glass Steagal. It hasn't stopped since,as Fed Gov't deficit has gone from $4 Trillion in 2000 to $ 35 Trillion in 2024. How does US Bonds stay at < 5% in the meantime ?
Especially as China, Russia, Japan etc...dump US Bonds.. ?
The Federal Reserve Bank initially printed $ 14 Trillion out of thin air 2010 to 2020 to artificially Buy Bonds and keep Bond yields at 3% !
It became too Obvious that the newly formed Bank Holding companies (formed after repeal of Glass Steagal in 1999 and collapsed the Bank Holding companies using 100:1 leverage to Buy assets in 2009) were being bailed out then rewarded generously to transact with the Fed. The Fed bought all of the underwater Bonds and mortgages from the Bank Holding companies at an unknown price...bailing out the Banks.
So...to prevail the Fed engaged with private companies to use the shady , unaudited Crypto markets to pump up the Bitcoin et al.....like Buyers were avoiding the Fed's printing, but actually it was a set up to have the BitCoin buyers to actually BUY US Treasuries (unknown to the Gen X Buyers)...and not have a direct link to the Fed in Buying the US Bonds ....very shady and desperate business.
Notice that the current Head of SEC, Gary Gensler, has been pressuring Crypto companies to be more transparent and be subject to the regulations that Listed and indeed unlisted Finance companies are currently.
Guess what...Gary Gensler has been kicked out...he is gone on Jan 1st.
Now....unlike in 2020,when Elon Musk, Howard Lutnick, Jamie Dimon, and other Bank Holding company CEO's at BoA, Citigroup, Goldman, etc....ALL voted for Biden.Indeed they had voted for Hillary in 2016 !!
6 Months ago...all of a sudden...they ALL...supported Trump for 2024...guess why? They are all major holders of BitCoin,and Banks and Brokers will become market makers in BitCoin / crypto....that is the key.....Trump has learned of the financialization of BitCoin / Crypto in order to manage the massive $ 35 Trillion debt.
Its all a now complex, Ponzi scheme.But Trump, being a master of debt management,listened and knows ...it will get hime4lected and maybe the only way to manage the debt....while marketing the DOGE Dept (Musk and Ramasamy) to supposedly CUT the annual Fed Gov't deficit. Its merely a marketing ploy...to say that they can cut $ 2 Trillion from the annual deficit.
Wall Street is embracing Tether and Bitcoin and tokenizing them to our US Fed Gov't debt.
The more Tethers are being bought, the higher Bitcoin goes. The higher Bitcoin goes the more Tethers are being bought.
As Tether grows, it uses the funds to purchase US Treasury debt. Tether is now holding over $84 Billion in US T-Bills up from $28 Billion in 2022, Tether is becoming a substantial buyer and funder for US Government debt.
Oddly as the Bitcoin community is heralding the digital asset space as the price is surging, what they may not realize is that Bitcoin is being used to attract funds to Tether which is funding the US Treasury and backed by US Treasury debt.
The idea that the new Presidential administration is supporting Crypto is in essence to find another buyer for US Treasury debt. By attracting investors, Wall Street makes money and fees by creating a new digital industry which adds depth and liquidity for this digital asset class. BUT....does not cut the $35 Trillion (presently) debt AT ALL !! Just finances it and keeps the US Bonds from going north of 5%
At the end of the day, this industry is being born to help support US government deficit spending and Treasury issuance. Is there any wonder why a large entity has had a free pass by not providing Audited Financials over the years?
If Tether is a growing buyer of US government debt and one of the largest funding vehicles for Bitcoin, then any material price decline/volatility in US Treasuries may have a direct impact on Bitcoin's price.
Is Bitcoin really an alternative asset or dependent on the US Legacy system? Do not take my word for it, the video below adds much more clarity.
Tell Tale of Tether
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