It's a year after five COVID-19 vaccines were produced and the Fed is still buying $120B of mortgage and government debt per month.
That is now clearly counter-productive to the old objective of preserving the purchasing power of paper money.
#Bitcoin
https://t.co/1Egu3txNIx
The Fed’s "dual mandate":
- Price stability
- Maximum sustainable employment
Unfortunately, policies have gotten it backward:
50-year low employment participation and 31-year high inflation.
Check out our November investor letter: https://t.co/1Egu3txNIx
Best way to visualize how extreme the Fed manipulation has been is to graph the deviation of real rates from the 50-yr avg. (2.63%).
The gray area is our brave new world of unlimited bond purchases – now an incredible 7.28 percentage points below avg.
The Fed’s decision to print half of our country’s GDP and use it to push up the price of bonds has forced the real rate to negative 4.65%.
Why would any economic actor want to buy something guaranteed to lose money?
Buy #Bitcoin
Read our Dec Letter: https://t.co/Di2t2cOIxF…
On average, #bitcoin has more than tripled annually for eleven years.
There have been a couple bubbles, a couple bear markets, but when you look at it over a long period of time, it has remarkably stable growth.