The World Is About To Have A Global Currency Crisis Since No One Wants To Face The Music

As everyone has seen in the news recently with the UK and the British pound plummeting causing a near “Lehman Brothers Moment” where the BoE had to step in and inject billions into the bond market through QE to stabilize it and prevent a meltdown. The statement saying something along the lines of “We will pivot our current QT plan until the bond market is stable in our eyes.”

9.9% reported inflation in the UK with the plan to raise rates while also pumping more money into the market until its “stable.” This shows that most nations/central banks when challenged with the tough decision will be unable to face the music that the world economy is overvalued because they’d rather continuing push the nations towards hyperinflation instead of accepting their mistakes and go into a recession.

The recession would be very painful but isn’t hyperinflation which is far worse. All world currency’s are fleeing into USD as it’s the safest/slowest sinking ship against inflation which is further fueling the immediate pain for any nation that isn’t the US.

The FED is still giving the hawkish behavior as the labor market /unemployment numbers are telling the FED to continue to raise rates and bring more pain to stop inflation. During any period in history where inflation was high, the only way to officially stop it was to run interest rates up to be on par or over the actual inflation number to begin the cooling process. Most nations including the US have debts that become impossible to sustain should interest rates go too high.

This is where the “crypto” portion comes into the picture. Most/all crypto is currently viewed as risk-on assets which is accurate for most. As this situation continues I see the more realistic possibility that peoples trust in central banks deteriorate to the extent where they seek the alternative which crypto (mainly BTC) could offer to give investors more comfort/clarity on a consistent monetary policy versus the uncertain/emotional responses.

BTC could very well win big on the logical route most nations take which is higher inflation for longer periods of time.

Hyperinflation/Long lasting high inflation likely equals short term and long term gains for BTC as all asset prices inflate/the investor mindset for BTC shifts to a store of value/reliable monetary policy that people claim it is.