Here’s an article about Moral Hazard, click here to read.
Here is the epitome of Moral Hazard:
Here’s some more of it:
Putin:" We are in favor of using the Chinese yuan for settlements between Russia and the countries of Asia,Africa, and Latin America.”
Xi:“Change that hasn’t happened in 100 years is coming and we are driving this change together.”
De-dollarization and internationalization of the Yuan. Putin heralds the death of the petrodollar and the birth of the petroyuan. Already 2/3rd of Russia-China trade happens with Yuan and Ruble. Russia will use Chinese Yuan to trade with Asia, Africa, and Latin America.
The issue is USD is losing it’s hedgemony rapidly. The bond market is draining liquidity from banks, because of the rapid rate hikes from the Fed. If bonds were mark to market right now, most banks would fail this week. The swap lines allow them to kick the can a little while longer. Now we find out, SVB was loaning out 5.5X more to executives, than they had before, right before the bank was closed, and taken over by the Fed!
So, bank executives are fleecing the Fed using cheap credit, based in printed currency, and backed by nothing. They knew these loans would default!
Bitcoin is backed by energy. It can be mined offgrid. There will never be more than 21 million coins produced. The protocol is owned by all the miners and node operators. There are millions of them, so the protocol cannot be changed. The die is cast. Bitcoin is the most scarce asset in the world and it’s currency is energy. Which is an extremely valuable commodity in and of itself. So, hold it long term. Ride out the volatility. Remember what the government says about their own printed currency:
”Fiat currencies value is largely a function of the currency being the only instrument with which individuals pay taxes. 2) the strength of the governments institutions, such as the legal system and military, and 3) a shared social trust in the value of the money itself.”
So you either trust the Fed and Government, or you don’t, and turn to trustless, decentralized, scarce Bitcoin. We are not financial advisors and this is not financial advise. Our Bitcoin ATM’s are always available 24/7 if you need it. Our newest location is installed tomorrow at 5410 West Bellfort in Houston. Soon we will be mining Bitcoin offline as well! To avoid any moral hazard with the Fed and monetary system!