The 30 year treasury bond rates are climbing fast and that is NOT good. Last week we showed how if the 30 yr bond climbs it could eventually tank the stock market and the real estate market. The reason is money would get too expensive and investment would curtail. Therefore, the Fed has to print and grow the money supply in order to keep the stock market and real estate market afloat. This brings about inflation, which kills purchasing power. But only for those further away from the printing press. Therefore, inflation is the lesser of two evils for the Fed. So, they print and hide the inflation in the CPI index. A few months ago, we blogged that the CPI has a ratio back to the years 1982-1984. Back then inflation was showing 6% to 10%. So if the CPI has a ratio to those years, it starts counting inflation when it gets to around 7% to 9%. It is showng 1.4% inflation now. Again, this is not bad for the Fed. Devaluing currency helps the debtor. It IS bad for you, the investor, the employee, the small business owner. Therefore, watching 10 and 30 year bond rates gives you a headstart on what is coming, click here to view on twitter.
The 30 year bond is at 2.456%, the 10 year bond is at 1.77% as of today! So what is coming? Inflation and money printing. The Fed saw this last month, so they discontinued the M1 and M2 money supply charts on fred.stlouisfed.org. We have mentioned several times that the chapwood index has been shut down recently as well. That tracked real inflation without ratios back to 1982 – 1984.
This has been going on a long, long time. Inflation started getting a lot worse after President Nixon took the US off of the Gold standard in 1971. Below is a cost of living poster from 1971. Below that, is a McDonald’s menu from 1971. Inflation is easily 7 to 8 times higher and in NY, CA it may be 9 times higher than CPI inflation shows. So when Jerome Powell states the Fed needs to run inflation hot, to 2% to 2.5% CPI. That really means 15% up to 22% (real inflation) in NY, CA. Middle class Americans are losing financially because they don’t have the purchasing power they did back in 1971. Raises average 2% to 3.5%. Real inflation averages 9% to 12% since 1971. Taking money supply, ratioing that to the Gold supply and dividing it by an ounce of Gold shows in 2021, Gold should be worth $31,000 per ounce. Today, Gold is $1,686 per ounce. Gold and Silver are manipulated, by the Fed, using paper derivatives. Understanding inflation and how it affects you is extremely important. Understanding how markets and indexes are manipulated is also important. We will keep harping on these subjects for that reason. Below are the charts on cost of living, McDonalds menu from 1971:
February 8th of 2021, the New Zealand pension system started investing in Bitcoin. Below is a chart showing their pension fund performance since 10/31/2010.
Notice an uptick starting in February? Other pensions will begin to follow suite. Here is the Canadian Bitcoin ETF performance since February 25th of 2021 when it started. Notice the performance?
At Neutral ATM we believe the 8 US Bitcoin ETF’s will be approved by the SEC. The pension systems of many states will begin to buy Bitcoin once these ETF’s are approved and the Bitcoin price will start seeing parabolic increases! This should be in the April thorugh August 2021 time frame give or take. We also see the Bitcoin price getting into the $850K to $1 million range during the 2024 to 2025 bull run, which is the NEXT cycle. We are only selling enough Bitcoin to get debt free at this cycles top, and perhaps buying land as a scarce asset to protect wealth and hedge against inflation. But all our long term eggs are still in the Bitcoin basket! We have to survive until the next bull run in 2024 to 2025. Remember, we now offer an OTC Desk at 4% rates for a minimum investment in addition to our ATM’s.
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Neutral ATM is here to get everyone off of zero Bitcoin.
Give Neutral ATM a try. We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.