Mainstream modern economics is largely a scam. It is a fraudulent Ponzi masquerading as a ‘free market’ whereby bumbling political actors implement fraudulent policies based on falsehoods.
You cannot create money out of thin air in perpetuity and expect a good outcome, yet this pretense is soundly ignored across the board.
True prosperity comes from individual productivity, not moving the goalposts every few years and doing more of the same.
We believed this once. We can believe it again.
Let’s dig in.
Divorced from reality: EU approves $2.2 trillion stimulus plan
Whether it’s politics, economics, or social and cultural issues of our time, it’s striking how the decisions being made are born out of incompetence and an acquired comfort to promote falsehoods.
This is what makes bitcoin so attractive, as it exists in a time of universal deceit and stands tall irrespective of the political whims of bumbling bureaucrats with no skin in the game.
On Thursday, EU leaders met in Brussels to resolve a standoff with two Eastern European states that threatened to delay a $2.2 trillion stimulus bill due to concerns over sovereignty-undermining clauses within the deal.
The agreement paves the way for the EU to put into effect not just its seven-year budget but a €750 billion ($909 billion) so-called pandemic relief package, which will be financed via joint-debt.
As with prior relief packages, this money will get lost at the upper echelons of the bureaucratic jungle that comprises the European aristocracy — leaving small businesses to deal with the consequences of economy-crushing lockdown measures and pandemic fear-mongering.
To be clear, the ECB is proposing to solve a problem it created by doing more of the same — printing money.
Currently, at 66%, the ECB’s balance sheet is on its way to making up 100% of Europe’s GDP, by which time the socialist utopia will have been achieved and we can all sip on lemonade with our comrades, reminiscing of the time we all worked for a living.
Today, I had the pleasure of watching an interview with journalist, writer, and political commentator Peter Hitchens, who touched on the UK’s mishandling of the covid situation.
He told the interviewer: “a lot of my experience in reporting over the years particularly of the British political system has led me to believe that incompetence and stupidity are neglected explanations for what’s going on.”
This is as true for the UK government as it is for the ECB and various institutions that bumble around attempting to convince you that their half-baked power-grab policies are for your benefit.
Never underestimate the marriage of incompetence and the lust for power.
To my mind, the events that are currently underway are all connected, but not enough to provide concrete directional cause from start to finish (& seldom is this the case). This is not to say that a concerted directional effort isn’t being made behind closed doors though.
The ‘great reset’, the cultural and widespread perceptual changes among a public that is largely unaware of socialist idyllic consequences, and the delusion that unlimited money printing is a substitute for productivity, are all intermingling at the turn of the decade.
All I can say to this mess is: thank God for bitcoin.
Bitcoin retests the highs in preparation for a move above $20,000
Since last week, bitcoin has once again put the sword to bitcoin bears as buyers stepped in at $17,600 — brimming with unbridled confidence.
At the time of publishing, bitcoin is consolidating under all-time highs and will probably break $20,000 by the end of December, as underlined in prior writings.
As expected, bitcoin’s price trended below the 4-hour 50-EMA and formed a double bottom structure just before re-testing the $19,500 level.
Now that the doomsday scenario didn’t play out, the potential for follow-through into uncharted territory is higher — though this might be short-lived if the market becomes too frothy.
At the time of writing, bitcoin is trading just below $19,200 after having gained 10% over the weekend from the swing low of $17,613.
Immediate levels to watch
- $18,500 support level (50% fib retracement)
- Daily close below $18,000 indicates a probable breakdown in market structure.
- Reclaiming $19,500 suggests an impulse move above $20,000.
On the flip side, if for whatever reason big players decide in unison that the time for a major correction is due, then it will most likely happen.
In my estimation, however, the market has just put that fear to rest with the above price-action — for now.
The big dip will come when everyone least expects it, which is why you cannot afford to become complacent.
Onward bitcoin Spartans!
Catch you next time.