The Moody’s downgrade of the US government to ‘negative’ is a big deal. The US debt is spiralling upwards, and US bond auctions are getting VERY weak. Like shockingly weak, as China and Japan slow their purchase of US treasuries. This is not business as usual, this is not just another blip on the radar of doom and gloom about the global financial dominance of the US and the USD. This is it, the actual beginning of the end.
Just seriously think about it. The wild political polarization happening in the US currently. It’s not like it used to be. It is a full on invasion of the mind, a calculated and targeted attack that has weaponized social media (and legacy media) to push people to the edge of their political leanings, to make them turn on one another, and finally, to make them destroy themselves from within. It is the only way to make the USA fall from its pedestal. The next US election is end game, the final chess move.
The US will be in financial chaos before the next election, which will absolutely guarantee a republican (and Russia / China) victory. As US bond auctions lose gigantic amounts of demand, they will have to crank up rates to attract buyers, and when even that fails, they will have to step back in and start buying up the bonds themselves (Quantitive Easing). This return to increasing money supply, combined with the lack of demand for US treasuries will absolutely crater the value of the USD. And as this all unfolds, their will be an unprecedented flight of capital from American markets into gold and Bitcoin. Other crypto will also see a boost, but ultimately it will be Bitcoin that benefits the most. The general population, confused by the chaos, will view bitcoin as a commodity and a safe store of value (that also goes up), you can argue they are wrong but it doesn’t change how they view it. And isn’t it funny, just as we step onto the ledge of this disaster, we also see Bitcoin etf’s finally get the approval they should of had years ago (yes yes, it hasn’t ‘officially’ happened yet, but it will). That is necessary to allow the flight of capital.
This will not happen overnight. The market likely won’t start actually crashing until March, with the US returning to QE in May or June. USD will start seriously dropping around September or October. A debt ceiling shutdown will greatly accelerate these timelines, but it just doesn’t seem likely as it’s not the optimal play if the goal is the long term destruction of US global financial dominance.
Keep in mind, the US is still going to exist, so don’t go all nutty thinking that Google is going to zero or something stupid like that. It is simply going to financially crater as a country, and the global economy will scramble for a while, until a new world currency is agreed upon for trade. This might not be Bitcoin, as many counties will vie for the power that comes with being the global defacto currency. But either way, Bitcoin to $100k is a damn guarantee. Beyond that, who knows. $300k is possible if a full flight of capital into Bitcoin occurs, but my money is on $100k by 2025.
Disagree? Say why below! The time to discuss this topic is now, before Bitcoin and gold inflate at a rapid pace.
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