Only Bitcoin can stop the money printers from turning back on as a result of the energy crisis.
Adopting a currency that is incredibly difficult for the unproductive class to tamper with is the only way out of this dilemma. Bitcoin is that currency.
Despite being a much anticipated disaster, the markets appear to be caught off guard by the speed at which the European energy crisis is developing. Everyone anticipates a difficult Winter with exorbitant pricing, however it appears that most people believed these issues wouldn’t become apparent until the Winter. This style of thinking is proving to be a grave mistake as prices rise to levels that make it impossible for markets to simply… operate due to the compounding effects of a constantly declining supply and markets trying to anticipate turmoil.
This morning, it was revealed that European trading desks will get at least $1.5 TRILLION in margin calls as prices in the continent’s energy sector rise above the level of available liquidity. I realise we live in a time where trillions are being thrown around like confetti at the Super Bowl, but to put that in perspective, that would be around 13% of the overall market capitalization of gold and 31.6 times the market capitalization of bitcoin right now. All this is done to make sure there is enough liquidity in the energy trading markets right now. The amount of liquidity that will be required as the year goes on is not even remotely factored in by this. The European Central Bank will soon be forced into action because of the liquidity issue, and they will start printing money to bail out the energy sector. This might be a turning point on the global path toward Weimar 2.0. And this only applies to Europe. You’ll see that the UK is beginning out on a very similar journey if you pan a little west toward that country. However, they are starting from the fiscal side of the equation.
With price limits on electricity, Liz Truss, the newly appointed Prime Minister of the UK chosen by the WEF, is making a strong first impression. Prepared to disburse up to 170 billion pounds, or more than 5% of England’s GDP, in an effort to ease the pain that British citizens experience when it comes time to pay their electricity bills at the end of the month. To the layperson, this could appear to be excellent. The newly appointed Prime Minister is here to protect the common British citizen’s wallet and humiliate the “greedy” energy and electricity monopolies. However, if you have even a passing understanding of economics and history, you’ll realize that this kind of attempted price fixing would only make matters worse. Fuels cannot be efficiently supplied to the market, which makes it more difficult to provide power at reasonable prices. As a result, prices are rising.
While it may appear to be the politically wisest course of action to attempt to fix prices by subsidizing consumer costs, as is the case in the UK, or to inevitably print money to bailout energy producers, as may ultimately be the case in the EU, these actions will only worsen these producers’ ability to deliver their goods to market. Price restrictions will eventually collapse like a dam, and money printing will lead to further money printing. Both measures will unavoidably result in increased pain and price inflation. Even worse, the course of action may cause their economies to deteriorate to the point where producers are unable to afford the fuel that utility companies need to generate and distribute energy. The liquidity issue among European energy companies appears to be an indication that this process is just getting started.
This is what occurs when markets haven’t been able to fairly price products and services for fifty years and when the world economy is based on a monetary system that is entirely detached from reality. To make matters worse, we’ve discovered that easy money can be weaponized in two ways: first, by devaluing an individual’s savings, and second, by determining who is allowed to use that devalued money and who is not. even cutting off entire nations. When entire nations, especially those that are reasonably powerful, are cut off from the financial system, they will retaliate by turning their riches into weapons. We can see this happening right now because Russia has decided not to sell any more oil or natural gas to the West in exchange for access to its financial and payment networks.
Freaks, things are becoming heavier and heavier every day. The only way out of the corner that the West has put itself in appears to be a hyperinflationary collapse that makes people realise that the ruling class is an unproductive one and is bringing us to catastrophe. Nothing makes this more obvious than the fact that we Americans feel compelled to adopt the European strategy of pushing forward with utterly foolish energy and monetary policies.
You should also get your head out of your ass if you believe that the US is mostly immune to the problem that is developing in Europe. Due to the nature of our hyperconnected, high-velocity trash economy and the amount of credit risk that exists globally, our fate is essentially tied to that of the European economy. The bankruptcy of energy and electricity producers as a result of astronomical costs Adopting a currency that is incredibly difficult for the unproductive class to tamper with is the only way out of this dilemma. Bitcoin is that currency. True pricing will return to the markets once bitcoin becomes the global reserve currency, enabling capital to be allocated appropriately because the costs of improperly allocating that limited capital would be very significant. The results of trying to virtue signal your way through capital allocation will be unsustainable. Unfortunately, unless the locals realise this economic reality, things will continue to get worse for the citizens of Europe, the UK, and eventually the US. started a domino effect that, contrary to what most people think, will soon reach our shores.