Hey, I'm here again! Yes, the crazy dude who writes stuff on the internet!
If I am writing about this topic today, it is because the cryptocurrency market, as much as it pains me, is not as decentralized as I would like it to be and is closely linked to the movement of the stock market.
Politics rules your life and even if you resist to believe it, it is a fact. Whether you can take control and act in your best interest depends only on how much information you are able to find and how you interpret it.
I am not the Oracle of Omaha nor do I claim to be, but his partner Charlie Munger recently commented that we were seeing a manipulated market. My dislike of these two "cheaters" aside, I have to admit that they may be right.
The current economic situation is the result of the political management that was done during 2020 with the COVID 19 crisis. At that time, a pandemic situation (I will not go into conspiracies and I will take for granted that there was a real risk) caused an economic recession due to the interruption of production, the shortage of a microchip used by many manufacturers in various sectors (automotive, electronics, etc.) and the risk of health collapse.
The politic decision was taken to print more money to put it into circulation so that the recession would not be felt. In Spain, for example, the government decided to help companies and workers with money. I myself found myself in the situation of receiving from my company and from the government in the same month money that had not really generated any means of production, it was simply printed and put into circulation. People spent that money, bought extra things and everything was fine, the crisis was almost a media thing, people were fine if they didn't get sick.
It turns out that all that money that was in circulation and was inflating the numbers of companies and people, now will no longer be printed and logically the people who were buying things before, now do not have the same purchasing power. Retail companies publish their numbers and do not meet their sales forecasts. If people do not have so much money and prices are at their highest inflation peak, nothing else is expected, sales go down.
Why do I think Charlie Munger may be right?
Because the measures that are taken when inflation spikes are interest rate hikes and they are being taken now when it has been known for two years that measures need to be taken. If you also know that the economic recession is a fact because the pandemic is slowing you down globally, delaying in time the taking of measures and printing the largest amount of money in history to cover the hole is a questionable management (being politically correct).
Yes, of course I think they knew it was going to happen this way and it is the same old game, if we can't keep growing because everything is more inflated than a sponge cake.... We prick the balloon and inflate another one.
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Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"
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