The week the Fed caved

This is the week the Fed caved and threw in the towel in the fight against inflation.

Let's go Argentina !

Humans love to hear the outcome they'd like to see happen and everyone is celebrating the "soft landing narrative".

However, nothing is fixed, the US debt is still here and growing, and history shows it's never good to celebrate too early.

Just like in the 1970s ... when everyone thought they had tamed inflation.

I'm not a big fan of these comparison charts, but I still think this is where we are in the inflation cycle that will come back to haunt us before next Halloween, unless the Fed manages to keep the smokescreen intact until the next elections.

Other references about this in my post this week:

Jay Powell this week:

The markets

Me

A final word about ?itcoin.

Although I trade cryptocurrencies in my investment management business, I mostly address ?itcoin here as an option against fiat currency debasement which is only worse with higher inflation.

Others will say gold. It has been a valid option for thousands of years.

If you look at the changes in the world for only the last 200 years, you have to admit history and technology progress is accelerating (most processes follow a power law, forget about linear thinking btw).

So where do you think we're going?

And contrary to gold, if you can memorize a 12 words passphrase, your wealth will follow you everywhere in the world, still keeping hands in your pockets.

That's it for this first newsletter.

I hope you enjoyed your coffee and croissant like I did writing this one.

Until next week !

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Read that last sentence twice. And rethink your positions accordingly ??