May 10, 2023
Balaji Srinivasan continues to warn of an impending banking and economic crisis.
“I burned a million to tell you they’re printing trillions.”
Balaji Srinivasan made this statement when asked about the status of his Bitcoin bet – that BTC would reach a price of $1 million by June 17th due to hyperinflation.
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I was in attendance at Consensus 2023 where he took the stage virtually.
He admitted that there was only a 10% chance that he would win his bet but wanted to make it in order to educate the public that there was something wrong with the economy.
The State isn’t going to tell you about it and conditions could unwind very quickly.
For instance, it only took two days from Silicon Valley Bank collapsing to the Fed printing $300 billion. It only took three weeks for $500 billion to exit local banks seeking safety. It took two months from patient zero hitting the shores of the U.S. for Covid-19 to be declared a national emergency. It took two quarters from the time then Fed Chairman Bernanke said we could face a mild recession to the global financial crisis of 2008. And perhaps most frightening is the statistic that it took the U.S.S.R just two years to go from a global superpower to total collapse.
Being too slow means being too late. And right now there are many things breaking all at once.
The debt ceiling is looming with a high probability of default. In fact, secretary of the treasury Janet Yellen admitted that the government is only funded through May.
The banking crisis is just getting started as most banks are fundamentally insolvent. In fact, since first making his bet more banks have folded including First Republic.
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Bonds are getting hammered in the wake of the Fed’s aggressive rate hiking program. This is what’s behind many bank failures. It also hurts individuals and companies (insurance) who invested in them as a safe haven.
None of this is to mention the looming pension, auto, student loan and commercial real estate crises just waiting to unfold. All this, while credit card balances are at an all-time high.
And the growing trend of de-dollarization is going to further weaken the U.S. financial system as time goes on. This long-term trend was kicked into high-gear when all of Russia’s USD reserves were frozen at the onset of the Ukraine conflict.
All of this is why gold is flirting with new all-time highs and Bitcoin is surging even in the midst of a crypto bear market. And it’s why you should own both. And if you’ve been reading this newsletter you would have been acquiring BTC under $20,000 for months.
One last note... on April 13th, Fed Chairman Jerome Powell stated that we would likely see a “mild recession” this year.
Editor, Daily Profit Cycle