Balaji Srinivasan has issued a stark warning about the Federal Reserve’s recent rate hikes and massive money printing policies. In a series of tweets, he argues that the Fed’s actions are not aimed at fighting inflation, but rather at propping up a fragile banking system that is on the brink of collapse. He also warns that Bitcoin may be the only safe haven for investors looking to protect their wealth from the coming storm.
Balaji compares the Fed’s rate hike to San Francisco’s claims of low crime rates, even as criminals continue to rob stores in broad daylight. The COVID-19 pandemic has also been a classic example of how the American state fakes rates. The FDA prevented labs from testing, leading to an underestimation of the infection rate till old people in New York started dropping dead. Similarly, the Fed claimed that inflation would not be a problem, but people buying groceries quickly realized it was an emergency.
Printing Trillions While Hiking Rates
According to Balaji S., the Fed’s rate hikes are merely a smokescreen to fool the public into thinking that everything is under control. In reality, the Fed has been printing trillions of dollars to bail out banks and cover up losses caused by its own policies. The recent failures of several small banks have exposed the fragility of the system, and the Fed’s response has been to print even more money. Balaji claims. Banks that lose money because of the rate hikes are now being covered with printed money, leading to further insolvency.
The BTFP, swap lines, and FedDIC measures are so enormous that the Fed is doing them over weekends with all the other central banks, publishing joint statements, and assuring people that the “system is resilient.” However, Moody’s has downgraded the US banking system as a whole, indicating that the system is in trouble.
The Fed‘s “infinite money” policy means that banks can now rely on an endless supply of printed dollars to cover their losses, instead of going bankrupt or experiencing a bank run. Balaji S. warns that this is a dangerous precedent that could lead to hyperinflation and the complete devaluation of the dollar. He also notes that the Fed’s policies are so opaque that most people are unaware of the true scale of the problem.
Bitcoin as a Safe Haven
Balaji S. sees Bitcoin as the only way out of this mess. In his view, Bitcoin is the ultimate hedge against inflation and the perfect safe haven for investors looking to protect their wealth from the ravages of central bank policies. He recommends that investors buy Bitcoin and move their coins off exchanges to avoid the risk of confiscation.
Balaji S. also advises investors to seek out Bitcoin-friendly jurisdictions like Florida, Texas, El Salvador, and the UAE, where they can feel secure in their ownership of Bitcoin. He believes that the tide is turning in favor of Bitcoin, and that more and more people will begin to realize the true value of this revolutionary technology.
Balaji S.’s warning about the Fed’s trillion-dollar printing press is a wake-up call for anyone who cares about the future of the global financial system. His message is clear: the Fed’s policies are unsustainable, and the only way to protect your wealth is to invest in Bitcoin. As the world becomes more aware of the dangers of central bank policies, it is likely that more and more people will turn to Bitcoin as a safe haven.