Investing

Our mistake at GMI was not seeing the US liquidity as the current driving factor, when it is usually Global Total Liquidity that dominates over the full cycle. But now it is clear, and it is still The Everything Code at play...

There is no disconnect. It's just that the confluence of events Reverse Repo drained >TGA rebuild > Shutdown >... See more

Warsh will cut rates and do nothing else. He will get out of the way of Trump and Bessent who will run liquidity via the banks. Mirran will likely force through the full reduction in the eSLR too in order to goose the process.

Now, the US gov is shutdown...again. The Treasury hedged this by not drawing down the TGA at all after the last shutdown and in fact added more to it (more liquidity drain).

This is the current air pocket we are facing and it's causing brutal price action. No liquidity for our beloved crypto yet.

However, the signs are that this shutdown will get... See more

The rally in gold essentially sucked all marginal liquidity out of the system that would have flowed into BTC and SaaS. There was not enough liquidity to support all these assets, so the riskiest got hit. C'est la vie.

Bringing this back to our earlier framework: metals are telling you spot debasement is happening; Bitcoin will tell you when the yield curve itself breaks.

The Zero-Sum Reality

These three markets (AI growth, housing, and Treasuries) collectively represent over $100 trillion in capital. They don’t all need to collapse for Bitcoin to succeed in a negative rho world, but they do need to become less attractive relative to zero-yield alternatives.

That happens in two ways: either rates go deeply negative... See more

Debasement (the expansion of the money supply beyond productive output) is occurring right now. As we’ve established, precious metals are capturing this through spot price appreciation against dollar weakness. Silver’s nose-bleed rally alongside gold at record highs confirm the dollar is losing purchasing power against real goods.

But Bitcoin isn’t... See more

We’re currently experiencing good deflation in technology sectors while avoiding bad deflation in credit markets. This is the worst possible environment for Bitcoin: productive enough to keep growth assets attractive, stable enough to keep Treasuries credible, but not catastrophic enough to break the system. A perfect goldilocks for maximum... See more

Most Bitcoin advocates conflate monetary expansion with hard asset appreciation, assuming it automatically flows into scarce stores of value. This ignores a critical mechanism: cheap money doesn’t necessarily mean money flows to hard money without understanding the shape of the yield curve. When rates fall, duration-sensitive assets, especially... See more