Max Keiser provides a Bitcoin update and explains why this crash is different – currently down 70% and falling. Bitcoin was trading around $19,600 Monday morning but broke critical support at $19,500 for most of the weekend.
He believes the Russian-Ukraine war, which began in February of 2022, marked the end of the 40-year bull market in bonds.
Secular Inflationary Move, Tied to Commodities
Keiser talks about the era of falling interest rates and why “the price of stuff like energy and food cannot be hidden anymore.” So, central banks are hiking rates rapidly, with inflation at 40-year highs in many countries.
Keiser talks about a secular shift in inflation across the economy and globe and believes that it will be with us for years, not months.
Financialized World is Crumbling
For some reason, Keiser believes Bitcoin is a risk-off asset. He explains,
“… it’s Unconfiscatable, uncensorable, unmutable.” Bitcoin maximalists, which Max is, believe Bitcoin solves many problems.
Fed Still Living in the Past, Despite Strong Dollar
Max believes the Fed is living in the past; from Greenspan to Bernanke, the “activist Fed” prints money and lowers rates, and all is well. But that model died in February, after Russia attacked, according to Max. He believes the old financial world, run by the U.S., has shifted to Russia, China, Iran, and India. And that billions of people want to live outside the U.S.-dominated financial world. And “…those countries are going to be determining prices, going forward.”
Market Price Works its Way into Reality
Keiser predicts gas prices will go to $10, $11, $12, and $15 per gallon in the United States.
Finally, Max says that people are dumping the dollar, which won’t be the reserve currency for long. He also points to the ESG or climate change industry, which has been blown up. Lastly, he cites Germany returning to coal and the unluckiness of millennials, who’ve seen one economic crisis after another.