Bitcoin is going to shine like a diamond in the midst of the smoldering wreckage of this god-forsaken
SNAFU
germany should know better
At least Japan and Germany are not as bad as the US over the past couple of years. With QE3 the US printed $85b/m for $1.02T/year, that's trillion. The US's deficit was less than a trillion recently (although not by much), so the FED was not just monetizing 100% of the deficit but also buying down additional outstanding debt as well. I'd like to believe it can't get any uglier than that, but I'm sure they'll find a way to surprise me.
It isn't quite as clear cut as all that though. Here in the UK we have QE, too. The BOE bought government bonds, GILTS, and basically own the market and allows ZIRP to continue happily. Last time I checked they owned more than a third of the
entire British national debt. The bonds owned by the BOE are paid an annual interest payment (coupon) by the UK government. It is simply handed straight back. The bonds will be held until they expire. Apart from the initial emission via the deficit in the form of inflation the newly created debt has no effect in the long term to the balance sheet of the UK. It is illusory.
It is similar in the US. It is total banana republic stuff and I expect there will be a tipping point where there may be a sudden flight from a Western currency, say when a certain % (50?) of national debt is owned by the central bank. But this can be gamed and obfuscated for a long time.
Other central banks can print money out of thin air and use it to buy different nations bonds, or even buy stocks lol.
Central banks crossed a line in 2008. They now control all markets. They have dislocated the markets in such a way that it is impossible to measure the true value of any stock or commodity or even gold.
Bitcoin is
necessary as it cannot be inflated outwith its algorithmic schedule.
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