2. The Japanese Yen, the 3rd largest currency in the world, is being destroyed by its central bank.

The Bank of Japan is buying UNLIMITED quantities of Japanese Government Bonds to prevent yields from going above .25%

Why? Above .25% and the Japanese banking system implodes.

Watching the Bank of Japan destroy the Yen offers a glimpse into the future of other major fiat currencies, including the USD.

When the debt becomes too large, yield curve control and destruction of the currency becomes one of the only ways out

would be nice if true going forward.

Peter is super wise and insightful.  Particularly when he is not taking jabs at bitcoin maxis.  I get why he is annoyed by them... they are arrogant little pricks most of them.  And his understanding of markets would do them a lot of good.  But they are usually too busy "ok boomering" him to hear him. lol.

I expect this level of the 2017 peak is going to cause a LOT of capitulation, particularly for the class of 2017.  I am surprised we came this low, and I would also be surprised if we go lower... sort of.  It kind of seems like that is in the cards for sure.  I wish i had some cash.  We MAY have seen the main puking... but it does not look like it. :/

Somebody after Saylor's coins?
$21k and he's said to be liquidated...

Everything is breaking.

Years of 0% interest rates encouraged everyone to take on cheap debt. Corporations, countries, individuals... Everyone.

Most of the debt wasn't used productively - meaning most of it will never be paid off.

And now that interest rates are rising...

Our current economic system REQUIRES more debt to survive.

Just take a look at this graph and you'll see that the amount of debt only goes one direction.

If we don't pile on more debt, the entire thing collapses - and that's what we're flirting with now: Systemic collapse.

The amount of new debt required to keep things propped up is at truly silly levels.

And the Fed is making one last attempt to deny reality by raising rates...

But the only way to stop our momentum is to slam into a brick wall of economic pain - which is exactly what's happening

We're seeing the chaos play out in all markets:

- Equities are tanking
- Bond yields are surging
- Currencies are plummeting vs. USD
- #Bitcoin selling off
- Shitcoins evaporating

There are very few places to hide. And cash is being eaten by inflation of 8%+

Here are some charts that illustrate how crazy things are getting:

1. German 10 year yields just broke through a 4 decade long trend line.

The German economy is being crushed by inflation, but the EU can't raise rates without bankrupting Italy and Greece. The EU is trapped.

2. The Japanese Yen, the 3rd largest currency in the world, is being destroyed by its central bank.

The Bank of Japan is buying UNLIMITED quantities of Japanese Government Bonds to prevent yields from going above .25%

Why? Above .25% and the Japanese banking system implodes.

Watching the Bank of Japan destroy the Yen offers a glimpse into the future of other major fiat currencies, including the USD.

When the debt becomes too large, yield curve control and destruction of the currency becomes one of the only ways out

3. Dollar weakness vs. the Russian Ruble.

Russia is done accepting cheap fiat for scarce goods. This severely limits the ability of Central Banks to kick the can by printing.

Russia is calling the fiat bluff - and the implications are massive.

4. Corporate bonds are falling off a cliff as investors realize that a lot of companies won't be able to pay off their debt at higher interest rates.

Companies that can't afford to refinance will need to layoff employees and liquidate assets which is bad news for everyone.

5. Let's take a quick peek at how mortgage backed securities are holding up through all of this... YIKES.

Fun Fact: The Fed says they're going to sell some of the MBS that they bought during QE. Good luck.

By now you get the point: The entire system is crumbling. Cracks are opening up and portfolios are tumbling to hell.

And yet... What can the Fed do? With inflation absolutely crushing people, can they really reverse course and fire up the money printers again?

Inflation in the real world (with pressure applied by Russia) means we're now facing an impossible policy choice: Mass default leading to systemic collapse, or continuing down the path towards hyperinflation.

And this finally brings me to #Bitcoin and why I'm calmly stacking through the chaos.

Let's be frank: The #Bitcoin price is melting down. It's testing the low $20K range as Celcius blows up and shitcoins head to zero.

But the value prop of Bitcoin remains exactly the same.

Everything that is playing out right now is why we've been stacking #Bitcoin to begin with.

The fiat system is falling apart. And we need a form of money that can be held safely outside of the system without counter-party risk.

I'm very curious to hear the story/reason that they skipped 'Web4' and went to 'Web5' ??


If Jack were to say something about that, I think his answer would be that "Bitcoin will be the currency of choice for Web5 transactions."

Jack Dorsey’s Bitcoin-focused TBD business unit, a subsidiary of Block Inc., announced Friday that it is building a new decentralized web: Web5.

Web5 is based on the assumption that Web3, the idea of building a decentralized web with blockchain technology and cryptocurrencies, has the right intentions but is using the wrong tools.

Web5 leverages Bitcoin, the decentralized monetary network, and a plethora of sound computer science technologies to create a new ecosystem of decentralized identities, data storage and applications in which the users are in control of their personal information.

Fairly decentralized developments in the internet over the past couple of decades such as BitTorrent and Tor have shown that blockchain technology is not a necessary component for decentralization. Rather, the blockchain has only proven to be needed for a very specific purpose – mitigate the double-spend problem to successfully bring peer-to-peer money to the digital realm with Bitcoin.

TBD’s Web5 is made up of software components and services such as decentralized identifiers (DIDs), decentralized web node (DWNs), self-sovereign identity service (SSIS) and a self-sovereign identity software development kit (ssi-sdk). These components let developers focus on building user experiences while more easily enabling decentralized identity and data storage in applications.

Yup we're a postage stamp sized country trying to single-handedly solve the climate crisis 

In recent months, NFTs (non-fungible tokens) have become increasingly popular with many celebrities promoting their own NFTs. Now, many fans who invested in digital tokens promoted by their favorite stars are financially “crippled.” One investor believes that celebrities “took their payouts and moved on while everybody who scraped by to invest in their futures got robbed.”
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Tyler invested $12,000 into the NFTs, which are just a series of images of rabbits similar to the popular Bored Ape Yacht Club that grew in popularity as NFTs became more prominent in the crypto space, based on Mayweather’s endorsement of the project.

The Bored Bunny NFTs are now worth much less than the $12,000 Tyler paid. “This basically financially crippled me,” said Tyler. The 35-year-old property manager is now struggling to pay for basic necessities like gas and groceries.
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But this is an ongoing pattern in the crypto space, especially with NFTs. The practice is referred to as a “rug pull” in which new NFT projects are promoted with high-profile endorsements that sell a large number of NFTs that promptly lose most of their value.

Sumitomo Mitsui Trust, Japan's second largest bank, is creating a new company called Japan Digital Asset Trust to offer custodial services for bitcoin and other cryptocurrencies for institutional clients, according to a report by Nikkei Asia.

The new company will hold assets like bitcoin and other cryptocurrencies for large investors and corporations because the company reportedly believes investors will feel more comfortable if the custody of those assets can be held by trusted financial institutions

Global restaurant software provider Lavu announced on May 19, that they’re now in cooperation with Verifone a global FinTech payment solution provider.

The partnership will offer smooth integration of Lavu’s restaurant software suite with the Verifone FLEX payment options, enabling the companies based in more than 65 countries to offer a unique point of sale (POS) solution with multiple modern payment methods to their customers.