I know guys that the price action is good, and everybody likes green dildo's (#nohomo), but Jay "do nothing" Powell is testifying at the House , and he's saying a lot of intresting things.
https://www.nasdaq.com/articles/yields-rise-after-powell-says-economy-is-resilient-2020-02-11"Powell's remarks had nothing new and toed the party line," said Jon Hill, U.S. rates strategist at BMO Capital Markets. "Rates are in accommodative territory. They're on hold for the foreseeable future."
If Powell said nothing new, why rates are falling off?
This technicality apart I was referring mainly to FED REPO operation,
discussed here and the advent of FED in the realm of Crytpocurrencies, the so called CBDC.
A few sentences were of utter importance:
Powell: preserving the centrality of a widely accepted currency is an enormously important thing. Whether a digital currency moves us along that path is an open question.
Powell: It’s incumbent on central banks to understand the costs, benefits and trade-offs associated with digital currencies.
Asked about a digital currency, Powell says:
“Having a single government currency at the heart of the financial system is something that has served us well.”
So the real problem with digital currencies is: USD is a World Reserve, they fear that opening to CBDC could ease the transition to Bitcoin in the main adoption.
Once BTC has gained traction on the general public, the effectiveness of their monetary policies will be greatly reduced. They will lose then one of the main leverage for the governments, and, in the end, will lose powers.
They built supercarriers and nuclear missiles to preserve their power, for sure they don't want to lose it because of a nerdish decentralized, trustless system.
They realized it and now you can smell their fear.
However, the genius is outside the lamp since 2009, the future is inevitable.
Powell: Northern European economies have moved away from cash to a remarkable degree, more so than the U.S.
Powell said many questions need to be answered before adopting digital currencies in the U.S., including cybersecurity.
This is dystopian future he's depicting. Once again is not cybersecurity what they fear, but the lack of control.
Not because it's right, but because they can.
Cashless society is dystopian slavery.
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