i've been formulating a theory why the 10 yr bond and btc seem to be so interconnected
think about it
what is the 10 yr bond
what is bitcoin
hint it is debt
which prints more debt
and what is btc
is btc debt?
the 10 yr bond is the ultimate debt
the mother of all bubbles in history
and what is btc...
the ultimate hard money or CREDIT that cannot be FAKED
they are literally arch nemesis
that is why they react inversely around each other almost exactly
a closer inverse relationship between these two than any other assets i would dare to hypothesize
including dxy
so what's happening here
yield rises
means i get to seal a bond paying yield
but that yield is debt, or interest on the debt that i bought that is the bond itself
so more debt on debt
now as the yield rises why would the fed push it down?
because it has obligations to pay out more interest the higher the yield
it is in their own interest to save money just the same as anyone
so what do they do
they print more dollars to buy that debt/bond
which causes the yield to go back down
as the supply of the debt is inflated
which is directly correlated with well, inflation
which has direct implications upon the dxy
and then all risk on assets
it makes perfect sense to me
this has been a riddle to me for a long time
gregory mannarino helped me put the last piece together and now it all makes genius sense
i almost think i could predict anything now
all i have to do is look at a single chart
and that is 10 yr vs btc
literally that's it that's the master key to trading
let me wax poetic
bitcoin is the death knell of the mother of all bubbles which is the debt bubble the amount of which is in the quadrillions it isn't even known
from that is spawned the very basis of measurement or unit of account known as the dollar
and then measure of that relates to all assets prices
bitcoin is destined to destroy the slave system of infinite debt once and for all
and it fucking will
because it's the difference between an illusion of credit and real credit in the form of mathematically verifiable hard money that cannot be faked
you can build derivatives on the real thing all you want, but it's based on something real
not something that can be printed, more debt, to buy the debt, to continue same ole same ole
in other words there are limits, it's not infinite like the ability of central banks to generate more debt out of nothing based on nothing real
mannarino understands perfectly clearly this will come to an end at some point
and nobody knows when
however he also believes the central banks will simply continue minting figures from their computers without limit to keep the bond market stable in other words not spiking to ridiculous levels
and why wouldn't they continue
it won't end
until crypto absorbs every last bit of power that is held up in debt
and in process "deflating" that debt until all that remains is whatever real value is actually implied there
which is probably on the order of 1 to 10,000
until balance eventually comes between the hard mathematically verifiable credit and the infinite debt
that is an illusion of wealth, but not real wealth
so crypto/btc has come to bring balance to the force in this way
order and balance shall be restored in the monetary system
which underpins and defines all corrupt governments
the antidote to tyranny is free sound money that cannot be intrinsically corrupted