By Mike Adams - naturalnews.com
The absurd but often-hyped claim that "crypto is digital gold" has collapsed. The LUNA token, part of TerraUSD "stablecoin" ecosystem, turned out to be entirely unstable, collapsing to zero after a massive hyperinflationary LUNA token creation event (combined with a redemption / selloff factor) that plunged into a death spiral this week.
All LUNA investors are completely wiped out, and the very idea of a "stablecoin" has taken a huge hit in credibility. (Only in the crypto world could something described as "stable" by the entire community collapse to zero virtually overnight, with almost no one calling out the irony.)
As I've repeated warned for many years, crypto is a technology with many significant advantages, but don't ever make the mistake of thinking crypto is a "store of value." It isn't.
If you want to hold on to something with value, buy physical gold and silver. Crypto is for transactions, not savings, and all the crypto "hodlers" have been pleading with people to "hodl" their coins (avoid selling them) solely because that was the only way to keep the Ponzi pyramid intact. But if the "value" in crypto depends on nobody ever redeeming it or selling it, then there's really no depth to that "value," is there?
Bitcoin has plunged nearly 60% from its highs, and the bloodbath of crypto carnage that unfolded this week was psychologically jolting to crypto "investors" who have long thought that crypto would go up forever, never facing corrections or reality checks.
But crypto isn't the only bubble around. By any honest measure, we are currently in the "everything bubble," with perhaps only gold and silver representing any real bargain that can be found. Nearly everything else is in a bubble: Stocks, bonds, real estate, crypto, used vehicles and of course fiat currencies backed by nothing. The bubble is, of course, epic in scale and soon to be devastating in its unwinding. No bubble in history has been this large and widespread, and no crash in history can compare to the crash that's coming.
What this week proved is that crypto is not a safe haven from crashing stocks. In fact, the downward trend in crypto appears to be strongly correlated with the selloff on Wall Street. As stock traders get triggered with margin calls, they sell off crypto assets to meet the margins on plunging stocks. This, in turn, cascades into margin calls in the crypto space which only accelerates the downward spiral of crypto.
This is why I believe the Fed is going to be forced to reverse course very soon and drop interest rates while flooding the market with new liquidity by buying up stocks, bonds and everything in sight. The Fed's balance sheet is about to explode in size, which is the opposite of what the Fed claims to be trying to accomplish. But what they've come to realize after this week is that even the slightest nudge to interest rates can crater this fragile, overblown stock market.
It's only a matter of time before they reverse course, which means the Fed will be choosing hyperinflation as the course of action from here forward. That also means the stock market will skyrocket one more time as the Fed injects more liquidity into the system. But it also means the final crash will be so much worse than it should have been.
I think PPT has a some spare change left but that's about it. Brace yourselves for the coming collapse sheeples.
The market isn't completely manipulated. That's why it's collapsing now. It's getting away from them. You can only corrupt an open system (and the market is open, at least to the degree that it still functions as a capitalistic entity) with irrational inputs for so long before the cumulative outcome of all your manipulations change it into something you no longer control, or even recognize. The greater the irrationality of your choices, the greater and faster the transformation. This holds for political systems as well as financial and economic ones.
My take, the crypto carnage, the falling prices of precious metals, the fact that sitting on dollars is an automatic 15% annualized hit, and the Fed's raising rates, is all part of the plan ... a way to drive stocks and bonds back up for one last boom, before the big bust! Since many have already fled the markets, the powers that be, need to draw folks back into the 'system' for one last ride. Beware though, no one but holders of Gold & Silver will survive the next crash!
The Fed is 'tightening' while at the same time printing like mad to hold it together just a little longer. Like, until September? The libtards/communists/demorats need some, or multiple excuses, to 'postpone' the election, and they need a couple good ones just in case. Economic chaos would work...FJB and the libtard media everywhere!