Never ever thought I'd write this, but the "crypto bugs" finally start to make sense to me.
An artificial asset inflation, covering up an actual underlying deflation. You don't really wanna own gold because 1) it isn't 1930 (at least not yet) and 2) we're not gonna have hyperinflation (or even normal inflation) in the real economy, rather deflation. In deflation you wanna have cash. If fiat cash finally fails, then – enter crypto. People aren't gonna walk around buying stuff with gold. At least not in a country like Sweden, where we trust our masters in the govt with our lives and no-one uses cash. But here too, people care about privacy. Gold and crypto seems like the only "privacy plays" in town, in a time where everyone in the world is being watched and listened to by their own states and the companies from whom they bought their phones.
Still I'd like to have at least 10 % Au and Ag in my portfolio. Probably add 10 % crypto and/or other stuff like trackers of electricity price. As Ray Dalio says, what you want to have right now is perfect diversification – there's just no telling what will happen the next 5-10 years, waaay to many weird inputs into the economy.
It seems clear that we'll probably have to do a total debt write-off like they used to do in ancient Egypt, according to Piketty & Graeber:
"In antiquity, slavery for debt was quite common; we find traces of it in the Bible as well as on Mesopotamian and Egyptian steles, which depict endless cycles of debt accumulation and enslavement, sometimes punctuated by periods during which debts were canceled and slaves freed in order to restore social peace."
In antiquity, slavery for debt was quite common; we find traces of it in the Bible as well as on Mesopotamian and Egyptian steles, which depict endless cycles of debt accumulation and enslavement, sometimes punctuated by periods during which debts were canceled and slaves freed in order to restore social peace.
That, or create real inflation to eat up the govt debts like Britain did when they had ~200 % gvt debt in the 19th century.
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Had a change of mind and decided to sell half of my airline stock SAS after another massive up day today. Just seems too much like a "bear market bubble" right now. DJIA up 13 % YTD. NSDQ an astonishing 34 %. I second Elroys question: what's so great with "normal" as to warrant ATH during an absurd time like this? Obviously you can't justify such a thing. It just seems perverse. But the explanation is of course that that is what happens when you go ahead and do stuff like this:
Stock market rise is just an inevitable reaction of all the extra liquidity in markets. When M1, M2 and M3 all are up between 30-50 % since March – well there you go. As long as markets have some faith in your authority and currency, that is what will happen.
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