Latest / Simply Bitcoin / The Fed LIED and Markets Know It (Why Is Bitcoin DOWN?) | Simply Originals

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The Fed LIED and Markets Know It (Why Is Bitcoin DOWN?) | Simply Originals · Simply Bitcoin

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Well, Jerome Pell took to the stage yesterday, held rates and
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unleashed the fury your. Options.
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Your zero DTE calls the economy inflation, your soft.
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Landing I am sick of this. Shit, Wall Street you all.
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I'm. Now more from Powell in a
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minute. But Trump definitely not happy.
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Oh and look at that, he wrote a strongly worded letter.
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Whatever will Jerome do? Well Jerome in his actual
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statement lied and markets know it.
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Just yesterday alone gold added the entire market cap of
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Bitcoin, 1.75 trillion added in a single day.
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Meanwhile, Bitcoin trapped in pergody story.
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So what the hell is going on? Because this sort of whatever
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happens typically before, like riots in the streets or major
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conflict in war, the Weimar vibes are intensifying.
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This is the prequel to the sequel of something.
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What does it all mean for Bitcoin?
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Well, it means the fastest horse in the race is about to be let
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out of its cage, and when it does, it's going to be insane.
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Bitcoin is always very gradually dumpy before suddenly and pumpy
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we're breaking it all down. the Fed the absolute insanity of
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what just happened and why Bitcoin could be ripping
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everyone's faces off very soon. Oh yeah, we got a lot to get to
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today. While job gains have remained
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low, the unemployment rate has shown some signs of
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stabilization and inflation remains somewhat elevated.
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In support of our goals today, the Federal Open Market
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Committee decided to leave our policy rate unchanged.
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Having lowered our policy rate by 75 basis points over the
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course of our previous three meetings, we see the current
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stance of monetary policy as appropriate to promote progress
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toward both our maximum employment and 2% inflation
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goals. The, the, the point of, of
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independence is not to protect policy makers or anything like
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that. It just is that every advanced
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economy democracy in the world has come around to this common
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practice. It's just an institutional
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arrangement that is that has served the people well and that
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is to to have a separation between, to not have direct
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elected official control over the setting of monetary policy.
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Well, there's those words again. Democracy and independence.
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Why don't we start today by discussing the idiocy and lie in
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both? You see, here's what Socrates
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had to say about democracy more than 2000 years ago, and you
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tell me he didn't absolutely nail it.
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He said that democracy must fail because it'll try to tailor to
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everyone. The poor will want the wealth of
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the rich, and democracy will give it to them.
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Young people will want to be respected as elderly, and
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democracy will give it to them. Women will want to be like men,
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and democracy will will give it to them.
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Foreigners will want the rights of the natives and democracy
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will give it to them. Thieves and fraudsters will want
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important government functions and democracy will will give it
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to them. And at that time when thieves
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and fraudsters finally democratically take authority
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because criminals and evildoers want power, there will be worse
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dictatorship than in the time of any monarchy or oligarchy.
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I don't know, but I think Socrates nailed it.
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He basically took the entire Dictator's Handbook and put that
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in a paragraph. Democracy is a scam and
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independence politically working against the elected
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administration's agenda is the complete opposite of
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independence and it makes you political, not apolitical.
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I mean, the truth is they've never been independent and
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they're basically a foreign agent.
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The Fed has never been independent.
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You got a $38 trillion indebted drunken country that is addicted
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to spending money and you think the people that set interest
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rates is independent? I mean, but like be be a serious
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person. Are we able to pay back what
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we've borrowed based on the growth we're producing today?
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When you have a number that's over 120%, the answer to that is
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overwhelmingly no. We have zero chance at paying
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back and making whole on the 38 plus trillion dollars worth of
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debt we've accumulated. And by the way, the cost of
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interest on our $38 trillion, well it is over 100% of our
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receipts of our revenue. So when you have debt to GDP at
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over 120% and when your interest expense alone, guys, not our
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defense budget, not our Social Security budget, not Health and
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Human Services, just the interest on our $38 trillion of
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debt, we cannot pay with receipts.
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So understand this, the Federal Reserve in setting interest
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rates defines U.S. economic policy, US foreign policy, EU s
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s ability to defend itself. So mathematically, the Fed is
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the furthest thing from independent because these
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degenerate politicians have run the Great West and the United
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States of America into the debt ridden ground. the Fed has never
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been independent and they're not independent now.
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We have to admit it. Does it mean what Trump is doing
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is good? No, I didn't say that.
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But you want the truth. Mathematically, the Fed can't be
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independent. What's that is said about
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independence again? Jay Powell, why haven't you been
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audited? What are you guys hiding over
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there? For every dollar that Federal
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Reserve employees donated in the 2020 election, 97 cents went to
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Democratic candidates and causes.
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For everyone Republican who works at the Fed, there are 10
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Democrats who work at the Fed. Jerome Powell, for now the fifth
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straight meeting, has refused to lower interest rates.
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Now make no mistake, this was the same man that right before
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the election, 47 days before the 2024 election, cut rates by the
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largest amount in over 4 years. He cut rates then, but will not
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cut rates now, even though President Trump has gotten
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inflation back below 2%. Now, why does it matter that
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Jerome Powell is not lowering interest rates?
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Why does that matter to each and every one of us?
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Well, because if your interest rates are high, your mortgage
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rates are high. If your mortgage rates are high,
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you can't afford a home. If you can't afford a home,
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young couples, a man who has found a God fearing woman in his
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life cannot marry that woman, cannot start a family, cannot
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grow a family for the very simple reason that they cannot
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buy a home. And the reason is goes down to
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the Federal Reserve's own mandate, their refusal to do the
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right thing, to look at the economic data in front of them.
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I like that fishback guy way better than that dude in high
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heels that attacked American free speech on behalf of a
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foreign government. But moving on back to the matter
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at hand, here's the insanity of what just took place in markets.
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And to me, it says everybody knows the Fed isn't independent
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and trust globally in the entire financial system is breaking.
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It's falling apart and it's doing so rapidly.
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While in the top phase, most of these strengths are sustained,
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embedded within the fruits of their success are the seeds of
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their decline. As a rule, as people in these
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rich and powerful countries earn more, that makes them more
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expensive and less competitive relative to people in other
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countries who are willing to work for less.
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At the same time, people in other countries naturally copy
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the methods and technologies of the leading power, which further
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reduces the leading powers competitiveness.
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For example, British shipbuilders had less expensive
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workers than Dutch shipbuilders, so they hired Dutch designers to
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design better ships that were built by less expensive British
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workers, making them more competitive, which led the
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British to rise and the Dutch to decline.
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Also, as people become richer, they tend not to work as hard.
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They enjoy more leisure, pursue the finer and less productive
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things in life, and at the extreme, become decadent.
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Values change from generation to generation during the rise to
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the top, from those who had to fight to achieve wealth and
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power to those who inherited it. They're less battle hardened,
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steeped in luxuries and accustomed to the easy life,
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which makes them more vulnerable to challenges.
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The golden era of the Dutch Empire.
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In the Victorian era of the British Empire were such high
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prosperity periods like this, as people get used to doing well,
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they increasingly bet on the good times continuing and borrow
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money to do that, which grows into financial bubbles.
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Naturally, the financial gains come unevenly, so the wealth gap
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grows. Wealth gaps are self reinforcing
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because rich people use their greater resources to reinforce
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their powers. For example, they give greater
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privileges to their children, like better education, and they
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influence the political system to their advantage.
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This causes the gaps in values, politics and opportunities to
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grow between the rich haves and the poor have nots.
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Those who are less well off feel the system is unfair, so
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resentments grow. But as long as the living
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standards of most people are still rising, these gaps and
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resentments don't boil over into conflict.
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Having the world's reserve currency inevitably leads to
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borrowing excessively and contributes to the country
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building up large debts with foreign lenders.
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While this boosts spending power over the short term, it weakens
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the country's financial health and weakens the currency over
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the long term. In other words, when borrowing
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and spending are strong, the empire appears very strong, but
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its finances are in fact being weakened.
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The borrowing sustains the country's power beyond its
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fundamentals by financing both domestic overconsumption and
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international military conflicts required to maintain the empire.
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What's happening right now should be statistically
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impossible. In one single week we've seen
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three separate 6 Sigma events. Bond, silver, gold, A6 Sigma
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move is supposed to happen once in like 500 million
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observations. That's how rare this is.
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Now watch this. Last week, Japanese 30 year
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bonds printed A6 Sigma, a session historic, on its own.
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Days later, silver went five Sigma on its rally, then six
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Sigma on the drop in the same session, and now gold is up 23%
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in under a month, pushing toward its own 6 Sigma move.
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That's three again. Three in one week.
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That is never happened. Never.
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And here's the key .6 Sigma events don't come from
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headlines, they come from structural stress, leverage,
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margin calls, collateral breaks for selling and forced buying.
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When stress starts in Japanese bonds, one of the core pillars
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of a global finance, it's spreads, leverage contracts.
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Some assets get liquidated, others get bought as protection.
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Historically, that protection is gold and silver.
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When bonds and precious metals break out at the same time, it's
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not noise. It's a monetary regime cracking.
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This is how paradigm shifts begin, and the moves that follow
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are violent. So pay attention.
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Bitcoin does a lot more with a lot less, and it appears we're
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on the cusp of Bitcoin going ballistic.
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We're about to bring it home today.
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But before we do, look at our likes 3 or 4 times maybe.
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13:31
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So the money that's coming in here, Robin, one, it's larger
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than all the money in the 1st 13 years of Bitcoin's history.
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All the money that flowed into Bitcoin's history has been
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massively surpassed in volume terms and quality.
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I would actually build the case. It's better quality money, no
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offense to the old guys, but to the OGS, but it is better
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quality, has deeper roots. It doesn't get liquidated as
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easily and it's extremely well thought out.
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And that's I think what we're seeing here.
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We're seeing a slow movement of diversification away from other
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assets and into Bitcoin and or we're seeing fresh money move
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into Bitcoin that is coming out of those distribution models of
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bonds, real estates, private equity sales.
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And there's a lot of really good reasons why we have suffered on
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price here in the last six months.
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Very logical reasons. Most of those who I think were
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tax driven and they all came through the SBRS and everybody
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tried to get clever on the SBRS and they fucked up the Bitcoin
15:58
position. So I'm, I'm dude, I'm as bullish
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as I was. When was the first time I was on
16:05
the show 2 years ago, three years ago.
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I'm probably more bullish today than I was and and I've raised
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my I've raised my goal of how much Bitcoin I want to obtain.
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And by the way, I am absolutely shocked that I'm still able to
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buy it at 5 digits. You're not the only one,
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Cardone. Again, we are in the middle of
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the biggest opportunity and arbitrage of the century.
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We are approaching Tour de Meister's last support line at
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14 ounces of gold. At the same time, Bitcoin is
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nearing the end of its typical bear market against gold.
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And at the same time, Bitcoin verse gold just reached its head
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and shoulders target of 16 right as the bear market reaches its
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typical 14 month duration soon might be right Now here's
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something I found, something that could recalibrate your
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thinking. Bitcoin has never hit a true
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cycle peak while ISMPMI is below 50.
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There are no edge cases, no footnotes.
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It simply hasn't happened, and yet this entire move we're in
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right now is taking place under that line that tells you we're
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in a setup phase. PMI below 50 is when the economy
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slows, pressure builds, and liquidity quietly re enters the
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system. It's when positioning happens,
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not exits. This is the zone people
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consistently misunderstand. They confuse boredom with
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danger. They mistake consolidation for a
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top, then conditions shift, momentum returns, and Bitcoin
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does what it always does and suddenly everyone claims they
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saw it coming. So no, this isn't the end.
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It's the part right before the story changes.
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Book market will come back to this when the price is higher
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and the bears have been slaughtered and the possibility
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of World War 3 is higher than ever.
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18:27
No problem. What do you guys think?
18:29
Let us know down below and don't forget to like subscribe and
18:31
give us a pan by sharing this sound money gospel.
18:34
I hope everyone has a great weekend stay tuned.
18:36
We get a lot of great stuff coming your way set those
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notifications for the best in Bitcoin news delivered to you
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daily and I'll catch you all next time Love you guys if you.
18:46
Prefer to go down with the ship.