Could someone please explain how this relates to Bitcoin and the current dip/crash?

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As inflation became a concern lenders required more interest on their loans because they expected the future value of money to be less than the current value.

As inflation continued to accelerate so did interest rates. Yet this did not hamper borrowers, since they were also confident the value of the future money they owed would be far less even with exceptionally high interest rates.

These fluctuations in commodity price likely reflect the short term impact of increased interest rates on prices, followed by the realization that inflation is continuing to accelerate, people will take on more loans to buy anything and everything they can to try to hold onto value.

I’m often wondering if this is actually a direct parallel to our current situation.

Oil is now for sale in currencies other than USD, and the us demonstrated to all nations that their ownership of USD is contingent US relations. There is occurring or will occur a massive rebalancing in global treasuries, and this will send hundreds of billions of USD cash crashing back to our shores.

Raising rates is just a desperate and hopeless lever that will not meaningfully alleviate inflation in the long run. Im skeptical the fed can even keep rates above zero very long , how long until the government needs to issue more debt? And at a higher rate will mean the gov will need to issue even more debt to service that previous debt. In a sense the fed could cause more inflation with higher interest rates , just an accelerated version of what’s already been happening.


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