Bank Of England: "We Are Living Through The Longest Recession On History".
And it will be extended until 2024
The Bank of England was one of the first to be encouraged to raise rates. It was also one of the first to realize the stark reality. It is terrible, but at the same time, it is honest on its side. Human beings always think they are right, and when we leave our economy in the hands of a few people, it is certainly difficult for them to admit they are wrong.
We have been warning about this for more than a year. When you take exceptional measures, you usually get exceptional results. And this is basically what has happened with the measures taken by central banks during the pandemic.
The UK central bank has admitted that it is experiencing the most prolonged recession on record and that it will extend until 2024.
It announced this after raising rates by 0.75 points for the first time in 33 years.
The Fed has pivoted
Wednesday was one of the most critical days for the Fed all year. They were to announce the November rate hike. Everyone knew this was coming, but it was uncertain how much they would raise after seeing how the CPI had not declined as much as expected in October.
Powell did something very curious. On the one hand, he raised rates by 0.75%, as everyone expected. This, at first should have been a "positive" for the markets. However, Powell gave a totally negative speech to the markets.
The message he gave was tremendously pessimistic. He said that inflation was not being controlled and that he would maintain his restrictive policy. What happened was that the markets were stained with blood.
The markets are adulterated, and a comma in a speech can make them go up or down more than 3% in one day.
We live in an unfair and uncertain world. Furthermore, they continue to be allowed to invest while being fully aware of how the market will react.
It seems that the only viable (and fair) alternative is a decentralized world. A world where the rules of the game are known. A world where purchasing power is not lost by 10% every year. Bitcoin and Ethereum can only fix this.
We know the inflation rate would be less than 2% with ETH and Bitcoin. A rate that today's central banks would like to know.
Crypto continues at its own pace.
It seems increasingly impossible to think of a world without cryptocurrencies. We refer to the facts:
Google Cloud Platform has gone from not relying on blockchain to having servers destined for Ethereum nodes.
Meta has agreed with Arweave to foster Instagram's integration with NFTs.
Mastercard includes cryptocurrencies to its network.
Fidelity allows cryptocurrency trading for free.
All companies are starting to realize the multiple advantages that they bring. One of the biggest thesis against cryptocurrencies is that they do not produce cash flows. However, this is not the case for all of them. Ethereum, for example, produces revenue, and if Ethereum were a company, it could reach $26k in the next few years.