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1/The power of the Federal Reserve is astounding yet confounding. Despite 100+ years of unprecedented, unfettered mandate it has failed over and over again. Let’s take a look at the 2008 crisis and why #bitcoin matters. ⤵️
2/During the crisis, the Fed’s balance sheet exploded. The Fed made large scale bank asset purchases (aka QE) and credited banks with reserves held at the Fed, injecting liquidity, easing lending. 
3/On national television Fed Chairman Bernanke said balance sheet expansion was akin to “printing money.”
4/Later Bernanke explained it’s not really money:
“They (the reserves) are electronic entries at the Fed”
“They're not part of any broad measure of the money supply. They're part of what's called the monetary base.”
“They (the reserves) are electronic entries at the Fed”
“They're not part of any broad measure of the money supply. They're part of what's called the monetary base.”
5/Yet these keystroke entries enabled banks to funnel more money into the economy in the form of trillions of dollars of credit. Despite the Fed’s protestations it was (and is) effectively “printing money.”
6/Monetary expansion and easy lending environment fueled asset gains across the board. Indeed the Fed’s implicit goal was (as now) to prop up the stock market. From 2012:
7/The results are in. 10 years later the economy has “recovered” yet the Fed is unable to unwind a bailout fueling an economic bubble of epic proportions. The vast size and impact of QE may (forever) limit how much and fast the Fed can act.
8/US household debt at $13.5T has exceeded 2008 levels.
(Non housing debt includes auto, credit cards, student loans)
(Non housing debt includes auto, credit cards, student loans)
9/Corporate debt is at an ATH, nearly doubled since the crisis. Malinvestment defines and will doom our economy.
10/Federal debt as % of GDP is at levels not seen since WW2. Poor monetary policy and the Fed’s persistent short sightedness has lead to growing unpayable longterm liabilities.
11/The Fed bubble has given us uncontrolled housing, education, and healthcare costs. Job mobility is limited by poor wage growth and educational debt.
12/Fed policy now treats financial stability on equal footing to monetary policy, performs as an economic actor on par with the state, sans oversight and uses the public as its ultimate backstop. The 2008 crisis will likely cost taxpayers $14T.
13/The Fed has corrupted the natural ebb and flow of markets - instead of serving the needs of producers and consumers, markets reward rent seekers and punish savers.
14/Bitcoin provides us with a template and path to resolve the Federal Reserve’s failed fiat policies & allow public’s proof of work to shape the economy through individual action unsullied by committee group think.
15/Bitcoin is a founding document expressing monetary free speech. It is a monetary bill of rights, a break from the past, simplifies global economic constructs, reduces systemic fragility through a long term, low time preference math based system.
16/An economic sell wall is coming. In hindsight the instigating event will be obvious, but then too late. Trillions in value will be vaporized in a desperate attempt to deleverage, fighting for the few real dollars in the system. And many will ask why didn’t I get Bitcoin?
