The US #DEBT bomb has finally been ignited.
People are sound asleep because fiscal conservatives have been warning about this for decades.
This time is different.
12 month interest exploding to over $700 billion, yields still sky high.
How will this get paid?
Anser below.
By issuing more debt!
And what will that do to the bond market?
Well, it will increase the offer side!
And what will that do to the yields?
Well, they will go higher!
And what will that do to interest on debt?
Well, it will go higher!
And how will this get paid?
Go back to line 1
The soft paper dollar will inflate until its again sizeably backed by hard assets.
Gold, Oil, Bitcoin.
Prices of these three will likely go through the roof.
A great point is made here by @taureau_21 but he hasn't grasped the full implications of what he said in my opinion.
Zero price impact platforms like $GMX open themselves up for price manipulation exploits and it is why $GNS has moved away from this model several months ago.
A 🧵
GMX allows you to long $ETH with 52 million dollars whilst not moving the price of $ETH at all. It then also allows you to short $ETH with $20 million again with no price impact.
So a big $ETH whale who is familiar with $GMX can simply buy $50M of ETH via GMX, then go to a couple of the big CEXes like @binance and @FTX_Official and buy up say $40M of ETH on these exchanges and move the price roughly 2% up?
The #RealYield phenomenon. Can the narrative ignite a new bull market or will it fade?
Let's explore.
After a severe bear market, triggered by ponzi tokenomics that took down the 40 billion dollar sandcastle that was $LUNA, the market is seeking fundamental value instead of chasing promises of economic perpetuum mobiles where you get stuck holding the bag once the music stops.
This sentiment is perfectly relayed in @elliotrades recent video where he reviewed his own mistakes during the last bull market and the lessons he takes from them.