The British Pound Is Plunging, And No One Knows Why
The British pound and other Western currencies including the euro are plunging Friday, and no one quite knows why. Here's one possible explanation!
Ah, if it’s not the long overdue rewards for our longest range bets.
Lol.
Although no one in the online financial media seems certain as to why the British pound (and some other major fiats) are plunging today in world markets, the Pre-World War Jitters Theory I advanced in the other day’s premium newsletter dispatch is growing on me as a possible cause — if not the only cause — of this rapid market deterioration in elite-run slippery fiats.
If cryptocurrency can simply hold value against this unexpected slide in the British pound, it will gain credibility in the broader currency community.
As I wrote in the newsletter, to excerpt myself here if I may…
I've waited too long already not to enjoy the feast when it arrives.
Bought some more LTC this week - Litecoin - because even though it's down quite a lot over the last year, I still believe in the crypto sector, and I want proper exposure to the best of breed cryptos, not merely Bitcoin itself.
Consider the macro...
Russia is in chaos, they're mobilizing their armed forces. Big protests against that mobilization already breaking out over there because they know they will lose a lot of people.
Some formerly in the US military are reportedly getting letters from the DoD saying standby for deployment.
China is in even worse chaos than Russia, drones telling people to remain at home, daily temperature checks, nightmare stuff realized.
If world war starts up - certainly Ukraine turning worse for Russia and Putin's disastrous ratcheting up of the rhetoric and his nuclear threats don't help things - then the national currencies take a tumble, in my view.
War bad for statist currencies, not good.
Everything becomes uncertain, inflation hasn't been quelled and in an end times kind of war people are going to be even less inclined to show up to the office or the warehouse - unless they are paid very handsomely, which drives up inflation even further.
A nation struck by world war probably looks a lot like early 2020: people at home, distant, yet consuming content and data online. Watching TV. Feeling dislocated or thrown to the fringes, as military defense priorities will rapidly take center stage. The only exciting economic game left in town in such a dystopia will be the 24/7 always open, lightly regulated cryptocurrency markets.
Whatever the cause, interesting times…
To see the major fiats suddenly slide by multi-percentage points, ah, perhaps FULCRUM was never wrong, perhaps our macro was always just a little slower to realize than we had anticipated. But not financial or strategic advice of any kind, and play wisely with the fiats and the cryptos, if you do at all.
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