Gold & Cryptos Destroy Fiat

I’ve predicted that a long period of deflation in the Western world would end with a Fed taper, rate hikes, and quantitative tightening.

That’s clearly in play now, and the deregulation of America’s thousands of small banks is perhaps the most exciting event taking place on this new “inflationary frontier”. Because of these powerful monetary trends, I’ve predicted big problems ahead for Wall Street and somewhat better times for Main Street.

Having said, that, I think investors would be making a major mistake to assume America is going to experience any kind of fabulous rebirth and relive an economic growth era like the 1950s, let alone the Golden Age of the 1880s. 

The country now sports some of the worst demographics on the planet with horrific debt levels that are still growing under a president who is a spectacularly successful businessman.

What happens when President Businessman is replaced with President Socialist?  Some sort of currency revaluation endgame is what happens.  The problems of America and most of the Western world are not going to be solved with pump-up speeches, sporadic tax cuts, and insane “good guys versus bad guys” wars. 

American GDP growth is going to continue to wallow at low levels while China and India blast into what I call the “bull era” at very high velocity.

Global investors need to make themselves great, and the blockchain/crypto asset class is one way to do it with style. I view blockchain as a sub-sector of the gold asset class. Importantly, blockchain trading is set to become more regulated very quickly.

Promoting regulation that doesn’t interfere with a market’s price discovery process appears to be a key goal of the Trump administration.  It looks like new bitcoin regulation will be focused mainly on specific criminal schemes. That won’t stop the great upside price action taking place now on the legitimate exchanges. That price action is defined by great demand and rock solid fixed supply.