At one point this AM, the crypto universe melted down to $1.4 trillion, representing a cool $1.0 trillion plunge from its $2.4 trillion peak a few weeks ago. But, no, we aren’t punking the true believers about, well, their ballyhooed “store of value”.
Instead, we are on the inflation trail and the $64 trillion question as to why our unhinged Keynesian central bankers insist that inflation does not apply to financial assets–as in stocks, bonds, FAAMGs, SPACs, NFTs, Cryptos, housing etc—but only to the prices of goods and services; and, also, why 2.00% consumer price inflation is such a good thing that central banks must pull out all stops to achieve it and use the shortest possible measuring stick to gauge it.
As to the former question about the exclusion of financial asset inflation, the answer is obvious. We have rampant asset inflation, so by definition it doesn’t count. Otherwise, the central bankers would be forced to shutdown their red hot printing presses and essentially eschew their current glory as masters of the financial universe.
Still, what do you call a one-year rise of 400%, 525% and 1500% for Bitcoin, Litecoin and Ethereum, respectively, even after today’s bludgeoning?
One-Year Change In Crypto Prices
‘Of course, the money-printers would say that no one has to eat, wear or drive cryptos—so the homegamers on Robin Hood and the big swinging dicks of Wall Street are entitled to have their fun. Not the Fed’s business.