🫧 The Fed is inflating the bubble again, and capital flows into Bitcoin and Gold (Ray Dalio)

✦ The Fed is preparing to complete #QT and return to the printing press (#QE). Officially - a «technical measure», but Dalio considers it the beginning of a new cycle of debt easing and monetization.

✦ If the Fed’s balance sheet begins to grow against the background of a rate reduction, a record budget deficit and the growth of the stock market, it is not a salvation of the economy, but a pouring of gasoline into the overheated market.

✦ At the same time, the economy is not in recession:
• Indices at the maximums.
• Unemployment ~4%.
• Inflation is above the target.
• AI-actions are inflated to the point of madness.
That is, it’s not «QE for the sake of salvation», but QE in the midst of the bubble.

✦ According to the classics of the Great Debt Cycle, it looks like:
• A sharp increase in the supply of public debt.
• The Central Bank buys it out by printing money.
• The Treasury reduces the terms of bonds.
• And inflation is being ignored for the sake of elections and economic growth.

✦ Dalio believes that this is no longer just a technical step - it is the final stage of the cycle: stimulation, debt monetization and overheated markets.

✦ As in previous cycles, capital goes to limited assets: Gold, Bitcoin, etc.

Ray Dalio is a billionaire and founder of the world’s largest hedge fund Bridgewater Associates.

@Сryptoz ₿