I think @arndxt_xo thesis is sharp and uncomfortable:

The U.S. has effectively moved onto an "S&P Standard."

In this modern feudalism, asset prices are the protected class (the Lords), while labor and the real economy function as the shock absorbers (the Vassals).

The system’s feedback loops have been rewired so that wage growth is punished as "inflationary," while asset price wobbles trigger immediate policy rescue.

Why this matters now:

— Volatility Suppression
Policy isn't designed to stop recessions; it's designed to stop disorderly asset repricing. This keeps the index stable but makes society brittle.

— The AI Paradox
As highlighted, the AI boom is currently benefiting hardware and supply chains first. For the numbers to work long-term, we may see massive labor compression, expanding margins while thinning the consumer base.

— The Crypto Hedge (and maybe why I am still bullish on crypto for long-term)
Amidst this "feudal" stagnation, the crypto market acts as the only distinct exit valve.

Last week, we witnessed significant shifts in institutional behavior:

- Visa settled nearly $3.5 billion in $USDC
- @SoFi launched a bank-issued stablecoin
- Bhutan held $1 billion in BTC.

These moves indicate that capital is constructing parallel financial pathways.

Long live Crypto and DeFi.

https://x.com/Eli5defi/status/2004417411672617098