War Drives the Crypto Boom

The world has become an incredibly unsafe place for everyone. [Gilder's Daily Prophecy] March 01, 2022 [UNSUBSCRIBE]( | [ARCHIVES]( Former CIA Advisor: “They are LYING about inflation!” Despite the circus of distractions you’re hearing on the news... The lies and the misdirections... There’s one former CIA and Pentagon insider is revealing the TRUTH behind the inflation numbers in America. A story so shocking and so powerful that it could bring the Biden Administration to its knees. You might have known something strange was going on in America, but I can guarantee you weren't expecting this. [Click here to see the story the mainstream news is trying to bury.]( If there’s anything you’ve missed as part of your membership to Gilder's Daily Prophecy, make sure you check out our website where you can find archives, updates, and everything else that's included in your subscription. You can access it by [clicking here now](. War Drives the Crypto Boom [Jeffrey Tucker]Dear Daily Prophecy Reader, Were the “best and brightest” ever really attracted to government work? Maybe in the 1950s or something. Certainly not now. It’s daily astonishing just how dense decision makers are, almost like they understand nothing about how the world works. It’s all messaging all the time, with no real thought, clarity, or understanding. That’s the only real explanation I have for how it is that the US has so bungled its response to the Russia/Ukraine war. Looking for some way to show resolve, the Biden administration announced sanctions. But pundits were quick to point out that they were few and mostly toothless and wouldn’t make much difference, by which people mean that they were not terribly painful. And it was true: powerful institutions (IMF, World Bank, State Department, Fed, etc.) were initially loath to touch payment systems, for fear of the consequences. Less than one week later, and mostly in response to political pressure, the whole range of economic war was on the table, including freezing assets and blocking major banks from international exchange markets. The press got on board and started screaming and crying about the need to cut off the whole of Russian from the SWIFT system of international exchange. That’s when the trouble really began. Russians rushed to the ATMs to pull out as much money as possible. The US threatened asset confiscations, so the yachts of oligarchs were suddenly on the move. The ruble crashed further. The stock market went into total meltdown to the point that the central bank closed it completely. Lines at ATMs in Russia formed and circled around city blocks. Foreign investors and trading partners flew into panic. Among the institutions that had to pivot completely: the Fed itself. Inflator in Chief to the Rescue The following sentences from a Bloomberg article sent whole sectors of the financial world into instant upheaval: The decision to [exclude]( various Russian lenders from the SWIFT messaging system could result in missed payments and giant overdrafts within the international banking system and spur monetary authorities to reactivate daily operations to supply the market with dollars, according to Credit Suisse Group AG strategist Zoltan Pozsar. It gets worse: Drawing comparisons with the 2008 Lehman Brothers Holdings Inc. failure and the pandemic-related market seizures of March 2020, Pozsar warns that “central banks should stand ready to make markets on Monday again.” Consider the near-miracle of the last two years that financial markets and money access in general has not been wholly disrupted. It’s actually remarkable given that nearly every government in the entire world wrecked their economies within the same month. It was sheer madness. And yet, the electronic payments system, check clearing, remittances, and payments in general kept working. A major reason was simply the Fed itself, which cranked up the printing presses as never before. Other central banks followed. Today we live with the results of an epic global inflation that is dramatically reducing the purchasing power of every existing currency. Until the war broke out, the Fed appeared to have the intention of gradually raising interest rates 7 times over the course of 2022. The idea was to dial back inflationary pressures while not tanking the macroeconomy before the midterm elections. That would be a delicate ballet, and nearly impossible to pull off. In fact, I seriously doubt that there is any way to avoid an inflationary recession eventually. The war plus financial sanctions doesn’t just add a wrinkle to this plan. It blows it up completely. That’s what talk of 2008 does, especially when it comes from a credible source. Jerome Powell will very likely delay the planned rate increases or dial them back so substantially that they become purely cosmetic. The reason: it has changed focus to once again becoming the supplier of liquidity to the global economy in the event of a full-on freeze. Put it this way: when you have superpowers battling it out over access to international exchange, it doesn’t seem like the ideal time to implement some textbook-style dis-inflationary measures. What that means for the rest of us is not good news. “Could Outpace Bitcoin In 2022” – The Motley Fool Bitcoin is on a tear. At its peak, a $2,500 investment at its March 2020 lows would’ve been worth as much as $31,150. And that explosive growth doesn’t appear to be stopping any time soon… Fortune Magazine reports Bitcoin is set to hit $100,000 this year. But as great as that is, one hidden crypto is poised to run even higher… One hedge fund expert says it could overtake Bitcoin as the most valuable crypto in 2022. [Click here now for the full story](. Crypto Boom If you watch crypto markets carefully you know this: Bitcoin and the entire sector took dramatic leaps. [chart] And why might this be? Because, as Jamie Dimon pointed out about closing SWIFT, money will find a way. Peer-to-peer exchange is exactly that way. For most American businesses and individuals suddenly to shift from bank exchange to crypto exchange sounds too risky and too complicated. But the world of Russian business is different. Many of the elites have prepared for this day for a very long time. The demand for blockchain money transfers wasn’t exclusive from Russia. It hit the whole world as it became obvious that the US would wage total economic war. Suddenly there was a crying need for precisely the system that was only invented in 2009: a system of exchange that does not rely on government-regulated third-party intermediaries. So therein lies the incredible irony. It truly appears that no one in government could have anticipated the unbearably obvious: any attempt to interfere fundamentally with the SWIFT system would give cryptocurrency a massive boost, not just this week but for many years to come. How is it that the masters of finance did not anticipate this? New Forms of Warfare Nothing is as it seems. This might seem like a monetary/financial war on Russia. It is actually another test of Western governments of a power to be used against their own citizens. Remember only recently when the Canadian government used the banking system as a means of shutting down the truckers protesting government mandated vaccines and other preposterous measures? Well, it was a nice trial run for how governments in general seek to manage their populations. You don’t need guns. You don’t need to break down doors. You don’t even need jails. You only need to push a button, freeze assets, and otherwise deny people income. Most anyone can be out of house and home, plus groceries, starving on the streets, in a matter of weeks. That’s the raw reality. What is happening to Russians today (and these measures directly affect people far more than government) can easily happen to anyone right here at home. What’s being inaugurated and tested in these months is a tactic for population and political control via mediated financial and monetary systems. So think of this. We’ve got roaring inflation. We’ve got real-time examples of capital controls, asset seizures, and frozen bank accounts. We’ve got a banking system increasingly under the control of central managers who are using it for political purposes. And we are watching this be deployed on a global basis. No one should wonder why there’s such a strong interest in crypto and gold. The world has become an incredibly unsafe place for everyone. Regards, [Jeffrey Tucker] Jeffrey Tucker 1992 Book Reveals: The Next Big Tech Obsession Silicon Valley insiders have spent the last 30 years passing a “secret playbook” around their inner circles. This “secret playbook” ([which I reveal right here]( has pointed the world’s biggest tech moguls to major breakthroughs that have helped disrupt entire industries... Now, for the first time ever, tech billionaires are set to reveal the “final chapter” of this mysterious book. And I’ve secured you special access to a full rundown of this little-known breakthrough. [>> Click here now for the full story <<]( [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. 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