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Why The FED Can't Save Us…Again

It's HARD, but you want to keep up with what's happening in today's economy.

Especially keeping up with all things crypto, stocks, and general global news.

I get it.

Let's dive into the week.🧵

Spoiler: The FED can't save us this time, here's why.

In this week’s report:

- Markets expect the FED to save us. It won't happen, and here's why. - European authorities want an eye on the Ethereum blockchain while

Chinese Regulators consider allowing the trade of crypto in Hong Kong - Ethereum addresses hit ATH

- Global escalation continues. Rumoring more economic danger ahead. - Dow Jones Industrial Average (US30) price analysis. - Bitcoin price analysis.

So first, why exactly can't the FED save us?

-The FED

Indisputably stock markets have proven to be a lagging indicator of the global economic situation.

They are not the cause of an economic crisis but rather a delayed symptom of a problem that long predated the stock crash.

We have seen quite a big crash in stocks since November 2021. This means the problem predated November, the problem is rooted deep in our global economy.

Part of this problem is the FEDs historical ability to perform Quantitative Easing (QE) whenever it appealed to them.

Unfortunately this mess was completely avoidable, and FED chairman Powell and his colleagues surely knew this to be the inevitable outcome of their actions.

They knew that they were creating a massive financial bubble and that when they raised rates that bubble would collapse.

Yet, they kept expanding the bubble, no one with half a brain and a little bit of logical thinking should unironically claim that the central bankers were “blind” or ignorant. This is a long thought and engineered crash on many levels., not the accidental crash we wish it to be.

If they return to QE then an inflationary calamity ensues and just moves it up to the next generation. In order to save our economy they win inevitably have to hurt the economy and the people.

A planned implosion of the economy to provide the

government with a full reset? For what? Who knows.

But it surely doesn't look sweet for the lower-class population of the west, since they will be most affected by the calamity caused by the blindly 'trusted' officials.

- Cryptocurrency Regulation

On the note of the incompetency of our 'trusted' officials, European authorities have voiced their desire to implement automated software to monitor the on-chain activity on the Ethereum blockchain.

The EU officials stated their project named the 'study on Embedded SUpervision of Decentralised Finance',“ will seek to benefit from the open nature of transaction data on the Ethereum blockchain, which is the biggest settlement platform of DeFi protocols...

Its main focus will be on automated supervisory data gathering directly from the blockchain to test the technological capabilities for supervisory monitoring of real-time DeFi activity.”

Since the ETH merge in which Ethereum consensus switched from a Proof of Work network into a Proof of Stake network, Ethereum already gave up much of its guarantee of decentralized security.

Add onto this a governmental eye on all the transactions on the network. We have a slowly deteriorating 'decentralized' network that is undoubtedly slowly turning into a centralized governmentally curated entity.

On another note, Hong Kong regulators are considering allowing exchanges and other intermediaries to sell virtual assets to retail investors directly.

It also reassured businesses that the city’s official stance on cryptocurrencies is separate from mainland China.

Continuing with Ethereum as our topic of conversation, The Ethereum network just saw its biggest day of growth so far in 2022.

The network's total number of wallet addresses hit a fresh all-time high over the weekend (Fig. 1).

Usually, a large spike in Ethereum wallet addresses created predates a strong bullish rally, whether this will be the case this time is yet to be seen.

Nonetheless, a good sign for network adoption.

-Global Escelation

Russia has completely cut off gas supplies to Europe, which is 40% of all EU energy resources

Who really is the culprit of this? That seems like something to debate about, self-destruction doesn't seem too far-fetched currently

Call it a conspiracy...

Oil supplies are also in decline for the EU government has pledged to cut what’s left of Russian oil imports by the end of the year

Stress on the global supply chain is imminent as producers of goods in EU will have to cut down on energy expenditure, AKA less production of goods

Vladimir Putin is set to meet with China’s Xi Jinping and the nature of the conference is not clear.

China and Russia have immense mutual interest, if they do band together a new global superpower has indisputably formed.

My problem is as follows. US officials have repeatedly admitted the war is unwinnable for the west, but they also refuse to go into peace talks with Putin, so what exactly is the game plan?

- US30 // DJIA

I stated last week: "While the major indexes continuing lower is still more likely than not, countertrend rallies tend to come once the index reaches a high level of extension below key moving averages in a bear market."

And here we have it.

Since I wrote these quotes last week we have seen a rally of over 7% in the US30 / stockmarket

We are getting close to the top of the channel, which means people will begin to get cautious one more soon.

Finally, BTC

Compared to the stock market bitcoin has shown immense stability.

Holders aren't willing to let the price slip but if it does, it slips QUICK.

BTC is still in a descending triangle with a final target of 9-14k

As I stated last week, a breakout to the upside is possible with the right global market conditions, but it is certainly nothing to bet the house on for BTC.

That's it for this week though lads.

Cheers!

This post is based on this twitter thread.

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