World's debt is over $300 trillion

1} World's debt is over $300 trillion and the government wants the burden to be unlimited. And that is a problem

Governments want to continue to pile on more debt. The debt is obligated to be repaid. It can be paid either honestly through higher taxes or dishonestly through higher prices, that ends up creating inflation to monetize the debt

When we look at this specific solution, it appears that they're just kicking the can down the road. If we look at the debt to GDP ratio in the United States, it is significantly higher at 129% of the GDP

On top of that, the government has guaranteed all the bank accounts, all the pensions and student loans. All these commitments are unfunded liabilities

High trade deficits: US has enormous trade deficits which adds another trillion plus per year to borrow as a nation

Added Monetary supply: The Fed created inflation, they did it to make the rates low because it had to print money to buy all the bonds to suppress the rates

2} Conventional wisdom says inflation is good, in moderation it encourages spending 

However, too much is bad as it completely devalues, destroys people's savings

There's an issue with that, The idea that a little bit of inflation is good. You look at the inflation, at the consequences of inflation, and blame it on people not spending enough,

When people are actually doing the rational thing....

Inflation causes an unsustainable boom, then comes the recession. And then now a lot of people lose their jobs and they don't have enough money to go out and spend frivolously. So they save for the future.

The future is uncertain. It's natural and smart that you stop spending money on the frivolous thing that you used to spend, and you save it for the future.

You invest in something else, you get a new job, and then once you've recovered, you start spending more. This is very sane and very good, and it's the way to recovery

3} But essentially, the politicians have used this as a justification for more inflation, by printing money to boost recovery

This is what happened during COVID with freebies sent to people to keep demand from collapsing

Once the government gets down the path of spending money to solve its problems, then every problem looks like it can be solved by more money printing and inflation

The global cryptocurrency market cap today: $1.09 Trillion

Daily change: 0.02% | Yearly change: 12.55% 

Bitcoin (BTC) is the largest cryptocurrency with a market cap of $518 Billion.

Weekly change: 0.02% | YTD change: 61.97%

Another important metric is Bitcoin dominance which can be used as a rough indicator of the relative strength of Bitcoin versus other cryptocurrencies. A high Bitcoin dominance means that Bitcoin has a large market share and is potentially more influential in the overall cryptocurrency market and vice-versa.

Bitcoin dominance: Current Year: 49.12% | Last year (Sep 2022): 39.40%

The market sentiment has gone back to fear levels now expecting “Sell Off” this month

Note: The data used is based on metrics like Volatility, Surveys, Bitcoin Dominance, Social and Google Trends. Source: Coinstats

Let's have a look at Ethereum supply changes post its merge to a PoS blockchain from PoW.

The significance of the chart - understand how the supply of Ethereum is decreasing post the merge, which means “deflationary economics” for the Blockchain

Supply change since merge POS -291,696 ETH

The graph highlights POS issuance since the merge. Impressive numbers, look super bullish for ETH long term given the supply of ETH is not growing as before

Ether Turns Inflationary as Network Revenue Plunges to 9-Month Low The decline in activity in the network is partly because of the adoption of layer 2 networks, and the trend will continue in the near term, according to IntoTheBlock.

Sony Unveils Plans To Develop Blockchain Sony Network Communications and Startale Labs To Build Infrastructure Supporting Sony’s Web3 Ambitions

And now the funny part,

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research