Janet Yellen Head of the US Treasury photobombed with “Buy Bitcoin” sign

Today, as we reach the end of January 2021, the Fed is due to make some more statements about their monetary policy and the financial world is watching and waiting with baited breath. Will interest rates rise, fall or remain the same?

Those of us in cryptoland are also curious to hear Jerome Powell, the new doctor of doom, speak his prognosis. Maybe he’s not the real doctor of doom, but one way or the other markets are on the edge of their seats today. And it’s about to strike the witching hour of full moon in the next day or so. Get ready, it could be pumpkin time or “dumpkin” time, depending on the sentiment.

Janet Yellen photobombed buy BTC.jpg

It’s amazing how much the markets depend on sentiment, as opposed to fundamentals. Confidence is what runs the show, since the financial world is a confidence game. The masses have to be confident that the fiat paper or digital money is really worth what the government says it is. Sometimes confidence can falter in the blink of an eye. All fiat currencies in the history of the world have eventually faltered, crashed and burned.

Almost all, since we are still using the British Pound sterling, for what it’s worth. Still, the current legacy fiat currencies are all losing value of time. The dollar is only worth about 5% of what it was 100 years ago, in purchasing power. So it appears to be on the way out, even if we don’t realize it immediately. It helps to have along term view to see the overall trend.

Bitcoin, on the other hand, is on an overall uptrend. Which is why banks and central treasuries are probably seeing it as competition. Here, in today’s post, is a picture that has been doing the rounds recently. It’s not my own and I hope I don’t get into trouble for displaying it, but I am using it for educational purposes here, and as a joke. On the central banks.

Janet Yellen walked out of her job as head of the Fed to walk straight into the USA government as head of the treasury. That’s how in bed they are as financial institutions. The revolving door didn’t have to turn too far for this move to occur, since the Fed and the Treasury are already joined at the hip, so to speak.

Well, when Yellen became Treasury secretary, some unknown – yet now heroic – staff member pulled a photobomb, as it’s called, by upstaging a photo of Madam Secretary with a scribbled sign saying “Buy Bitcoin”. What a legend. That guy should be made famous. He already is among us Bitcoin hodlers, whomever he may be.

But obviously Yellen and the centralized banksters, Fedsters and government departments are less than impressed. They don’t like the competition from something they can’t control. So Yellen is now salty over Bitcoin and wants to regulate it some more. Let’s see if she can get that right. Maybe in USA alone, but not globally. Miners are carrying on mining bitcoin all over the planet in numerous nations, so it may leave one only to pop up in another, which is the beauty of the decentralized system.

Anyway, this sign is my meme of the month, so I wanted to share it here. Please don’t rebuke me for using the pic. It’s just too funny to ignore. I give full credit to the source of the pic, whomever they may be. It just seems appropriate today, with the Fed about to declare their position on interest rates and whatever else Modern Monetary Theory means today.

Traders will want to know if lending is still so cheap, so that they can borrow more and use it to buy bitcoin by the billion. We need to be careful that not too much of this big time whale buying of bitcoin is not done with borrowed money because the interest rates just need to move fractionally against you and your bubble could burst overnight.

Not that Grayscale and the other whale institutions buy their bitcoin with borrowed money...do they? But some other chancers might well do so, in this greedy market of opportunists and confidence men. We will find out today how the Fed wishes to move the market, so get ready for some fireworks...or not.

Powell is a rather dry chap, like any banker, so we may just see more of the same, with rock bottom interest rates, near zero, providing free money for whales to buy more bitcoin while the middle class have to grind away at the trading exchanges, making a few scalps and swing trades. Or just hodl and let bitcoin do the heavy lifting in the current bull market this year. It’s moon or bust.

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