What is Nostr?
Cykros
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2024-11-04 11:34:48

Cykros on Nostr: Worth noting that the immediate response to a bank run, and thus, a ...

Worth noting that the immediate response to a bank run, and thus, a deleveraging/deflationary event, is that the fiat price actually goes UP because the supply of broad money is reduced amid all of the defaults.

Of course, we can and likely should expect a bail out process from central banking and fiscal authorities, which would likely add even more liquidity to fill the hole.

But what I'm saying is that if you don't see this dynamic going in, you may be surprised to see a DIP in the price of fixed/limited supply assets such as gold, silver, and #Bitcoin. Best to understand what's going on, so you can retain the resolve to #HODL, and perhaps even capitalize on that dip in the short term.

Bank runs are a symptom of the diseased state of a centrally controlled monetary system, not of a free banking environment.

- Ron Paul
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