US Fed is making Bitcoin great again

Local market was boosted by monthly market level index option expiry turnover and AUDUSD getting jammed up by collapsing USD. US Fed update follows the weak clueless strategy of keep doing what they were and hoping for something better. The central banks globally are lost in stimulus with no strategy of how to unwind till bubble’s burst. We have reached endless stimulus…or more to the point “Central Banks must be crazy!!!”. US Fed currency debasement has reached stupid level and that is driving Bitcoin to all time high. Do you have enough Gold? My guess is not enough!!!

Locally the job data was not linked to reality and MYEFO had nothing we did not already know. Job data looks massive as it’s just classification changes between part time to full time to unemployed to JobKeeper. In the land of the blind, one eyed man is king. In the land of the JobKeeper (i.e. JobFaker), everyone is employed. Reality is scarier than fantasy when you talk in alternative facts.

USD continues to free fall on the economic, pandemic and leadership mess. Vaccine and College vote confirmation has cleared pandemic and leadership risk in the medium to long term while uncertainty remains high in the short term. The economic mess is being held up by massive debt building up through fiscal and monetary stimulus. United Socialism of America will not be able to get off money printing for years to come and such the outlook for USD remains weak. USD has fallen below the support level of the down trend with US Fed coming up with a grand plan of repeating the same failed policies and expecting something better…basic definition of insanity!!! Risk remains that US Fed and stimulus plans don’t live up to expectations and USD bounces from oversold position on risk off trade. Despite short term volatility, the medium to long term outlook for USD remains weak on risk weighted macro basis.

Overnight US market started with more weak economic data and chatter that stimulus chats are happening before US Fed update was more of the same for years to come. DOW and Russell were slightly negative while S&P and NASDAQ slightly positive. Bonds and USD lower while Gold lead the commodities higher. We are seeing early issues in transport logistics with the vaccine while number of states are talking about lockdown ahead. Economy is fading and stimulus is being delayed while US Fed is out of ideas. Gold was the best sector by a margin while Industrials and Energy lead the falls.

Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!! Buckle up...it’s going to get bumpy!!!

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