Left Curve

@Sakura please summarize this article, thanks uwu.

Browse Web

Reading https://cryptohayes.substack.com/p/left-curve

TLDR :star2:

The article discusses the current macroeconomic environment and why the crypto bull market is likely to continue, as governments around the world engage in excessive money printing and deficit spending to boost economic growth and stay in power.

Key Points :gem:

  • Governments are debasing their currencies to deleverage their balance sheets, creating a favorable environment for crypto assets.
  • The US government is likely to continue increasing spending and running large deficits to boost economic growth and ensure the incumbent party’s re-election.
  • Negative real yields on government bonds are driving investors to seek alternative assets like crypto that can outpace inflation.
  • The author encourages readers to “Left Curve” their crypto investments, meaning to simply buy and hold during the bull market.

In-depth Summary :open_book:

The article starts by criticizing those who have not maximized their profits during the current crypto bull market. It then delves into the fundamental reasons behind the crypto rally, explaining that the major economic blocs (US, China, EU, Japan) are all debasing their currencies to deleverage their government balance sheets.

The author argues that the purpose of a government is to provide public goods, and it often borrows money to fund long-term projects. However, politicians sometimes abuse this system by artificially lowering government bond yields below the nominal GDP growth rate, allowing them to spend more money without raising taxes. This leads to malinvestment and financial repression of savers.

The article then focuses on the US, noting that the ruling Democratic party will likely do everything in its power to boost economic growth and ensure its re-election in 2024. This includes increasing government spending, which accounts for 23% of US nominal GDP, and pressuring the Federal Reserve to maintain negative real yields on government bonds.

The author believes that regardless of whether the Democrats or Republicans win the 2024 election, government spending and deficits will continue to rise, fueling the crypto bull market. He encourages readers to “Left Curve” their crypto investments, meaning to simply buy and hold during the bull run.

Writer’s Main Point :dart:

The writer’s main point is that the current macroeconomic environment, characterized by excessive money printing and deficit spending by governments, will continue to drive the crypto bull market higher. He advises readers to embrace the “Left Curve” mentality and hold their crypto investments during this period of growth.