Bank of England goes barrrr

Bank of England is trying to prove Satoshi's Hypothesis about the central bank's unlimited printing power to damage the entire country.

https://twitter.com/documentingbtc/status/1379915656443875333

When the supply of money increases, the valuation of the currency decreases because there is a force of supply to increase the quantity of the money without possibly pushing the demand higher. It is an artificial pushing demand without the actual demand.

Now, they start the self-feeding loop to buy their own bonds with higher interest returns to retain investors. It will become a downward spiral that harder to get out as the country because the monetary policy becomes short-term incentives program and harder to weather the uncertainty of the future.

Its currency will become even weaker since the power of spending will erode further if the economy does not get better.

Even if the economy gets better, their growth has to outpace the speed of money printing which is more challenging for a country to chase such crazy change without sacrificing something else, said the environment.

https://twitter.com/Parody_PM/status/1579751540759592961

The financial system will never be stable after all. It will become more volatile than cryptocurrencies because the country will madly chase growth to recover their previous spending losses. The investment invovles higher rewards but more risky financial leverage products.

https://twitter.com/GeorgeWParker/status/1579769010152873987

The whole situation of England's economy will have huge consequences.

https://twitter.com/WallStreetSilv/status/1579846253822636032

The businesses will force to bankruptcy because banks can no longer able to bail them out, and citizens will hold ever weaker money with their power of spending reduced to very little to acquire food and necessities.

And when a country's currency is unstable, its money becomes unsounded and cannot be used for trading because every time people use it, it becomes less than before. 

It pushes people to spend away money to acquire goods because the good has a more stable valuation than the money does. Then the cost of goods will go even higher with or without inflation.

Until the currency of such a country becomes worthless, citizens will suffer more, and the whole economy is due to reset.

There is a possibility that Bank of England at some point, will have Bitcoin as a reserve currency.

But there is a spinning around. During the Asian Financial Crisis of 1997, Hong Kong was buying everything it could to save its own economy at the time.

But it worked because China took over Hong Kong later and became the economic powerhouse of #2 later.

Who could do that for England?

https://twitter.com/PeterSchiff/status/1579790882894929920

Even Peter Schiff pointed out the major concern about their bond market.

We will see how it will develop in 2023.