Daily Journal Starts now

Planning to begin a daily journal...  Recently I pulled the trigger buying a notable amount of Bitcoin at around $48k per coin at the end of 2021.  Now only few weeks into 2022 the price has dropped to just above $41k.  

I made this investment as a long term inflation hedge, but it's been painfully to watch a 20% price decine in a matter of weeks.  Well maybe I should just follow the plan and focus on the long term investment hedge.

The published US inflation rate in 2021 rose 6.8%.  However, the formula used to calculate this rate seems to provide a result far different from reality in my world.  Looking at home and auto prices here in Colorado, real inflation seems to have been more on par with 15%.  

The financial system also seems in disarray, over-leveraged with free government money and looks like a house of cards with high winds in the forecast.  The US Treasury overnight reverse repo agreements reached nearly $2 trillion on 12/31/21 a record.  Last summer I read how worried many were when the rate reached $600 billion.  Hedge funds, market makers, and big banks seem to have had another great year with massive profits and bonusus.  It makes sense that these same businesses are some of the biggest political doners.  Senators and Congressmen cost money, but the ROI can be mind-blowing.

Today was the 1 year anniversary of the attempted Trump coup of the United States.  It seems that neighbors continue to be more and more divided and states continue to pass laws in difiance of the federal law.

The radio today mentioned that 1/3 of republican voters continue to believe Trump won the 2020 election.  Many Americans continue to watch their unvaccinated friends and family members die after refusing vaccinatios.  Hospital staff look tired with no end in site.

With so many divides among citizens and what appears to be a broken Federal Government it seems a very serious time for the US financial and political systems.  With high inflation rates, historically must be raised to avoid a catastrophic downward spiral, but if rates are raised home values and stocks are sure to fall and crush the hopes of retirement for millions of aging Americans.  A fiscal tightening at the Federal level is also likely to expose a few over-leveraged and "Madoff" like financial firms as the gears begin to seize...  More likely in my opinion any Fed rate hikes will be too little, too late and inflation will continue to increase at a notable rate.  The agressive raising of interest rates seems like the initial pain to all make this politically unachievable.  

Let's see where reality takes us...