The money printer tarps are getting dusted.
What a week it has been. I hope you all find some time to relax this weekend and prepare for more fireworks in the short to medium-term because it seems pretty clear that the volatility is not over. We're getting a bit of a reprieve today as Fed officials have come out to quell markets. Most notably from Minneapolis Fed President Neel "There's Infinite Cash at the Federal Reserve" Kashkari who reassured markets earlier today by saying the Fed "has tools to provide more liquidity" and Boston Fed President Susan Collins who reassured the Financial Times that the Fed will most definitely be prepared to stabilize markets should that be necessary.
Equities markets rebounded today with every major index gaining more than 1.5%. The Nasdaq, which has led the way lower was up more than 2.0%. However, the elephant in the room are Treasury yields, which remain materially higher than they started the week and ended the day higher despite the comments coming from Federal Reserve officials across the country.
There are actors out there who are actively dumping treasuries right now. It could be China. It could be hedge funds. It could be Europe. It could be Japan. In all likelihood it's a combination of all of these actors plus some. The world is calling bullshit on the reliability of US Treasuries as a global reserve asset and the market for those treasuries is trading accordingly.
It seems like the Federal Reserve has taken notice of this and is preparing the ship to unload the money printer in an attempt to bring yields back down. When you consider the gravity of the situation as it stands today, whenever they do ultimately step in to support the market they're likely going to need to unleash a wave of liquidity that is at least on par with the COVID stimulus. I will not be surprised if the market needs more.
Bitcoin will be a massive beneficiary of any actions taken by the Federal Reserve. I believe the market is already beginning to recognize this as bitcoin has reclaimed $84,000 after trading at $74,000 earlier this week.
In a world of unfettered money printing that is demanded by a global economy built on the debt of the United States federal government, which is currently kicking the hornets nest, a globally distributed peer-to-peer digital cash system that is politically neutral and impossible to centrally control is arguably the most valuable asset of all.
This is not priced in yet.
This week's market turbulence isn't a bug—it's a feature. Tom Luongo argued convincingly that the 9-12% market correction we're witnessing is both healthy and strategic, allowing for necessary liquidation of malinvestment across overvalued sectors. The Trump administration appears to be deliberately allowing this correction rather than intervening, understanding that capital needs to be reallocated from bloated tech valuations toward undervalued commodities and production. As Luongo pointed out:
"We are so behind the curve on exploration and production upstream across the entire commodity space, which has been capital starved during this ridiculous, ridiculous financialization of our economy." - Tom Luongo
I believe this approach also explains Treasury Secretary Scott Bessent's media blitz. His appearances on Tucker Carlson and other platforms aren't just damage control—they're part of a coordinated effort to prepare Americans for this necessary reset while preventing panic. Luongo reminded us that 94% of the stock market is owned by just 8% of Americans, putting this correction in proper perspective. The administration appears to be executing a deliberate strategy: short-term market pain in exchange for sustainable economic realignment that benefits real production and infrastructure.
Check out the full podcast here for more on Europe's financial vulnerabilities, the end of LIBOR's impact, and the weaponization of Treasury holdings.
Inflation Drops to 2.4%, Below Expectations - via X
S&P 500 Volatility Matches Bitcoin's Wild Swings - via X
Trump to Cut Funding for Sanctuary Cities Nationwide - via X
Ross Ulbricht to Speak at Bitcoin Conference in Vegas - via X
IRS "DeFi Blockers" Rule has Been Nullified - via nobsbitcoin.com
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Final thought...
The Masters is much calmer than CNBC right now.
Enjoy your weekend, freaks.
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