On Great Floods and Bursting Bubbles

The Great Flood began in 1987 following Black Monday.

It was triggered by Alan Greenspan.

Two months after his confirmation Greenspan said immediately following the 1987 stock market crash that the Fed "affirmed today its readiness to serve as a source of liquidity to support the economic and financial system".

The flooding continued and picked up pace in 2008 when Ben Bernanke started flooding the market again with USD liquidity.

According to Ben Bernanke, expansion of the Fed balance sheet means the Fed is electronically creating money, necessary "because our economy is very weak and inflation is very low. When the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation." -wiki

This continued unabated until at least 2013. I don't know if it's still continuing but I can tell you the unintended consequences as the water recedes a bit are ASTOUNDING!

These flood waters were released around the world over 3 decades, slipping into all the little nooks and crannies, keeping pennies in peoples' pockets while wiping out some who didn't see it coming and amplifying the wealth of those who did. The earliest benefactor's made up about 1% at the time their bubble began to burst and spill it's "fluidity" upon the rest of the world.

The image below doesn't represent a chart of a bubble bursting, it's a chart showing how we can benefit from the flood waters of a bubble that's already burst and nobody knows for sure which of the waves we're currently looking at. There's a tsunami rolling in and it has fiat written all over it. (Not the car.)

This is not the End. I believe, based on the amount of money that was injected for 30 years to fuel it, that this is just the beginning. Money will flow to where it's required, that much is true. It's also not out of control, it's beyond control.

The flood did cause a lot of damage and that damage has been done. The landscape has been altered significantly and the flood waters are only just starting to recede.

Now we're at the beginning stages of looking around and seeing all of the unexpected ideas that have taken root while so many are still standing around trying to blame someone for a Flood that they refuse to acknowledge even exists that has actually already happened.

We're witnessing fallout, not impending doom. That's not to say it still isn't going to feel like impending doom for the vast majority who still haven't become aware of cryptocurrency and blockchain solutions, it very likely will.

You see I stopped giving a shit about Fed Policy around April 2013 and became interested in cryptocurrency. Since that time I have watched and participated with utter fascination. I spent much of 2015 genuinely considering the concept of abundance and all that that entails. I've redefined and reconsidered a lot of things during the past 5 years. Including money. Thank you Nick Szabo for helping me re-learn.

As I view the entirety of that landscape sitting here tonight and witness things I never expected to see in my lifetime just 5 years ago bloom before my eyes, I can't help but feel really good about how we're cleaning up this mess. It's already begun.

I find it easy to be grateful not only to the Satoshi Nakamoto's and Vitalik Buterin's of the world but also to the old white guys who helped make it happen, even if we still don't know who drowned or survived. The market is still working that one out. 😏

Thank you. Thank you. Thank you.