In this episode, Nik Bhatia and TBL Research Associate Demian Schatt unpack how the Federal Reserve actually influences the financial system—and who it serves. They discuss what happens mechanically when the Fed changes rates, why bond market expectations matter more than policy statements, and how the entire credit system is structured to resist deflation. Nik shares insights on the origins of the 2% inflation target, the fragility of the banking system, and how Bitcoin fits into a world built on rolling debt and central bank intervention. The conversation also touches on Larry Lepard’s The Big Print and the growing call for sound money in an era of frequent financial crises.
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Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc
Creative Director Matthew Ball's Twitter: https://twitter.com/matthewrball
Researcher Demian Schatt's Twitter: https://x.com/demianschatt
Chapters:
00:05:10 Preventing Market Panic and Unemployment
00:10:24 The Debate on Sound Money vs. Credit System
00:15:40 The Inflation Target Dilemma
00:20:52 Understanding the Impact of Stock Prices on Financial Power
00:26:42 The Fed's Dual Stakeholders: Banks versus People
00:31:35 Bitcoin's Impact on the Credit System
00:37:01 Understanding Credit Creation and Treasury Bills
00:42:23 The Federal Reserve's Balance Sheet Dilemma
00:47:33 Understanding Bitcoin as a New Asset Class
The Bitcoin Layer and its guests do not provide investment advice.
