Ep 57: Balaji Srinivasan on the Origins & Severity of the Bank Crisis, the Future of Bitcoin, and "Make America States Again"
Joe Lonsdale: American Optimist
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The Inflation Shock and the Failure of FRB
Powell: Nobody expected the inflation shock. The other version is the banks thought that the government was basically lying. They were like, well, look, we're getting killed on inflation. What's the best we can do? I guess we'll have to be investing it for 10 years,. But at least we can get 1% on this 10 year bond or one and a half. So let's do that. And then suddenly they're getting a much, much better rate in like six months and a month, eight months. In a sense, what happened was the government just fooled all of these institutions. It's like Stalin killing his most loyal communist. Powell killed his most loyal capitalist
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