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Balaji Srinivasan on his $1M bet, Financial Crisis 2.0, Digital Devaluation of USD, and What Comes Next

"Moment of Zen"

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The Fed Is All Powerful and Not Responsible for Anything

The entire thing that the reason that all these guys' portfolios are getting destroyed is that they made a bet on the long-term health of the US government by buying 10-year treasuries in 2021. That was the toxic waste. But that's just duration risk. My crypto went down 80 to 90%. And you're talking treasuries are down 15 to 20% on par value, but it's on a gigantic amount of money. They simultaneously have a mental model where the Fed is both all powerful and not responsible for anything. It's kind of their model because the Fed is the sun around which the entire system operates.

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