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The Compound and Friends cover image

The Magnificent 7 Is a Bubble

The Compound and Friends

NOTE

Speculative Activity and Inflation

Excess liquidity in the economy leads to speculative activity, such as the case with Bitcoin, which acts as an indicator of available liquidity. This excess liquidity, if not controlled, can cause a misallocation of resources, leading to inflation. It is crucial for the Fed to monitor and understand the origins of speculative activities as they can have inflationary impacts.

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