The Fed’s likely juicing things again already (and more about bitcoin futures)

Into the weekend we go and a couple notes for you.

First, a correction and some additional commentary about my BRR Bitcoin futures trade. BRR is on the CME, not the CBOE. If you can’t figure out how to buy the BRR bitcoin futures in your stock brokerage account, you should call your broker. Additional paper work is probably required. That said, there’s this:

Subscriber in chat room: If Cody is talking about 5, 10, 20, 50 year time frames on a potential investment, why the interest in buying futures when you have the advantage of being able to buy the actual investment? Cody makes it seem like for him it is a necessity, not a preference. Of all, Bitcoin is the easiest to acquire, Coinbase although not the cheapest or carry the most options, is so simple with their app. Am I missing something?! a 2 month investment and rollover just seems unnecessarily complex.

Cody: This is the somewhat a correct take, thanks Jack. That said, there’s still the risk that something happens to your Coinbase account, unlike with your stock brokerage account.

Perhaps more importantly, a note about the markets.

I have a new working theory that the Fed has been already been secretly pumping a trillion dollars or so into the economy using some of the levers they and Congress created for themselves in all those “emergency measures” from the 2008 crisis. Might help explain why just about every asset class in the world, from stocks to oil to bitcoin etc, have been on fire this year. It’s not about cutting rates — they’ve got at least a dozen other ways of pumping liquidity these days from QE variations to even more complex tricks. Trump wants the Fed to pump even more money into the economy and I think they have secretly been doing that anyway and he and his economic team know that. Remember that much of what any politician says in public is for gamesmanship, not because they mean it.

Not that any of this means that we should suddenly become bearish of course. You guys know that I’ve long explained that we are riding a Bubble-Blowing Bull Market fueled by the Federal Reserve / Republic Democrat Regime policies. This is more of the same.

Also remember my working playbook for this is that when the Federal Reserve finally, at some point in the next two or three years, actually cuts rates, I’ll likely sell into that pop and maybe even get bearish/short-ish.

See you next week. Have a great weekend. I’m going to be playing games with Lyncoln and helping Amaris stand up (she LOVES when I help her stand up — might be her favorite game right now, come to think of it) and hanging with my beautiful wife.