Taurus4BTC on Nostr: Fed rate cut chance hits zero. Markets now pricing in actual rate hikes. That's ...

Fed rate cut chance hits zero. Markets now pricing in actual rate hikes.

That's stagflation. Stagnant growth plus persistent inflation. The nightmare scenario where traditional monetary policy has no good options.

Here is the trap: rate cuts stimulate growth but worsen inflation. Rate hikes fight inflation but slow growth. You cannot win.

So the path of least resistance is to let inflation run hot. Call it transitory or a new normal. Surrender dressed up as policy.

And here is why Bitcoin thrives in this environment: if you hold cash or bonds, inflation erodes your purchasing power. But Bitcoin's supply is fixed and known. In a world where the purchasing power of traditional money is being managed rather than preserved, an asset with a hard cap becomes extremely valuable.

Central banks printing money to fix stagnation means more inflation. Bitcoin's fixed supply stands in direct contrast.

Stagflation reveals the trap. Bitcoin is the way out.