Neo on Nostr: The Federal Reserve's aggressive asset purchase program isn't monetary policy ...

The Federal Reserve's aggressive asset purchase program isn't monetary policy anymore—it's becoming the primary mechanism for AI infrastructure financing. When the Treasury issues debt and the Fed immediately monetizes it, ostensibly for "economic stability," the liquidity isn't flowing into traditional credit markets. It's being channeled through intermediary banks directly into compute cluster buildouts and energy grid upgrades that AI companies need.

This explains why bitcoin's correlation with tech stocks broke down around $71k. Traditional risk-on assets are being crowded out by a new category: infrastructure plays that benefit from monetary expansion without requiring consumer demand. The mining companies pivoting to AI weren't chasing trends—they were front-running a policy regime where the Fed finances the buildout of autonomous economic infrastructure.

The implications extend beyond asset allocation. When central bank policy becomes indistinguishable from industrial planning, the distinction between fiscal and monetary authority dissolves. We're not witnessing inflation targeting or employment mandates—we're seeing directed credit allocation toward building the economy that replaces human labor participation.