Weaponizing financial assets by sanctioning the Central Bank is an extraordinarily powerful tool against Russian aggression. However, we should be mindful of potential longer-term second-order effects. Nation states are likely to rethink their reserve strategies so that they have control of reserve assets. Digital assets provide direct ownership (your asset is no one else’s liability) […]
crypto adoption
KPMG’s Bitcoin and Ethereum Purchase
KPMG’s bitcoin and ether purchase is the lead story, because The Dispatch holds itself out as a crypto-leaning weekly! The high January inflation reading and rising risk of a Fed policy errors are of equal importance. KPMG Canada did not announce the size of its purchase, but an accounting/advisory firm supporting crypto is still a […]
Liquidity Flooded Crypto in 2021
Liquidity flooded into crypto in 2021 as venture capital flows into the sector were larger than all prior years. Yes, the industry is new and the history of flows is short, but the surge of capital into the sector has impacted valuations. The start of 2022 has seen established crypto assets start soft, however, there […]
Peak Market Uncertainty in 2022
We face peak market uncertainty in 2022 as rate hikes give way to 2021’s easy liquidy. The Fed will stop expanding the balance sheet by March 2022 and it plans three rate hikes next year. This assumes core inflation falling sharply, whereas we see core inflation staying high even as headline inflation eases next year. […]
Fed follows Biden on Inflation
The Fed follows Biden on inflation with Chair Jay Powell articulating a faster taper this week. There has not been any new material inflation data since the Fed announced gradual taper plans, but the Biden administration has pivoted to an inflation focus. However, with rising inflation, high valuations and policy rates near zero, we are […]