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) […]
gas fee
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 […]
Signs of Market Froth
Signs of market froth are rising in both digital and traditional assets. As we show, 10-20% fees on transaction value makes no economic sense, but that is the reality on Ethereum today. This points to expectation of higher asset prices offsetting the punitive fee. Rivian, the recently IPOed electric vehicle maker, reached a $150bn market […]