Original | Liu Jiaolian
Time flies, and in a flash, it is already the last day of the first half of 2024, June 30. Tomorrow, with the arrival of July 1, the curtain of the second half of the year will slowly open.
The summer of 2024 is as hot as the summer of 2020. However, the difference is that there is no "DeFi Summer" in 2024. There is nothing. The gas fee on Ethereum's first layer chain is as low as 1 gwei. It's like a popular restaurant with a long queue at the door all year round, but suddenly there are no customers. As if they had agreed on it, the diners all hid somewhere at once, as if they were avoiding this scorching summer.
Project parties and cryptofunds are like lazy dogs, lying in the shadow of buildings or under the shade of big trees, sticking out their long, fiery red tongues, nodding their heads constantly, or simply closing their eyes and taking a nap, too lazy to move in this unbearable hot air.
The weather is hot. The market is cold. The hearts of the cryptocurrency traders who are losing money are even colder. But the coldness in their hearts cannot turn into physical coolness. In the end, they still have to turn on the fan and air conditioner, and spend some carefully calculated electricity bills to make themselves live a little more decent in this summer.
I saw a short video blogger make a shocking statement in defense of the Federal Reserve. He criticized the claim that US dollar capital is using the US dollar circulation cycle artificially created by the Federal Reserve to harvest wealth around the world.
This behavior is quite puzzling. Maintaining the "greatness and justice" of the Federal Reserve is actually the mainstream opinion in the "high-class halls". Otherwise, the Federal Reserve would have stepped down long ago. Countless Nobel Prize professors, academic papers, theoretical books, and school textbooks all support the Federal Reserve's system. It does not need an unknown blogger to add fuel to the fire. What does it mean? Is it to be different?
In fact, the so-called "harvesting" in the folk is not some secret and shameful means as some people think. The harvesting technique of the Federal Reserve is originally an open and aboveboard conspiracy. It's just that in the orthodox academic world, this term is called "optimal allocation of resources (capital)" or something like that.
Everyone knows what the financial market is about. It is definitely not about producing value, right? Textbooks say it is about optimizing resource allocation, or capital allocation.
Simply put, as the Coase Theorem states, capital will automatically tend to flow into the hands of those who can add value most efficiently.
How is capital optimization achieved? It is through "harvesting", but it is an aboveboard harvesting. Optimization and harvesting are actually the same thing, just two different expressions.
You are a small retail investor with no financial strength, no inside information, no control over the money printing machine, but you come to the financial market with a dream of getting rich quickly and a pitiful amount of capital saved by sacrificing your quality of life. Before long, you have lost everything. You curse and say that you have been "harvested". The Nobel Prize-winning professor will say that this is just the "optimal allocation" of your capital by the financial market. According to the Coase theorem, it has flowed to people who have the strength and means to increase the value of this capital faster.
If you study finance, you will learn that the meaning of the financial market lies in the "optimal allocation" of capital. If you trade finance, you will experience firsthand how your capital is "optimally allocated" by the financial market. Replace the gentle and elegant word "optimal allocation" with the plain and understandable word "harvest" in the previous two sentences, and the meaning will remain unchanged.
In the first section of [6.30 Teaching Chain Internal Reference: Review of the US Dollar Index and BTC Trends, Who Wants to Win Without a Fight?], I spent quite some time and space this morning, combining the review of the US Dollar Index and BTC over the past year to point out that the Fed is at the end of its rope. I recommend you to take a look. The Fed is forcing high interest rates, ignoring its weak exterior, and insisting on singing the hawkish tune. Isn’t it to “optimize the allocation” of global capital, or to do charity for the grassroots people?
Perhaps Federal Reserve Chairman Powell knows in his heart better than anyone else on this earth that if he can [“achieve success in one battle” and defeat Tokyo University] this time, he will become an American hero, worthy of being enshrined in the Imperial Temple and his name will go down in history; but if he fails and is forced by the situation to surrender, thus wasting all his previous efforts, then he will become a sinner of the United States, not only will he be unable to report to his bosses behind him, but he may also be disgraced for eternity.
(Official account: Liu Jiaolian. Knowledge Planet: reply “Planet” to the official account)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is an extremely high-risk product and there is a risk of it returning to zero at any time. Please participate with caution and be responsible for your own actions.)
