Watch Out!! Economy Could Get Worse?! The BIS Predicts This!

"central banks will raise interest rates again if inflation doesn't come down and that we could be in for years of central banks aggressively raising and lowering interest rates to keep inflation under control"

"a spike in commodity prices has historically been followed by a recession this means we could get both"

"the biggest risk seems to be that interest rates will stay higher than economic growth as that could drag everything down"

"AI will help boost Global productivity"

"the bis believes that AI will increase the demand for labor not decrease it"

"too much debt could cause long-term interest rates to rise as the supply of bonds increases too much relative to the demand causing bond prices to fall and yields to rise uncertainty around fiscal policy could also create bond market volatility"

"in the case of too much inflation holders of government bonds will demand a yield to compensate for the fact that when the bond is paid back the money won't be worth what it was when they lent it out because of inflation this can likewise cause rates to rise and could cause Bond volatility"

"central banks will have to buy up the excess government debt to ensure that yields stay down and markets stay calm this will be rocket fuel for risk assets as they are the most sensitive to liquidity and at the tip of that space shuttle you've got crypto"

"BTC prices lag changes in liquidity by 6 to 8 weeks"

"in the short term this will suck because asset prices will stay high while the prices of goods rise as a result of workers finally being paid their fair share"

"in the longer term however asset prices will cool off and wages will continue Rising this means that in the next decade buying a house and starting a family will become much more affordable most importantly how hard you work will finally be reflected in your paycheck which will supercharge economic productivity"

"for the rest of the this decade though it will probably be more of what we've seen in recent years increasing political and geopolitical instability"

"asset prices will probably keep Rising because of central bank money Printing and I'll remind you that crypto will be the biggest beneficiary of this liquidity increase"

"as we approach the end of the decade though it may finally be time to take some much needed profits as hyperfinancialization starts to fade"