Monetary Management- Counter-Party Risk Assessments 

… a key component of ballooning AI infrastructure funding provided by insurance companies….

… coinciding at the same time with implosion in asset values of software companies suffering AI disruption….

… furthering this financial crisis that began as a liquidity crisis last summer... 

... resulting in rising interest rates in inter-institutional money lending rates due to tapering easy money policies…

… and accelerated as interest rate increases in long term Japanese government bonds triggered reversals in the Yen carry trade

…latest recovery rates now priced at 20% of par value... substantial losses for insurers once again, similar 2007-8….

...In tandem, the US administration has supplanted the oil sea-cargo insurance underwriting business, replacing it with underwriting services now provided by a US government agency, thereby strengthening US policy maker’s grip on global energy markets

• JP Morgan, the leading private sector open market operator of the world's fractional reserve banking system, announces acceptance of BitCoin as Tier 1 Capital, there by permitting BTC's use as collateral for short term lending, at loan value ratios of 50%-70%, and providing access to liquidity without incurring capital gains tax via sales, at interest rates and therby implied credit risk comparable with top credit rated corporate bonds.
• Kraken is a large international crypto exchange, and has now become the first to be integrated into the US Federal Reserve’s payment architecture, which ensures the world banking system’s access to liquidity. This means Kraken can now receive and disburse capital flow directly with the Fed, and more importantly, can receive liquidity infusions to smooth operational requirements, reducing the potential for failure.

Short-term Dollar strength reflects geo-political realities of the US Administration’s actions impacting energy and trade flows…

Medium-term Dollar strength will likely continue due to capital flow into the US economy resulting from those same changes….

Long-term Dollar weakness will persist: the lessons of every fiat/paper currency inflation in history show that once the interest burden on the national debt exceeds the annual budget, the demise in the currencies value is inevitable. The Dollar has progressed far down that path and is accelerating…

Take-Away: Current Dollar strength provides an opportunity to slowly diversify into alternative monetary assets, for the purposes of:

·  Reducing exposure to short term volatility risks

·  Reducing long term impact of fiat currency devaluation

·  Protecting purchasing power of capital and preserving wealth 

Fiat Currencies of economies that export natural resources (AUS, NOK, CAD) continue to provide better insulation from the fiscal budgetary largesse of the currencies systemically integral (YEN, GBP, EUR) to global monetary policies exercised by the Central Bank cartel.

Digital Currencies (BTC, ETH, SOL) are evolving and rapidly filling specialist niche application uses. Their recent weakness is merely the market’s realization that StableCoins (especially USTA) will gain market share and thereby reduce the long-term valuation of BTC, ETH, SOL, etc. The digital currencies will continue to appreciate as their efficiencies become increasingly widely adapted. The current price softness is simply a reflection of market expectations that the rate of increase of adoption is slower than it was previously.

​​Monetary Metals have recently experienced a slow down in their rate of increase, which is likely to be for a short period, because industrial demand in critical technology underpins their continuing strength of demand. This short pause in the upward momentum is likely to be short lived, as the silver supply shortage crisis continues to exacerbate matters for silver especiall, impacting Gold and other monetary metals (nickel, copper, etc) 

… and highlighted by systemic imbalances in strategic metals supply and demand, reflected in bailouts for critical institutions in the silver settlements system….

• January demands for delivery were 40 million ounces, 40x the normal delivery rate.
• Silver production has seen five consecutive years of supply deficits at 200M ounces/year, now aggregating to a deficit of nearly 1 billion ounces.
• The lease rate for borrowing silver has increased 8x from 1% to 8%,
• Sixty percent of silver’s demand is for industrial uses.
• Seventy percent of silver production comes as a by-product of mining other metals- meaning it can not be easily and quickly increased.

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