This post was originally published on this site.For many years now, there has been one narrative that Bitcoin has sought to capitalise on. And that is if governments borrow too much, fiat currencies lose their purchasing power and investors will seek refuge in scarcer assets. That is the idea of the debasement trade. Now with US government debt topping $40 trillion and long-term Treasury yields rising to multi-year highs, concerns around fiscal sustainability is becoming harder and harder to ignore. And it is not just in the US, we’re also seeing that to be the case in Japan, Europe, and...

This post was originally published on this site.The European Central Bank is widely expected to raise its deposit rate by 25 basis points to 2.50% today, with the move already fully priced in by the markets. With the rate decision itself unlikely to provide much of a surprise, the focus will be mainly on President Lagarde’s press conference. The meeting comes against a complicated backdrop for the Governing Council. Eurozone headline inflation accelerated to 3.3% y/y in August, while energy prices have risen sharply amid the ongoing geopolitical tensions and disruptions in the Strait of Hormuz. European gas prices reached...