Feeling black pilled recently

Germany's month-over-month CPI inflation rate is 2.7%, while core inflation rate has retreated to 1.8%. TradFi economists are commenting that these numbers show an "intact downward trend" and "returning price stability" (ECB definition bla bla). Complete gaslighting. The only stable things here are the theft and double taxation by the German government. Check your shopping receipts; inflation rate is still elevated at 7-10%. CPI = Verbraucherpreisindex, VPI Core Inflation Rate = Harmonisierter Verbraucherpreisindex, HVPI

GM. My favorite cup for morning tea.

The Bank for International Settlements (BIS) said that stablecoins "perform poorly" as money. This is apparently because they are not backed by central banks, lack sufficient safeguards against illicit usage, and don't have the necessary funding flexibility to generate loans. Let's revisit this. - Stablecoins (e.g. Tether) are backed with U.S. Treasuries. This extends to the FED, i.e. the central bank. - Stablecoins require KYC if you exchange fiat for them on a regulated exchange. Not too different from getting fiat cash from an ATM. You need a bank account for this. Needless to say, both cash and stablecoins can be used illicitly to the same extent. - The flexibility needed to generate loans is essentially creating money out of thin air aka commercial bank lending. This is a given with any fiat instrument. So long there is no full proof-of-reserve, one has to trust the issuer. In summary, stablecoins are just like fiat currency because they are exactly that, continuously debased tokenized fiat currency. They perform well as money for the time being. Ask anyone who is actually using them. So what is the BIS on about? Well, what the BIS is not saying is that stablecoins should be issued by central banks (read CBDC), not private entities possibly out of regulatory reach.