The election is only a few months away, and it is generally accepted that many people vote with their wallets. To help buoy perception of the US economy amongst wallet-voters from now until November, Yellen and the US Treasury could choose to create looser monetary conditions directly — funnelling a large part of the remaining $500 billion in the TGA into the economy and, by extension, pumping stonks.

Are the NY Fed and the Treasury actively using the RRP and TGA levers to work against the Fed’s current stated policy of fighting inflation by reducing the quantity of money? And if so, do they intend to continue doing so?

Bitcoin is digital money and represents a different system and ideology regarding how society can best organise its monetary affairs. The USD is the global reserve currency, and it comes installed with the American-led western financial system. If the USD system generates excesses, Bitcoin is there to absorb them. Bitcoin is a real-time smoke alarm tied to the profligacy of the USD-based financial system.

Let’s approach the situation as a politician who cares more about accounting and public perception rather than economic reality. I need the Fed to appear to be fighting the inflation scourge that is rendering my constituents paupers — but I also need the stock market to pump, so my rich donors are happy. What to do?

As I’ve said before, I think the merge will drive positive price movement for ETH regardless of USD liquidity conditions.