War Against Inflation – Bitcoin Beats S&P 500, Gold, and Silver by a Wide Margin in 2021

Bitcoin was the best weapon against inflation for the people in 2021. And it will remain so in 2022.

Image: Hedgeye - Adapted by @ssaurel

The denial of the powerful people at the head of the current system has finally ended in December 2021. After many months during which Jerome Powell or Janet Yellen kept repeating that inflation in America would only be transitory, they have finally been forced to admit the obvious: high inflation will be a major problem in the months to come in America.

The November 2021 figures were unambiguous: +6.8% in America.

Inflation has not been this high in America for almost 40 years:

Under these conditions, Jerome Powell could no longer continue to lie about transitory conditions inducing high inflation. Jerome Powell admitted that this inflation was a problem that the Fed had to address. The inflection of the Fed's monetary policy announced in December 2021 is proof of this.

It must be said that such a high level of inflation in America is problematic on all levels, and it has become a political problem that Joe Biden must address as well. The levers he can pull exist, but their effects are more than uncertain.

For those who follow the economy daily like me, this was not a surprise. One only has to look at the evolution of the quantity of US dollars in circulation since March 2020 to understand that this high inflation was inevitable: