Stalled Politics, Shaken Crypto Markets, and the Limits of Government Action

Good Morning Ladies and Gentlemen

“Europe is sleepwalking into economic ruin because of complacency and protectionism.”

Serbian President Aleksandar Vučić

Why are Governments not acting?

I recently had an in-depth discussion with my partner, Dr Christian Schärer, regarding why governments often fail to fulfil their promises to the electorate. Frankly, I believe this is largely due to their inability to do so. In many liberal democracies, significant political issues have increasingly become subjects of legal proceedings; the United States remains a somewhat commendable exception to this trend. This trend toward the legal entanglement of major political matters limits the scope for action available to many governments, particularly within the European Union. Therefore, I believe that, sooner or later, we will need to consider repealing certain laws and regulations. Whilst I am generally no fan of Mr Vučić, I do think he has a point with this statement.

Bitcoin

As noted by one of my readers, Bitcoin experienced its lowest level in nearly four months on Thursday morning. This downturn was primarily prompted by Strategy, a company founded by Michael Saylor, which sold approximately USD 2.5 million in Bitcoin from its large holdings. Saylor’s Digital Asset Treasury has been one of the most significant purchasers of Bitcoin in recent years and had claimed never to sell any of it, which, as we have now seen, was not quite correct. While the sale was relatively modest, it still unsettled investors. Yet, other factors also contribute to this decline, including the ongoing conflict in the Middle East, which continues to weigh on overall market sentiment. During early trading in Singapore, the cryptocurrency dropped by 5.5% to USD 61’322, marking its lowest point since February 6th. Although it subsequently stabilised, it struggled to rebound past USD 65’000, ultimately resulting in a loss of approximately 13% of its value.

Market Consensus

I sense that the prevailing sentiment in the financial markets is leaning towards expectations of higher oil prices, coupled with a strong desire among Americans to bring the conflict in the Middle East to a swift conclusion. However, I question whether this consensus is entirely accurate, so I would like to share the latest episode of a truly intriguing podcast with you.

MacroVoices

The podcast „MacroVoices,“ hosted by Erik Townsend and Patrick Ceresna, features a discussion with Dr Pippa Malmgren and Jim Bianco. This dialogue explores the implications of artificial intelligence and robotics for employment, delves into advancements in nuclear fusion technology, examines the disappearance of scientists, and addresses a range of other pertinent topics. It gives you a different, sometimes astonishing, maybe even slightly frightening and then again refreshing perspective on what is going on in the Middle East and beyond. Enjoy:

https://www.podbean.com/ep/pb-7ptyb-1ad5606

Ladies and Gentlemen

Feel free to send your messages to smk@incrementum.li. Many thanks, indeed!

I wish you an excellent start to the day and weekend!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 153
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li