Kevin Worstress’s First FOMC Meeting: Fed Holds Rates, Kills Forward Guidance, and Sets the Stage for an AI Bubble Burst That Rotates Capital Into Bitcoin đźź
Dante Cook of Bitcoin Simply breaks down Kevin Worstress’s debut FOMC meeting, explaining why markets sold off despite no major policy change—and what it means for the coming AI collapse and Bitcoin’s role in the aftermath.
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Rates Held Steady 🔒 – The Fed kept the target range at 3.5%–3.75%, a non-event. The real story is what Worstress didn’t do.
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Forward Guidance Dropped ❌ – Worstress eliminated the old playbook of clear forward guidance, creating uncertainty. Markets hate uncertainty—stocks, gold, and Bitcoin all sold off as risk appetite shrank.
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New Task Force Created 🏛️ – He announced a task force on communications. This sounds boring but is key: it lets the Fed delay tough decisions, shift blame, and “listen to experts” while keeping the same inflation-fighting playbook. It’s the machinery for a major move the market doesn’t see coming.
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Predicted AI Bubble Burst 💥 – Cook argues the massive capital pouring into AI (e.g., ocean data centers, overvalued startups) is a bubble bigger than subprime. Demand isn’t real; companies are already pulling back. When it pops, the fallout will dwarf 2008, and the Fed will print trillions to save “too big to fail” AI firms.
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Capital Rotates Into Bitcoin 🟠– That printed fiat can’t fix AI’s core problem (you can’t print Moore’s Law). Capital will flee to the only scarce asset: Bitcoin. Fixed supply + energy‑tied = the ultimate safe haven in an age of infinite everything.
Final Takeaway – This is your John Paulson/Michael Burry moment. When the AI bubble breaks and the money printer goes brrr, Bitcoin is the pristine capital that soars. Keep stacking quietly, borrow from your Bitcoin without selling, and treat it like Manhattan real estate. In a world of infinite fiat, scarcity wins.