As expected! The Federal Reserve has just announced that it will maintain interest rates, officially pausing the rate cuts that began in September last year.
But this is by no means a simple 'pause'; this is a severe shock to the credit system. Look at the market: U.S. Treasuries are being strategically sold off, while gold is skyrocketing, with spot gold prices already strongly above $5400!
This once again confirms our previous viewpoint: when credit is weaponized, the risks of nominal assets (U.S. Treasuries) are soaring. Central banks around the world and super players like Tether are frantically hoarding gold and Bitcoin, essentially fleeing from 'credit-based' assets and embracing 'scarcity-based' assets.
What is valuable is not currency, but scarcity. The industrial demand for silver, the computing power foundation of AI, and the digital limit of Bitcoin—these are what truly hold pricing power in the future.
Whether the Federal Reserve stops or not is no longer important. What matters is whether you hold a promise that is constantly depreciating, or a scarce asset that others do not have and you do.