🔫 Gangster of the week

GM everyone. This is 2036, the newsletter that pays you.

One of my favorite movie scenes of all time is this one:

Damn that scene gives me goosebumps every time.

You know who’s giving us similar vibes this week?

The Fed.

The Fed (also stylized The Federal Reserve, for the proper ones) is the US Central Bank in charge of a) maintaining maximum employment and b) keeping inflation around 2%.

We’re not gonna get too technical here, but to reach its goals, the Fed uses:

• Interest rates

• Money printing

So either this:

Or this:

For the last ten years, if you didn’t want to get REKT - you shouldn’t have fucked with the Fed.

The Fed lowers rates and prints money? You buy.

The Fed raises rates and stops printing money? You sell.

Just look at tech stocks. Here’s how they move relative to Fed policy:

And here is bitcoin:

Crazy right?

That’s one of the reasons behind the recent pump in markets - including crypto.

Inflation is cooling. Investors are expecting the Fed the slow the rate of interest rate increases - maybe even reverse course and lower them again.

So investors are getting optimistic. The NASDAQ is up 10% year-to-date. And bitcoin is up 35%.

I don’t know about you, but I’m CE-LE-BRA-TIN.

Now - why am I telling you this?

Because tomorrow is the next Fed meeting.

They could increase rates. They could change their expectations of future increases. Or they can dance around the fire and sing kumbaya. Who knows these days.

But starting tomorrow, investors could get even more bullish or bearish.

For now, we’re all waiting for Papi Powell.

Whatever happens, understanding the relationship between the Fed and crypto is critical.

It will save you from spending hundreds of hours watching crypto Youtubers call out next week’s forecast.

And who better to explain it than our old pal Raoul.

Task: earn $15 for a summary of “When Liquidity Changes, Everything Changes”

Raoul Pal is a global macro investor and former hedge fund manager. He’s also a bit of an OG in the crypto space.

Raoul runs a research service that costs $50,000 a year… BUT once in a while, he publishes small extracts for free.

Your task today will be to summarize one of his latest pieces. It’s great. Full of pictures, just like we love it.

So -

Step #1: Read Raoul’s article here.

Step #2: Reply to this email with -

• A short summary of the article in your own words

• Your public bitcoin wallet address so we can pay you

We’ll pick two submissions at random and give them each $15.

And that’s a wrap for today.

Tomorrow is Wallet Wednesday - the easiest task here at 2036.

So stay tuned.

Until then,

Alex.