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In this episode of Bitcoin MagazineChristian Keroles and Ansel Lindner’s “Fed Watch” podcast spoke to Greg Foss, who “has a 30-year history in banking, bonds, and the credit markets as a whole. His knowledge of Bitcoin and the state of the banking industry and the global economy is incredible, ”according to an online biography.
Foss is the second Canadian guest in the final three episodes, and “Fed Watch” brings great North American bitcoiners with unique perspectives on all aspects of how bitcoin meets the challenges of entering the dominated financial world. central banks.
In this conversation, the hosts learned a bit more about Foss’ background in the banking industry. He began his career in 1988 at the Royal Bank of Canada (RBC) where he quickly realized that it was insolvent due to its exposure to the Latin American financial crisis. He then worked for and found many influential financial firms in Canada over the next 30 years, until he found Bitcoin in 2016.
The reason “Fed Watch” wanted to host Foss is because of their interesting bitcoin valuation thesis, which you can find on the website linked above. It focuses on bitcoin as a portfolio insurance for fixed income investors. From this episode, the auditor will receive a master class on credit default swap (CDS) spreads and prices.
Today, the CDS market is the way financial sector prices risk in the credit market with the goal of creating seamless investable products for fixed income investors. The problem is, when financial conditions change, which they do very often, those prices move, forcing investors to react and causing prices to spiral downward. It is a very unstable environment. Foss pointed out that bitcoin is a great fit for this market to reduce risk and act as a hedge during inevitable times of market instability.
Another aspect that Foss focused on was the unfeasible mathematics of global debt. He used an example that the world economy, which has remained below 5% a year since 1976, must reach levels approaching 12% growth just to service the current debt. In this world, there will be flaws, the system will have to readjust and this readjustment will be painful.
In the second half of this episode, they covered central bank digital currencies (CBDCs), the global nature of credit markets and what central banks are doing to combat this deflationary environment before moving on to the current business enterprise. by Foss. Validus Power Corp is involved in converting stranded energy from oilfield torches into usable energy to mine bitcoin. It is a booming business across North America. Naturally, the conversation turned to a North American renaissance fueled by industrial bases on land, global capital and the burgeoning energy sector.
“Fed Watch” has established itself as the bitcoin podcast that goes beyond surface arguments about the monetary system, delving deeply into how bitcoin will reshape that system. He brings exciting guests from all corners of the macro to discuss the most important topic of finance today.