The Worst Bitcoin Sentiment in History Just Collided With the Fed's Biggest Lie! | Truth Block

**Lyn Alden** (0:00)
This is the lowest sentiment that I've personally seen on Bitcoin.

**Larry Lepard** (0:02)
Their whole existence is a lie. By definition, everybody who was there is a liar.

**Lyn Alden** (0:06)
I don't think there's anything coming to save Bitcoin.

**Hurley** (0:08)
The first Fed minutes of the Warsh era just dropped, and they leaked the plan. A committee split down the middle. Officials blaming AI for inflation, and a chairman quietly building the machinery to swap out the inflation ruler itself. Because the system is so buried in debt that lying is easier than fixing the problem. Meanwhile, Lyn Alden, probably the most respected analyst in Bitcoin, says sentiment is the lowest she has personally ever seen. And then she said something that sounds even worse. Nothing is coming to save Bitcoin. No legislation, no reserve, nothing. Today, we look at how these two stories are the same story. And when you put them side by side, the thing that looks doomed and the thing that needs saving trade places. This is TruthBlock. I'm Hurley. Let's mine truth.
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Okay, let's start today with the minutes because this was the first real look inside Kevin Warsh's Fed. Yesterday at 2 p.m. Eastern, they released the record of his first meeting in the chair. And if you read past the headlines, you can watch the system negotiating with itself. Rates were held at 3.5 to 3.75 percent. Nine of the 18 officials now pencil in a rate hike this year.
Nine don't. This is a committee split right down the middle. And buried in the staff's inflation section is a line I never thought I'd read from the Fed. Core goods inflation has risen. And the staff blames quote, tariffs and AI related price pressures.
So AI is now officially driving inflation up today. While the chairman's whole case for cutting is that AI pulls it down tomorrow. Unless the plan was never about the data. And that's where this gets interesting. Warsh has a problem. The Fed's own gauge, Core PCE, reads 3.5%.
Nearly double the target. He can't cut against that number. And this debt soaked economy can't survive him hiking. So watch what he's doing instead. He's called Core PCE a rough swag. He stood up a task force to go back to quote, first principles and how inflation gets measured.
And the gauge he keeps praising, the Dallas Fed's trimmed mean, happens to read 2.4% right now. James Lavish broke this down in his informationist newsletter on Sunday that all of you should be subscribed to. Same country, same prices, same month. Swap the ruler and a 3.4% problem becomes a 2.4% victory lap. Warsh doesn't need inflation to fall to two. He just needs the number the Fed quotes to read like two. Listen to Larry Lepard call the play days before these minutes came out on Mentor Sessions.

**Larry Lepard** (2:53)
You know, I actually think the market kind of has this a little bit wrong. I think he's actually a lot more dubish than we now know or than he's letting on. I think he's, you know, it's a script that he plays. I mean, if you really think about what the Fed is, I mean, the Fed is just, you know, it's a government division that's put in place to lie to us about inflation and to get us to accept inflation and then to accept the money printing they have to do to keep the system running. That's really all the Fed is.
And so their whole existence is a lie intrinsically. And by definition, everybody who's there is a liar. And he's just another one. And my view is that he comes in, he emphasizes that they're going to get price stability and even bragged in this most recent presentation from Sintra yesterday, Portugal, that the inflation expectations are coming down, and that's because of his tough talk. And I'm just like, come on, dude, stop taking victory laps. I mean, you've been in there fucking 10 days.
And the market thinks he's going to raise rates. And I don't think he's going to raise rates. In fact, I think he's going to cut rates. I think he's foaming the runway to cut rates with this AI productivity argument. And then his so-called task force is going to come in and tell him that the inflation is overstated and that we should be using the Dallas Trimmed Medium PCI, which is at 2.3 instead of three something. And therefore we can, and he's a supply side or we know that.