Is a recession on its way and, if so, what does this mean for digital assets?

One of the biggest challenges facing many economies is that governments have spent years pumping money into their economies in the form of quantitative easing which has forced interest rates down. For example, for years, M1 money supply (the amount of cash in an economy) in the US had gently been creeping up from $1.5trillion to $4.5trillion. Then in 2020, the printing presses were turned on and the amount of cash sloshing around the US economy shot up to over $21trillion by 2022. The result was that financial assets significantly rose because all this new cash was searching for a place to reside. Therefore, equities, real estate and bonds shot up which, in turn, pushed interest rates down and so encouraged companies and individuals to borrow more and more. The level of borrowing has been on an unprecedented level so that now there is a situation where there is only one company in the S&P 500 that is debt-free and only six firms in the S&P 500 have less than $100 million of debt. And,…