Written by Bryan Lutz, Editor at Dollarcollapse.com:
Here are three Sunday Morning thoughts…
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. Zuckerberg is finding out the easy way. Free speech, just like free markets either attract value or they don’t. But why are free markets attractive?
META stock for Facebook’s parent company has gone green for 20 straight days now.
It hasn’t lost a beat on its way up to making Zuckerberg the second richest man in the world under Elon Musk.
So far, free speech seems to be attracting value.
Just like a free market, META is attracting capital – more money is piling into the company’s public offering.
That’s because free markets are attractive. They offer an ever expanding network.
They allow you to build your network, and the more you communicate…
The more you trade…
The more valuable you, or your product becomes.
People get it.
That’s why Zuckerberg is getting richer.
When you have open communication on Facebook, you can reach more people with your message or product.
So, META stock goes up.
2. The Buffett Indicator is all the way back up from where it was in late 2021. Is this the peak of the everything bubble?
This isn’t good.
The Buffett Indicator is higher than its 2022 peak.
Buffett started selling much of his stock in 2022, which has made his cash pile grow substantially.
Berkshire Hathaway is sitting on $325 Billion in cash.
What’s he waiting for?
The same thing we’re all waiting for here at Dollar Collapse.
He’s waiting for a market crash so he can buy up under-valued assets.
And become… RICH!
As if Buffett isn’t rich already – he is.
But what he may not be prepared for is what we are preparing for here – a revaluation of the USD, gold, and a new financial system.
He wants to wait. Let the stock market drop, bottom out, and let the system’s inflationary aspect carry his conglomerate forward into one conglomerate to rule them all.
Now, I’m not sure if that’s what he really wants, but that is what’s possible.
It’s also possible we see an entire reset of the system.
A reset where his cash won’t as valuable, but still advantageous.
3. Yikes! Is this just a Bidenomics blow-off or is Government spending not going down. Here’s what government spending really depends on.
I’ve been banging on this point for awhile.
Government spending isn’t going down, and in fact, it’s gone up more than last year.
$142 billion higher than last year totalling $642 Billion.
In 10 years, government spending has doubled.
It’s out of control.
And since 2020, deficit spending has become a staple of fiscal policy pushing the Everything Bubble to its utter most limits.
But the thing spending really depends on isn’t reducing deficits, it’s growing interest payments on public debt.
The Everything Bubble may be able to keep growing for awhile, but not for long.
The chart you see below is a little too generous.
It shows interest payments rising for awhile after 2025 and then going down… Unlikely the gap will close, or get smaller.
If anything, the gap between Primary and Total deficit will widen, increasing interest payments for the national public debt.
And that means, more of the Federal budget will need to be directed to paying down the public debt.
How will the debt be paid?
Not by reducing DEI.
Not by reducing foreign payments that look like corruption.
And certainly not less government employees.
Although reducing those things may help, interest payments are the real problem with government spending.
