Written by Bryan Lutz, Editor at Dollarcollapse.com:
Every Sunday morning I sit down to write a few thoughts to dollarcollapse.com subscribers.
Not today.
Today’s message was written on Thursday evening because I am headed to Kelowna, BC, Canada for a 10km(6.2 Mile) run with my family.
So please excuse me if there are some dramatic changes over the next two days.
Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues effecting the markets, or the economy.
Here are three thoughts for this morning:
1. You can see US Deficit spending spiking up during certain events in the past. Mainly, during war. However, since Nixon took the USD off the gold-standard in 1971 we’ve been seeing a downward spiral. Now, the US is in a place where they MUST spend to pay for debt.
Yep, unless something drastically changes in the US government to cut spending, deficits will continue to pay for the ever-increasing cost to service the national debt.
A national debt, which is now about to hit $37 Trillion.
Over the past several years, we are looking at deficits equal to 9% of GDP spending.
And right now, 3.2% of GDP goes toward paying interest on the federal debt.
Both are quickly growing.
via @kolbessiletter
So, if you look at the US economy from the perspective of GDP growth versus debt, this is how it looks:
Deficit spending, and the cost to service federal debt are both eating up US “economic growth…”
By 9% deficit spending year-over-year, and another 3.2% just to pay for debt and deficit spending(plus previous debt) are both dogpiling.
Meanwhile, the money supply is hitting another all-time-high. $21.86 Trillion now in circulation. This chart from Porter & Co. shows the rising supply.
via @porterstansb on Twitter
This means higher deficit spending next year, bigger interest payments on the federal debt, and when the Federal Reserve drops interest rates this year…
More inflation…
And higher prices for gold.
The next few years we’re going to see some big changes.
2. Have you seen the Bitcoin Meme buys this week? GameStop is buying big. Also, Trump moves to save his struggling social media platform.
Back in August of last year, I shared some interesting news about GameStop – everyone’s favorite meme stock..
Their CEO had just met with Michael Saylor, one of the biggest promoters of Bitcoin.
At the time, GameStop was closing down stores, liquidating stock, and piling up their cash reserves.
Cash reserves in the BILLIONS.
Now they just made a big move.
They’re shorting the fiat world by buying 4,710 Bitcoin.
And that makes GameStop the 13th largest treasury valued just over $500 million.
Yet, they still have $5.5 Billion in cash with a $15.5B market cap.
As the internet is saying if Bitcoin reaches $1.5 million by 2030 one GameStop share will be worth $450.
Meanwhile, Trump is making a similar move to save Truth Social.
Politico reports:
Trump’s social media venture strikes $2.5B deal to buy bitcoin
“President Donald Trump’s social media startup has a new business strategy: Buy bitcoin.
Trump Media & Technology Group — the parent company of Truth Social, whose controlling shareholder is Trump himself — has entered into deals with about 50 large investors that will raise $2.5 billion for the company through both stock and debt, according to a statement Tuesday.
The company plans to use the funds to create a “bitcoin Treasury,” a move that further deepens the footprint of the president’s business empire in the $3.5 trillion cryptocurrency market.”
By the way, Bitcoin went back up to $110k after these announcements.
Thoughts?
3. As you read this, I’m probably running. It’s not a half-marathon. My brother is taking that category up. But this has me thinking more about the important of exercise to help us liver longer.
I haven’t decided yet, because I’ve thought to run at least one half-marathon in my life, but I do want to build more muscle mass.
That’s because it’s one of the three strongest modifiable risk factors when it comes to living longer.
Here they are:
- Low muscle mass, (Go to gym)
- Strength, (Go to gym)
- And VO2 max (breathwork, and High-Intensity Interval Training (HITT))
Find out more in this free 3 hour masterclass:
One thought on "3 Sunday Morning Thoughts – June 1 Edition"
Good luck on your run! My knees abhor running, so I prefer to ride my motorcycles. Hey, don’t laugh, the Internet says it burns calories, so there! 😉
So, Trump and his Crypto-Czar make policies for Bitcoin, yet Trump invests $2.5 billion in Bitcoin. Umm, we do have an Emoluments Clause in the Constitution. If only Congress would hold the President of the United States (POTUS) accountable so that SCOTUS could make a ruling once and for all, but since all of Washington is corrupted by money (including SCOTUS), I won’t hold my breath.
My biggest concern regarding the dollar and debt is that the world has sought an alternative to using the dollar as its international currency, for obvious reasons, which have been made even more apparent under Trump’s tariffs. China and BRICS will be sought out more in the next four years, while Trump fumbles around, taking the US from the world’s leading power down to the leader of North America. Trump has already screwed that up by distancing himself from Canada and Mexico. We can’t influence South America because China has a significant investment there. Central America is just US vassals seeking independence. After four years of TACO MAN’s ineptitude, we may become an empire of one.