The money supply growth rate is the key driver of inflation and nominal GDP growth, with a 10% annual growth rate consistent with hitting a 2% inflation target.
Commercial banks produce about 80% of the money supply, while the central bank produces the remaining 20%, highlighting the importance of bank regulations in economic control.
Changes in the money supply, with a lag, directly impact the economy, specifically nominal GDP, which encompasses both real GDP growth and inflation numbers.
The ratchet effect of government programs makes them difficult to reverse, leading to permanent increases in government intervention and bureaucracy.
The Department of Defense operates as a “black box” due to its size and complexity, using national security as a shield against audits and logical scrutiny.
The projected US budget deficit of over 6% of GDP is a negative factor affecting confidence and potentially slowing economic growth.
The Congressional Budget Office’s model assumes unrealistic “rosy scenarios” like no recessions and perpetual full employment, potentially understating the true deficit.
The government’s lack of transparency in disclosing total budget spending numbers raises concerns about potential collusion between government and media.
The New Deal’s implementation of fine-tuning and government intervention during the Great Depression was based on false advertising and exacerbated economic issues.
The quantity theory of money is crucial for understanding the economy, emphasizing the role of commercial banks in money production through lending.
The government’s budget process is complex and opaque, with over 900 pages of details, making it challenging for Congress members to comprehend the entire budget.
Government budget priorities are driven by self-interest and lobbying, with focus on specific provisions benefiting constituents rather than overall fiscal health.
JP Morgan forecasts gold prices could surge 25% from $3,400 to $4,000 in the next 12 months due to a weaker dollar, rate cuts, and gold’s role as a hedge against soaring government debt.
Central banks globally purchased over 1,000 tons of gold in the past year, equivalent to their entire buying volume for the 1980s decade, indicating a significant shift in monetary policy.
The value of all above-ground gold has tripled from 7% to over 20% of fiat currency value, reaching $22 trillion compared to $100 trillion of fiat, positioning gold as a shadow bet on fiat collapse.
Without radical changes like a balanced budget amendment, paper money is predicted to have only 15-20 years before potential collapse, making gold and Bitcoin attractive holdings in the interim.
90% of gold’s price correlates with M2 money supply, demonstrating its primary function as a hedge against fiat currency devaluation rather than industrial or jewelry demand.
Wealth inequality in the US and Canada is at an all-time high, with central bank policies injecting liquidity primarily into the hands of the super-rich, while the middle class and lower income groups struggle with basic necessities.
The Fed’s interest rate policies have created a two-tier economy, where the economy of the rich thrives while the typical American struggles with high cost of living, unaffordable housing, and a low standard of living.
Manufacturing jobs in the US have decreased due to automation and efficiency gains, but the manufacturing sector itself has not shrunk, leading to a misconception about the state of American industry.
The service sector has expanded dramatically in the US, with couples increasingly ordering food online or eating out, contributing to the shrinking of manufacturing employment but not the sector’s overall output.
The current path of excessive government intervention and wealth disparity is creating an unstable environment that will eventually have severe repercussions, even for the super-rich, according to Dr. Doom Marc Faber.
The US dollar’s purchasing power has declined massively over the past 100 years, making it essential for individuals to own precious metals like gold, silver, and platinum as a store of value.
Donald Trump is described as the “most ignorant but greatest interventionist” in government history, yet considered a better alternative than typical Western leaders who are labeled as “cuckoo” and “ignorant”.
The platinum market is tiny compared to gold and silver, and if Russia and South Africa squeeze the market, the price could easily surpass that of gold, presenting a potential investment opportunity.
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