Nice presentation, mulling over the subscription. Now, fiat money, is created through debt issuance, my understanding is that this NEEDS to continue for our economies not to collapse. So, effectively, the higher the rate of interest, the more money needs to be created, the more the debasement. In Europe, this monetary expansion is mainly created by the government sector as it taxes the private because it has no incentive to invest and dampens interest rates through it's central bank. I understand how America doesn't want to turn into Europe, but I don't fully understand the global $ in relation to it's durability in the absence of global US goods/ technology flows. I guess in this scenario it is surpassed by the CNY along with political influence over trading partners.....
Tom, this is what my letter Me and the Money Printer centers on heavily. The government sector does not fully create monetary expansion. There is an entire shadow banking system in the global economy that requires more and more dollars to refinance global debt.
The global monetary base doubles roughly every ten years. Debt is exponential - and the liquidity to refinance it runs in cycles. This helps explain why we have significant refinancing crises - things that are supposed to be every 64 year events happening every two to four years.
It is quite a maddening process. The question is how to allocate properly toward this system. Thank you for taking the time to watch.
Cyclical rotation comes to mind, have usually focussed on a micro level myself, cheap companies w/buybacks or dividends however not going so well this year. Cheap can get cheaper......
Nice presentation, mulling over the subscription. Now, fiat money, is created through debt issuance, my understanding is that this NEEDS to continue for our economies not to collapse. So, effectively, the higher the rate of interest, the more money needs to be created, the more the debasement. In Europe, this monetary expansion is mainly created by the government sector as it taxes the private because it has no incentive to invest and dampens interest rates through it's central bank. I understand how America doesn't want to turn into Europe, but I don't fully understand the global $ in relation to it's durability in the absence of global US goods/ technology flows. I guess in this scenario it is surpassed by the CNY along with political influence over trading partners.....
Tom, this is what my letter Me and the Money Printer centers on heavily. The government sector does not fully create monetary expansion. There is an entire shadow banking system in the global economy that requires more and more dollars to refinance global debt.
The global monetary base doubles roughly every ten years. Debt is exponential - and the liquidity to refinance it runs in cycles. This helps explain why we have significant refinancing crises - things that are supposed to be every 64 year events happening every two to four years.
It is quite a maddening process. The question is how to allocate properly toward this system. Thank you for taking the time to watch.
Cyclical rotation comes to mind, have usually focussed on a micro level myself, cheap companies w/buybacks or dividends however not going so well this year. Cheap can get cheaper......
Money is moving defensively now. Stage 3 of domestic liquidity cycle.
Quality and value over the 20 day SMA works for trading