RE: Added Context
A reader reached out about yesterday’s piece.
We’re thrilled to have doubled the network effect of our insights! And there’s more history to make on the way.
Reply below…
Basically, the US federal debt usually constitutes 1/3 of the total world government debt, although for various reasons, total government debt should only be used as a reference. Usually, government debt also accounts for 1/3 of the total world bond market.
More importantly, the piece works to indicate how to measure the size of government via debt and how it gets bigger irrespective of the type of government, whether democracy or authoritarian.
I would pay particular attention to identifying double negatives or double inversions for readers to add to their arsenal of understanding all that is going on. This is why I often say that hard money proponents should broaden their horizons beyond the intellectual laziness of simply resorting to playing for the final seconds in the end game.
Remember, if time is money, then more money equals more time. This suggests that central banks printing and diverting financial calamities ensures the merry-go-round spins longer.
As they state, the feelings of love and hate are almost identical. This means the conviction of bulls and bears enables them to deeply rationalize the inverse position and delve further into the double inversion.
This is what I intend to share with readers on a monthly basis, as it’s one of the greatest discoveries I’ve added to my arsenal of thinking. It’s the recognition that human nature and being human always involve flaws, and understanding these flaws within the confines of the system we’re in allows for redemption. The manifestation of the redemption arc, truly a Western feature, is why exponential hockey stick curves exist - this is why US large cap always leads.
Therefore, the staunch hard money advocates should consider trading the S&P 500 and buying Boeing, Taiwan, Israel, and Crowdstrike for the very reasons they are bearish on Keynesian economics.
Best,