And why are all the restaurants and cafes busy and everyone is traveling?! Credit cards!
Give a person the lead way to spend and they will consume. Move over ricardian equivalency. There are effects to people having “money” aka CC to spend now.
“Because investors &
AI agents aren’t a productivity story. They’re a fraction story. $META $SPCX Productivity is output over input. Every prior technology moved one side. The steam engine raised output. The assembly line cut input. Agents do both in the same quarter: more output per worker, fewer inputs per unit of output. Numerator up, denominator down. That’s…
They will do whatever is possible to bring the long end down. First the yield curve twist, now full yield curve control. Buybacks are coming in strong. Treasury and the Fed will take turns printing money. Debasement is structural. Inflation is embedded in the fiat, credit-based system. It has a bias toward nominal growth and…
🤔Some economic thoughts: I see many debating whether we are RESTRICTIVE vs LOOSE. The Fed's own long-run dot says 3.3. They hiked to 3.875 and called it removing accommodation. One of those is wrong. Either way it's the wrong tool. This inflation came from public spending. Rates work on private credit. A hike doesn't produce…
For thirty years, the deal was simple: the internet provided the storefront, and you provided the labor. You searched. You compared. You clicked through ten tabs, filled the cart, typed your card number, and hoped the checkout page didn’t time out. Every online transaction ran on human effort. That era is ending. Not because we…
Structural debasement. The market begged for a hawkish Fed. Got the hike. Long end yields dropped. 📉 A week later it's rising. Now it's doing the math. 📈 Higher rates = bigger interest bill = more borrowing = more money creation. Be careful what you wish for. PS Current public debt at ~$40T + >…
Looks like they need a BIGGER boat. Structural debasement of fiat. Raising rates = raises the cost of money and borrowing. Now they need more of the "higher cost" money to pay for the higher costs. 🔁
