Dear Reader,
I'll call it like it is: U.S. debt has created an unsustainable economy.
In February 2023, the 10-year outlook for the US deficit was revised to a staggering $18.8 trillion by 2032. Considering the current federal debt of $31.6 trillion, we're headed for a colossal $50 trillion in debt by 2032. Like I said: unsustainable.
And who will own that debt moving forward? I expect the American public will be left holding the bag, a concerning prospect as countries like Japan prepare to offload US debt.
The lack of media coverage on the mounting debt and its consequences is troubling.
Americans already don't get a lot of bang for their tax buck and that could get worse. We could well be in store for reduced services, weakening infrastructure, a severely devalued dollar, or all of the above.
The government's strategy of printing, borrowing, and injecting capital will lead to a massive monetary base expansion and more inflation unless we can grow our economy sufficiently to counterbalance this exponential debt increase.
RISK: It's running wild in the markets right now, devouring portfolios. Get the chance to learn how to slash it here.
Historically, central banks have attempted to break free from the pattern of continuous monetization. If the Federal Reserve tightens its balance sheet further, markets may panic; they're utterly dependent on cheap money and debt.
Such a panic might force the Fed to "re-monetize" the economy, potentially to the tune of $7 trillion or $8 trillion.
There are other reasons for central bankers and their political masters to intervene.
One justification to pour more capital into the system is climate change and modernizing the grid, with significant amounts of money being allocated. If that's the case, they have a pretext to print money and inject it into the economy, purchasing assets in the process.
However, this is likely to drive the price of commodities, hard assets, and gold higher as capital pursues these assets.
Simultaneously, we aren't significantly increasing the production of certain resources to balance supply and demand. As an expanding economy with growing demand, a rising population, and a government committed to electrification, the prices of copper, lithium, and other assets will be affected.
Beyond American shores, this is a worldwide problem. What's more, protectionism and trade disruptions are coming back into style across the globe.
That's why investors should shift their focus to tangible commodities poised for high demand in the near future. We're on the cusp of a commodity supercycle that will bring wildly higher demand for these resources and intense competition.
This includes the companies that extract, refine, transport, market, and add value to those commodities. In terms of equities, investors ought to target well-managed companies with low credit risk, producing essential goods.
As banks prepare to expand their balance sheets, maintain low interest rates, and supply cheap, easy money, these funds inevitably find their way into all sorts of assets.
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Today's Momentum Reading
WORLD'S BIGGEST INDICATORS
Broad Market: Green
S&P 500: Green
Recap: The World's Biggest Indicator (Momentum) is Green... The market is currently attempting to recover from the early morning losses triggered by the underwhelming data from Tesla on Tuesday evening. As investors evaluate a combination of earnings and recent economic data that indicate an economic downturn is in store, the markets seem to be holding their ground. It's important to remember that the market is not the economy, and for now, keep dancing until the music stops.
What You Missed
Millions of people just found out how the ultra-wealthy make their fortunes.
Here's the video that revealed their secret.
Be sure to watch it before it's deleted.
I'm not surprised it went viral.
After all, the Department of Energy just announced they're planning to spend billions on remodeling our grids here in the states...
So it's no shock the company featured in this video could take the lion's share.
For the time being though, the founders have agreed to reserve a piece of their shares for a mere $4.38.
Today, only.
Soon enough, Wall Street could sweep in - and that's when you see potential buyouts.
That's why your timing is absolutely critical today.
The founders have informed my cohort that they're planning to shut their doors on new investors tonight.
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Stay Liquid,
Garrett
The post How to Profit in a World Drunk on Debt appeared first on Midday Momentum.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.