A reminder that if the US doesn’t reduce spending, inflation will be high for the foreseeable future. None of the sources of income are likely to increase significantly so need to reduce spending https://i.imgur.com/x322Mrl.jpg

🇧🇷🇺🇸-  Book: Making Things Think: https://holloway.com/mtt. Investor in Wander, Carry, Footprint, Merkle Manufactory (Farcaster), Dynamic, Paragraph.

All these pension funds that are buying long-term bonds are going to be underwater. 

Also thinking that the US is going to be fine because there are no better ways to save money is nonsense. Numbers don’t lie, foreigners are becoming sellers and not buyers of treasuries https://i.imgur.com/Uj7L6Tl.jpg

What would they buy instead? For one, they would buy Gold. That’s what Russia and China have been doing.  

The US weaponizing the financial system to go after Russia was a shot in its own foot https://i.imgur.com/BPt5ikj.jpg

Another possible scenario is to buy American tech stocks. That’s what the SNB has been buying. That’s what happened in the CARES act scare. A lot of entities were selling treasuries and buying American tech stocks. https://i.imgur.com/Aq301Lq.jpg

The last possibility is to buy bitcoin. That’s what El Salvador has been doing. I think this is the most novel approach and probably the smartest.

The US needs to figure out a path forward or the state and the dollar will not be in great shape!

Stop spending!

Here is a more clear picture of what’s happening with China: https://i.imgur.com/y19MJsw.jpg