All Roads Lead to Inflation - WiM Weekly
All Roads Lead to Inflation - WiM Weekly
A weekly rundown of new WiM podcast releases and some food for thought
“All roads lead to inflation. That's historically the way every civilization has gotten out: they've inflated away their debts.” — Paul Tudor Jones
In a recent appearance on CNBC, Paul Tudor Jones addressed the elephant in the room: the debt trajectory of the United States. Based on data from the CBO, over the past 25 years, the U.S. federal debt-to-GDP ratio has risen from 40% to nearly 100% (other sources show current U.S. debt-to-GDP currently over 120%). Projections from the CBO estimate it will increase to 122-124% in the next decade, and if extended over 30 years, could reach 200% (conservatively speaking).
This cannot go on forever. Sooner or later, the treasury market will have to ask: is the proposition the U.S. government is offering to bondholders worth accepting?
PTJ offered up a simple thought exercise: Let’s say I'm making $100,000 per year. You've already lent me $700,000. I come to you and say, I'm going to pay everything back in 30 years, but between now and when I ultimately pay you back, I want to borrow an additional $40,000 every year. At the end of 30 years, I'm going to pay you back in full. Would you lend me the money?
This is the proposal the U.S. government is making to bondholders today.
U.S. debt now exceeds $35 trillion, while annual tax revenue is $5 trillion—meaning we owe seven times what we are expected to bring in this year. Meanwhile, we’re running a $2 trillion annual deficit, with no signs of slowing down in the foreseeable future.
In the WWE, there's a term called “kayfabe,” which refers to the unspoken agreement between wrestlers and the audience to maintain the illusion of what's happening in the ring. We all know it's scripted, we know it's a performance, but we're asked to play along. We're in an economic "kayfabe" right now. Not just in the United States—it's happening all across the world. Historically, financial crises can often percolate for years and blow up in weeks. When will markets reach the sudden realization that what's being proposed is unsustainable?
“The playbook to get out of this—you see it in Japan right now—they have 2% inflation, 30 basis points overnight; they don't want to raise rates. The playbook to get out of this is that you inflate your way out…If we're trying to stabilize debt to GDP, we want to run the most dovish monetary policy that we can without letting inflation become too much of a tax on the citizenry. So yes, all roads lead to inflation. That's historically the way every civilization has gotten out: they've inflated away their debts.”
Paul Tudor Jones is saying what Bitcoiners have known for years: Nothing stops this train.
Click here for the full Paul Tudor Jones interview on CNBC.
This Week:
WiM524 with Jimmy Soni
"AI is a performance-enhancing drug but it's safe, legal, available, and not expensive... AI is like having the world's best research assistant who never gets tired, never objects, who can go down any rabbit hole I want and who can look up everything that's ever been written on a topic in like 5 seconds and tell me if my one-paragraph explanation is correct. That’s pretty epic." — Jimmy Soni
Link to full episode: AI, Bitcoin, and the PayPal Mafia with Jimmy Soni (WiM524)
WiM525 with Zephyr Muze & Fractal Bounce
“The Church is seen as the bride of Christ symbolically in the Bible…When I read Rothbard describing the state, [I realized] that its qualities are almost identical to Satan…Having allegiance to any government on the earth is not something scriptural. The state is the enemy in the entire old testament. Revelation concludes with Christ striking down and destroying the nations. If the Church is the bride of Christ, then symbolically you can understand the state as the bride of Satan.” — Fractal Bounce
The full episode with Zephyr Muze & Fractal Bounce will go live today (10/25/24) at 3:00pm EST.
We’ve relaunched the Clips Channel! Subscribe for highlights from episodes and other exclusive content:
We’ve launched a WiM Telegram Community Channel! Join us here to engage with a group of deep thinkers, freedom maximalists, and Bitcoiners:
Next Week:
10/29 with Bram Kanstein
Bram Kanstein is an early-stage startup expert, digital entrepreneur, and host of the “Bitcoin for Millennials” podcast.
11/1 with Chris Sullivan
Chris Sullivan is an asset manager with a background in algorithmic portfolio allocations, risk management, equity, futures, market making, and derivatives trading.
Upcoming Events:
Join me on Jekyll Island and The Farm November 15-18 for an unforgettable experience.
This November 15-18th, 2024 (in what feels like a ‘coming full circle’ of sorts for me) I will be giving a talk on the nature and history of money at the Jekyll Island Club in the exact same room where the now infamous secret meeting was held to found The Fed way back in 1913. Then, we will be doing some fun activities on The Farm!
For those of you that don’t know about The Farm, it is a 1000-acre food, energy, and water independent community 45 minutes northwest of Jacksonville, FL. Words can hardly do justice to the beauty and majesty of The Farm, you’ll just have to come see it for yourself…
Click here to learn more about this event or email Will@okefarm.com today to apply to join us for this once in a lifetime trip!!!
The Art of Alpha Retreat: December 17-21
Join a select group of like-minded men along Mexico's stunning Pacific Coast for a transformative retreat focused on elevating mind, body, and soul. Set in a retreat center designed to train and recalibrate the nervous system, we’ll dive deep into mastering new skills and engaging in high-impact discussions.
The Art of Alpha is a transformational 5-day experience designed for men who want to push themselves mentally, physically, and spiritually. We’ll be diving into key areas such as biohacking, somatic practices, and embodiment techniques that are aimed at helping you achieve mastery over your mind, body, and soul.
What to Expect:
- a daily yoga practice to reunify the body and soul through a range of movements.
- an advanced meditation practice to bring you into the present moment suited for both beginners and experts alike
- the development of advanced meditation techniques to bring our fractured attention back into the here and now
- mitochondrial activation therapy to optimize energy production at the cellular level.
- daily cold plunges to discipline the mind and reduce systemic inflammation in the body.
- and from extreme cold, we move to extreme heat, via the ceremony of tamazcal. Tamazcal’s indigenous meaning is “house of steam” and it is a ritual that purifies the soul, spirit and body through exposure to intense heat.
- On top of this we will have advanced breathwork to reset the nervous system and safely access higher states of consciousness.
- And throughout the retreat you will be receiving workshops from a range of specialists in fields ranging from neurobiology to nutrition.
- All the while, we will be eating 3-meals per day of delicious anti-inflammatory foods prepared by our in-house chef. I am extremely picky when it comes to food, and honestly this was some of the best food I’ve ever eaten.
This retreat is specifically designed for a small, curated group of men who are committed to growth and personal transformation. Whether you’re a high achiever looking to deepen your understanding of yourself, or someone seeking to unlock new layers of your potential, this retreat is for you.
Learn more and apply here: https://www.breedloveevents.com/
Sponsors:
The Farm at Okefenokee (mention BREEDLOVE for $21,000 off a custom cabin): https://okefarm.com/
Heart and Soil Supplements (discount code BREEDLOVE): https://heartandsoil.co/
In Wolf's Clothing: https://wolfnyc.com/
Tuttle Twins - Teaching Kids Critical Thinking: http://angel.com/breedlove
Mind Lab Pro: https://www.mindlabpro.com/breedlove
Kalshi: https://kalshi.com/breedlove
Emerge Dynamics: https://emergedynamics.com/breedlove
Products I Endorse:
EFANI: Protect your mobile phone from SIM swap attacks: https://www.efani.com/breedlove
Noble Protein (discount code BREEDLOVE for 15% off): https://nobleorigins.com/
The Bitcoin Advisor: https://content.thebitcoinadviser.com/breedlove
Lineage Provisions (use discount code BREEDLOVE): https://lineageprovisions.com/?ref=breedlove_22
Colorado Craft Beef (use discount code BREEDLOVE): https://coloradocraftbeef.com/
Good stuff! I'd say the vast majority aren't even taking part in the Kayfabe illusion. Most don't even ask the questions. And if they peak under the hood, they see legacy institutions with big seals and people who wear ties working there and assume everything is A-OK.
that is correct!! the current economic theories are all based on inflation, except for BITCOIN!