Even though the U.S. dollar is losing considerable relevance in international trade and settlement (FX reserves), U.S. asset allocators and the general population remain asleep at the wheel.
The Russian war has thrown a monkey wrench into the world order. It is now not only shining a light on FMT’s fundamental research in these massively undervalued sectors, but it is also catalyzing these assets forward and creating supply issues that are further exasperating their undervaluation.
Inflation is the only answer to deal with these insidious and record national deficits in any reasonable way. Inflation rates might not seem reasonable today, but it is a much better option than a global crash.
Over the last 20 months, the U.S. money supply (M2) has skyrocketed by 40% because our currency was printed into existence unlike at any other time in our history. This catalyzed crypto adoption (digital assets and applications) over the last year-and-a-half in a big way.
The prior decade (2009-2020) of extremely low inflation that was perpetuated by the housing depression and cheap oil is over.
The markets have binged on liquidity since COVID-19 and the Federal Reserve finds itself in a very difficult position now.
Over 10x (1,000+%) is how much the Federal Reserve’s balance sheet has grown since 2009. The Fed is going to try to end this parabolic balance sheet expansion by the summer of 2022, which will ultimately be unsuccessful.
Hertz Global is transforming their entire fleet into electric vehicles (EVs), which is congruent with an order for 100,000 Tesla EVs. Entire industries are going to be destroyed across the entire transportation supply chain.
In less than two weeks, history is going to take place. Bitcoin will be an official legal tender in El Salvador, and residents will be able to live in a Bitcoin world.