Tucker Carlson & Dollar Devaluation
I came across a clip from one of Tucker’s latest videos where he talks about the idea of “currency devaluation”. I’m glad someone with such a platform is discussing the effects of currency devaluation because it’s a topic that most people don’t consider when investing or planning for their future. But it’s one of the most insidious events taking place every single day in every developed country. It’s essentially a hidden tax on the people. One that is almost unavoidable - unless you’re investments are properly allocated which will be covered in this article.
You’ll hear the doomers talk nonstop about the “coming crash!” or how stocks are all going to zero. This completely ignores reality. As long as central banks are printing money and adding liquidity into the system, there’s a small likelihood that assets prices are going to have a cataclysmic drop. In fact, it implies just the opposite. To quote a past article of mine, “the market won’t crash, your money will”. A look at Venezuela proves this. The government printed boatloads of money and the stock market went vertical (in local currency terms).
Same thing is happening in the United States, albeit more gradually. This is evident in the past decade or so of stock market returns. The Federal Reserve used “easy monetary policy” (low interest rates, constant money printing) from 2008 to 2022. We can measure the amount of money printing by the growth in the Federal Reserve’s balance sheet. If the central bank is purchasing assets in the open market, they are growing their balance sheet. That is how “money printing” works in a nutshell. The Fed buys government bonds and adds liquidity that way.
This isn’t going to stop. The government is in far too much debt and is only spending more. Just as Tucker says in the clip, raising taxes is extremely unpopular, but debt needs to be paid somehow. So they print the money. Those are the only two ways to get out of debt: pay it back by using extreme austerity measures (cutting spending, Social Security payments, etc.) or inflate our way out of it by printing new dollars to pay back the loans.
So if the Fed is going to continue growing their balance sheet which effectively devalues the dollar by adding more money into the economy, then we need to outpace the growth in the Fed’s balance sheet. Only a very small group of assets have been proven to do this and as I’ve written before, 2024 could be a huge year in terms of liquidity being added to the economy.
I’m going to detail a couple of investments for my premium subscribers. Which ones work, which ones don’t (this may surprise many of you). Understanding dollar devaluation and positioning our portfolios to benefit from these policies is how we can beat the elites at their own game. Quick shout out to the premium subs who bought into Coinbase COIN 0.00%↑ after my signal was given out in a September article (here) - up over 60%!
Without further adieu, let’s dive in…