Moms and Mimosas

It's Mother's Day... so let's get after it...

Good afternoon.

I hope you’re having a wonderful Mother’s Day.

I’ll keep it brief, as it’s a holiday, and because most people are still trying to figure out how and why the market keeps climbing higher.

I was reading Michael Howell today… as you know, he’s one of the three stools of economics and markets that I ground myself in. He covers liquidity. I listen to JD Henning on Momentum.

And I take the third leg of the stool on insider buying and technicals.

Based on all that, you should know that I called the selloff on February 21, stating that there would be a short-term bounce on March 13. I then called the next selloff on March 26 and, finally, indicated that insiders were buying on April 8. This isn’t that complex.

I follow money. I’m really good at this. I’m not going to be humble about it anymore.

But I also listen.

Howell’s got a hell of a take. He says monetary inflation, not "financial repression," better explains current economic conditions.

He argues governments aren't deliberately suppressing yields but are facing funding pressures that will force debt monetization.

The solution isn't avoiding bonds but buying inflation hedges like gold and Bitcoin, which he views as barometers of global liquidity.

He emphasizes collateral's crucial role in modern finance, with US Treasuries forming the backbone of the global financial system. He identifies growing tensions in repo markets and suggests policymakers face two paths: recession or quantitative easing.

Ultimately, he believes monetary inflation is inevitable, making borderless assets like gold and Bitcoin attractive investments.

I agree. I’m very long gold.

But I’m also willing to buy BTC during the next crisis… because… This entire financial system is stupid.

And so long as Bitcoin is still “priced in dollars” it’s still subject to speculation by people who don’t understand how bad the dollar debasement is going to get in the next five to nine years.

That’s all.

-G-