What happens when the money supply grows too slowly or too quickly? From gold-standard deflation to QE-driven inflation and inequality, we trace the lessons of monetary history, and what we can do today to protect ourselves in an age of infinite money. Topics covered include: Show Notes Distribution of Household Wealth in the U.S. since 1989—The Federal Reserve M2 (M2SL)—FRED Good Versus Bad Deflation: Lesson from the Gold Standard Era by Michael D. Bordo, John … [Read more...]
538 Plus: More on the Fed, Inflation and the Money Supply, and Analyzing Cryptocurrency Treasury Companies
In Plus episode 538, we explore various inflation measures, what causes inflation, and the relationship between the money supply and inflation, as we consider whether the Federal Reserve Open Market Committee will cut the Fed's policy rate next week. We also analyze the investment case, or lack thereof, of Bitcoin and Ethereum Treasury companies, publicly traded firms that hoard cryptocurrency. Become a Member If you would like to listen to this episode of Money For the Rest of Us … [Read more...]
484 Plus: ETF Family Size and a Review of QE’s Impact on Inflation and Asset Prices
In Plus episode 484, we answer a member's question on whether it is better to invest in larger ETFs and with larger ETF families. We also review quantitative easing and quantitative tightening. We look at how the per capita increase in the money supply due to QE led to a big jump in inflation and asset prices, including for houses and stocks. We also look at the per capita increase in the national debt. Become a Member If you would like to listen to this episode of Money For the … [Read more...]
462: Now Should You Buy a Bitcoin ETF?
We explore reasons for buying Bitcoin using one of the new Bitcoin ETFs. We also consider the risks. Topics covered include: Show Notes Statement on the Approval of Spot Bitcoin Exchange-Traded Products by Chair Gary Gensler—SEC Coinbase at the Center of Bitcoin ETF Draws Envy and Risks by Yueqi Yang and Olga Kharif—Bloomberg Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1—US Federal Reserve Episode Sponsors Long Angle is a private … [Read more...]
431: The Long-term Bullish Case for Gold
Why you should allocate a small percentage of your assets to gold. Topics covered include: Show Notes Central banks load up on gold in response to rising geopolitical tensions by Daria Mosolova—The Financial Times Above-ground stocks—Gold Hub Central bank holdings—Gold Hub Does the Federal Reserve own or hold gold?—The Federal Reserve Trey Reik—LinkedIn M2 and Components—FRED Gold Charts R Us Episode Sponsors Hello Fresh – Use code 16david for 16 free … [Read more...]
404 Plus: More on Bonds, Interest Rates, Monetary Velocity, and Inflation
In Plus Episode 404, we discuss paying down a mortgage early now that interest rates are higher. We answer a member's questions on how to invest college savings to be used in seven years or less. We revisit selling intermediate-term bond funds and ETFs. We revisit David's decision to buy and sell PFIX. Finally, we look at what monetary velocity is, why it is increasing and does that suggest inflation will stay high for longer. Become a Member If you would like to listen to this … [Read more...]
355: Which Money Is Crazier: The U.S. Dollar or Bitcoin?
We compare the U.S. Dollar with Bitcoin on their key attributes to determine which is better for transactions and preserving wealth, which is most absurd and which has serious flaws. Topics covered include: Show Notes Federal Reserve Statistical Release: H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks, August 19, 2021 Check Processing—Federal Reserve Bank of New York Gold Reserve Act of 1934—Federal … [Read more...]
342: Is Another Great Inflation Coming?
How today's inflationary environment is similar and different from the great inflation of the 1970s. What are the best assets to protect your portfolio if the next great inflation is here. Topics covered include: Show Notes A Complete Guide to Understanding and Protecting Against Inflation—Money For The Rest of Us Great Inflation 2.0? Lessons from the 1970s by Simon Macadam—Capital Economics When it comes to inflation, how much fortitude does the Fed have? by Sebastion … [Read more...]
336 Plus: A Simple Money Supply, Money Creation Analogy
In Plus Episode 336 for the week of March 27, 2021, we discuss some new site additions for Plus members. We also explore an analogy to explain under what circumstances the money supply and purchasing power increase and under what circumstances they don't. We use the analogy to explain what is happening currently and under what circumstances it could lead to higher inflation. Finally, we review why Hoisington Investment Management Company believes inflation will stay low and interest … [Read more...]
336: Own What Is Real
There has never been this much money in the world. Now is the time to own real property. Topics covered include: Show Notes The Power of Gold: The History of an Obsession by Peter L. Bernstein IRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue Service Legal Tender Status—U.S. Department of the Treasury India to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—Reuters Executive Order 6102—Requiring Gold … [Read more...]
