Did you hear the great news that the United States is now at a 100 37 percent debt-to GDP ratio, which means that for every dollar that it produces $1.37 of debt, which is obviously a horrible thing because anytime you’re consuming more than you’re producing. Is not sustainable, especially when you’re having quantum leaps and the amount of debt that you take on is relative to the amount of production that you have.
You can see from 2012 we are on a 1 to 1 ratio. Now we’re at 100 37 percent of GDP we now have in debt, and an even crazier thing is the amount of money that we’ve been printing over the past 3 years. We’ve increased the money supply by over 40 percent in the United States just in the last few years. What is that that causes massive inflation rates? Most people never even look at this data and understand what’s happening this D.
Raise In massive inflation rates
Bases the value of your currency rights if you’re holding the U.-S. Dollar Well, now when you go buy goods and services it costs a lot more. That’s exactly what we’ve been seeing with inflation rates, so we’re at a 40-year high at 9.1 percent right now of inflation. But to be honest, the CPI is not even accurate because they include things like museum tickets, the cost of milk and the cost of a funeral, right, and it’s just a big basket of goods at 2 people get together and decide all right. This is what works.
We’re counting for inflation, but if you go look into other important things like, I don’t know, maybe energy, how much does it cost for people to move around the world? How much do you know, does it cost for goods and services, and then, you know, get what they need from two different locations? Well, energy is at a 41 percent inflation rate, and there are multiple classes of different goods and services that are well over 50 percent inflation, well over the 50 percent inflation rate, which action rates, which is absolutely wild. The reason that’s happening is primarily there are some supply chain things that are also occurring right now, but primarily is the amount of money that we’re printing.
Stock market saying hitting all-time highs
Cents coming off the gold standard in the 19 seventies, so every. Was looking at the stock market saying oh wow, we are hitting all-time highs. Cow exponential growth has been in the 19-eighties. We wow, well, what about the show? You probably should be really shocking to be honest because most people never even think about this simple fact that what we’re looking at is the S. and P. 500 which is the largest 500 companies inside the United States right in as the nominated in Dollars okay, so. S.
Dollars okay, so when we devalue the US dollar it makes it easier for that asset to gain momentum and appreciate because the denominator is going down so if we valued the S. and P. 500 but took out the amount of money that we’ve been printing or at least you know value to correctly based on the proportion of money that we’ve been printing over the past 50 years what with this chart look like well here’s what it looks like this.
You can see since the 19-seventies we’ve been trending upward slightly. We had a massive move in during the tech bubble in the 2000 race where the stock market was massively overvalued, and we’re in this included. You know, this is you. S. stocks divided by the M. 2 money supply. That wasn’t what we were just looking at here, all right. When you can see then we just had a downtrend since then, and even though if we look at that, you know the truth to thousands.
Right ads, you know, may 2000 at its very peak. We’re at 1500 in the S. and P. And now we’re at 3945. If you account for the money that we printed right after the debasement of our currency now, we’re well, well below the highs of the early 2 thousands. So again, Hey, is the stock market going up or is the value of our currency just going down? You let me know in the comments section below. I want to point out 1 other thing, too, that, you know, we’re out of the stock market right now.
It’s only 12 percent since we were out in the pandemic lows, so we look at the pandemic lows right here. I’ll tell you how big of a difference it is 12 percent. When you account for the debasement. It relates only to 12 percent since it is like a 78 percent move from the bottom, but we need to pull from the other way. So we’ll go to the bottom. It’s a 44 percent difference, so we’re talking about a 32 percent difference because again, the 40 percent increase in the money supply that we’ve had over the past few years, so that’s what people are thinking about, is okay.
Stocks are going up!
A. R. Stocks are going up right now because they’re more valuable. These companies are more valuable, or stocks and other assets are going up because the U.-S. Dollars going down in value, this is why the wealthy, middle, and middle their get wealthier in the get. The gap between the poor and middle class grows and deepens over time because the wealthy people understand I have to invest my money somewhere that you can account for. You can outperform the devaluing debasement of the currency that I’m holding, so you know, the, poor, middle class, so they just sit in cash. I guess what happens, is they get crushed over time because of this, because of all the money printing, and they don’t understand this simple fact, which is if you go here you were at 30.5000000000000 national debt appear if you guys and now.
And then if you look at the M. 2 money supply right now, really go for this like a 4.3 act from early 2000 to where we’re at now, so we have 4.800000000000 or 20000000000000000, which is just mind-boggling. So understand what is happening to your currency. Understand what is happening in real time. And by the way, this is not just in the U.S. This is in multiple other countries as well as the US. As one of the least worst. If you look at other countries like that, there’s some intense inflation turkeys at 70 percent and this is just and the G. 20. If we look at the world, we got some countries that are that are just ridiculous the amount of inflation they have right now, it is.
Absolutely astonishing let’s go to I mean we’ve got 11 on at 211 percent Zimbabwe at 192 percent sit down at 149 percent I ran at 52 percent I mean can you imagine losing 50 per to 52 percent of the value of your currency in one year because the government just simply can not stop printing so much money and because of other things that are uncontrollable like supplies supply chain issues this is why I really believe that you know while it may not happen instantly tomorrow.
I think over time we’re going to see commodities specifically precious metals and commodities like bitcoin explode in value because people understand I have to get out of these fiat currencies because they’re just going to continue to debase and the only way to actually protect all the value that you’re working for likely you know the majority of your life is that by scarce assets that are likely to outpace the rate of inflation all rights the other guys in this video let me know in the comments section below really curious as to what you think about that chart because the when I saw this the other day it blew my mind and if you don’t believe me go to macro micro.
Me is what it is and you can look at this chart for yourself or I let me know what you think about this chart in the comments section below are stocks really going up or asset prices really going up or is is the value of the U. S. dollar that these assets are the nominating going down