The money supply in the United States is accelerating again after a period of contraction, which will lead to a problem with inflation.

“and right now the the money supply has been ticking up. It's been accelerating after contracting. It contracted from 2022 down and until bottomed out this this past summer and and it started accelerating again.”

Inflation is caused by excessive monetary and fiscal expansion occurring at the same time as supply-side shortages, creating a situation where too much money chases too few goods.

“Inflation's very simple it's too much money chasing too few goods okay and we have both sides of the equation going on right now on the supply side on the good side we've got shortages we've got the ports backed up we've got paying people not to work we still have the 2 trillion of coveted relief”

Government efforts to sustain asset prices through debt and money creation are directly responsible for rising housing costs and economic inequality in the US.

“This policy that they've adopted of continuing to have more and more debt and pay for money creation has pushed up home prices so high that so many people just can't afford to to live in a home anymore. And this has caused homelessness, this great income inequality between the the wealthy.”

The practice of central banks printing money to purchase their own government's debt is an irrational, self-defeating policy.

“So if foreign countries don't want to buy your debt and your central bank decides we're going to print more money and buy our own debt with it, which is what what we're doing. Wouldn't the people doing that stop and say, "Wait a second. This sounds like an electric windmill. Like what are we doing h”

The Federal Reserve's expansion of the money supply and credit is the true definition and cause of inflation.

“It's the government that expands the money supply. That's the inflation. As a result, people have to raise their prices.”

The recent economic data shows hot inflation and robust jobs, which will prevent the Federal Reserve from cutting interest rates.

“Kills Fed rate cuts because jobs are hanging in there and inflation thanks tariffs I hate the tariffs is is popping off.”

Market pricing of three Federal Reserve rate cuts this year is excessive.

“I'm with Mike. I'm with a lot of people. I think the pricing of three Fed cuts this year is much too many.”

There is no economic case for the Federal Reserve to cut interest rates given the current strength of the economy and inflation levels.

“I think there is no economic case, none whatsoever, for cutting rates.”

Monetary policy should be set above the level of inflation to ensure stability and restrict excess.

“I believe that monetary policy should always be above the level of inflation. If I'm going to lend you money, I should get back more than inflation. Restrictive enough that it's not encouraging more inflation.”

He claims the Federal Reserve is unlikely to cut interest rates while core PCE inflation remains at 3 percent.

“And so you know they want to look at what's the the trend level and if the trend level is 3.1% it was 3% in the um in December which is the last reading that we got for PCE then that's really not a level at which they would feel comfortable cutting interest rates.”