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 acts as a non-governmental cartel that maintains its influence through central banking and taxation, which undermines the currency.

“It's not federal and it's not, you know, it doesn't have any reserves. It's basically a a cartel and it's owned by member banks and a lot of the member banks are banks you're aware of.”

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.”

The United States will be forced to implement quantitative easing to stabilize debt as rising interest rates create an unsustainable financial environment.

“Once the 10-year Treasury yield gets to 4.6 4.8%. There isn't going to be a choice about having to do QE. It is going to have to happen because the alternative is we will go into a debt death spiral uh and take the rest of the world with us.”

The Federal Reserve may soon be compelled to return to expansionary monetary policy to address emerging liquidity needs in the market.

“In other words, folks, we are going back to the days of the money printer.”

The Federal Reserve's use of interest rate hikes to combat inflation is a tool that risks triggering a severe economic recession.

“if they keep raising which I expect they will uh they may throw this economy into a very severe recession which point they may have to cut rates not because it's in the Playbook but because you know unemployment goes up to 7%”

The Federal Reserve is unlikely to cut rates at its December meeting, but will likely resume cutting rates in January due to a slowing economy.

“Morning Star's chief US economist did just change his forecast. So, he is now looking for the Fed to skip cutting rates at the December meeting. However, he is expecting an ongoing downward trend in payrolls will end up forcing the Fed to resume cutting rates at the January meeting.”

The Federal Reserve will likely adopt an easing bias to address the struggles of the lower economic segment, which will support a continuing bull market.

“What they're going to do is respond to the lower K and allow that upper K to continue to ri rise. And so in our world, how do you translate our world? You translate that to the bull market continues. The Fed is supporting it.”