"Nice to have you aboard the USS Armageddon"

Sean Foo on the US monetary-fiscal dilemma

Singaporean Sean Foo does a nice job summarizing the conundrums facing the US monetary and fiscal authorities, concluding that Trump will have no choice but to inflate the debt away.

In financial terms, Armageddon comes when the world stops buying US Treasuries…or does it? Martin Armstrong suggests that we scrap the income tax and just print the money we need. So long as foreign buyers accept the dollar in trade—and through Eurodollars, the USD has acquired a life of its own out in the world, even being supported by China’s issuance of dollar-denominated debt—who cares?

Armstrong suggests clearing the outstanding debt by giving everyone credits redeemable in US private debt and equity—a US investment boom!

On the other hand, the Neocon plan to defend the dollar is to create a world war to drive scared assets into the cleanest shirt in the dirty laundry, so to speak. “The Hegemon” reaps steep gains from waging war abroad in the short run.

2030, here we come!

Meanwhile, central banks are stocking up on gold, but a return to the gold standard is impossible without global deflation.

I will update my “animal spirits” model with the unemployment report next Friday. The last update is here.

---

To my small but elite group of readers, thanks for your support, and may 2025 be a good year for all of us!

Pray for peace! We are heading into a global revolution and spiritual awakening!