The National Debt Promises You Lots Of Investment Opportunities
Today’s letter is brought to you by Espresso Displays!I normally work on my desktop computer and am hyper productive. The second that I leave my desk, I lose my productivity on a laptop. So I started to use a second screen and it seems to have fixed the issue. It took awhile to evaluate many different screens — Espresso Displays was by far the best one. I use it every day. I can’t imagine working from my laptop without it now. They are lightweight, thin, and look like Steve Jobs designed them himself. Any reader of The Pomp Letter who orders one this week will get a great deal. Highly recommend! To investors, The national debt continues to be a topic of discussion for finance leaders around the world. Whether the conversation is happening at Davos or at The Future Investment Initiative Institute, there is a growing concern that the debt has become unsustainable. I spent last night digging into the current state of the national debt and here is what I found. First, we have officially crossed over $34 trillion. That is a big number. We are now adding more than $100 billion per month to the already outrageous situation. According to the US government, “over the past 100 years, the U.S. federal debt has increased from $403 billion in 1923 to $33.17 trillion in 2023.” That chart is wild to see, but it doesn’t even include the almost $1 trillion of additional debt since the end of Q3 last year. Another way to look at the debt is as a percentage of GDP. We can see that the country was able to swing this ratio in a positive direction for much of the 1960s and 1970s, but since the 1980s we have been headed in the wrong direction. Today the debt-to-GDP stands at more than 120%. The issue here is not just how big the debt is, but also how expensive it is to hold this debt. The US government is now paying more than $1 trillion per year in interest payments. This number has gone parabolic in the last four years. With interest rates remaining high, there is no relief in sight either. The higher this interest payment, the worse off Americans are. The Peter G. Peterson Foundation writes “higher interest costs could crowd out important public investments that can fuel economic growth — priority areas like education, R&D, and infrastructure. A nation saddled with debt will have less to invest in its own future.” The organization also highlights the fact that the government is predicting things are only going to get worse in the next decade or so — “The Congressional Budget Office (CBO) projects that the U.S. government will run trillion-dollar deficits over the next 10 years, resulting in a cumulative deficit of $20.3 trillion between 2024 and 2033.” This is the new normal. A highly indebted society that will have to borrow more money in the future to fund the payments of the existing debt. Add in the fact that the US needs more debt to fund the multiple proxy wars overseas, to address the crisis at the southern border, and to fulfill the increasing demands from the various entitlement programs that have been promised to aging Americans. These facts guarantee two things — the government will continue to seek new ways to increase taxes on its citizens and the government will debase the currency over the long run to monetize the debt. Both of these are negative things in my opinion. But they may as well be written in stone at this point. The government has no other choice. As investors, we must spend time thinking critically about how to allocate capital to benefit from these trends. It will likely be the difference between driving attractive performance or not. There will be various stocks to buy or store of value assets like bitcoin, but there will also be tons of private market opportunities like senior citizen living centers that are paid by the entitlement programs. The world is changing. Stay on top of the facts so you can predict where value will accrue. Evolve or die. Hope you all have a great start to your week. I’ll talk to everyone tomorrow. -Anthony Pompliano Today’s episode is a joint podcast with the team at Reflexivity Research and the team at Elementus. From Reflexivity, we have Will Clemente (Founder). From Elementus we have, Max Galka (Founder & CEO) and Alex Mologoko (Head of Research). This conversation covers a brand new massive report covering year-in-review of 2023 of everything that happened on-chain. Topics include bitcoin rally, open interest, wallet activity, inscriptions, stablecoins, and more. Listen on iTunes: Click here Listen on Spotify: Click here On-Chain Year In Review for 2023Podcast Sponsors
You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. Invite your friends and earn rewardsIf you enjoy The Pomp Letter, share it with your friends and earn rewards when they subscribe. |
Older messages
On-Chain Audits & Rules Are Going To Dominate Future
Thursday, January 25, 2024
Listen now (4 mins) | Today's letter is brought to you by Frec! The wealthy have used a secret strategy to make money and save on taxes for decades — direct indexing and tax-loss harvesting. The
The New Players Won't Act Like The Old Players
Wednesday, January 24, 2024
Listen now (2 mins) | To investors, The new capital flowing in the crypto industry from Wall Street and traditional investors will not behave like the capital that has been here for years. Let me
Price Is Trying To Distract Everyone
Tuesday, January 23, 2024
Listen now (3 mins) | Today's letter is brought to you by Espresso Displays! I normally work on my desktop computer and am hyper productive. The second that I leave my desk, I lose my productivity
What If The Fed Already Won The Fight Against Inflation?
Monday, January 22, 2024
Listen now (5 mins) | Today's letter is brought to you by ResiClub! ResiClub is the leading publication for the residential real estate market. Housing affordability is the worst that it has been
Podcast app setup
Sunday, January 21, 2024
Open this on your phone and click the button below: Add to podcast app
You Might Also Like
Low competition niches with high traffic potential
Friday, July 26, 2024
1.2 million visitors with a DA of 9!?
Mindsnack Ep. 6 - 4 Things That Have Helped Me
Friday, July 26, 2024
do these things.
SearchGPT Announced! (The End of Google?)
Friday, July 26, 2024
Yesterday, OpenAI announced SearchGPT, an AI-powered search engine that is a direct competitor to Google search. What does that mean for Google? What does it mean for publishers? This is the first
🎙️ Find That Pod #272
Friday, July 26, 2024
Let's discover some awesome podcasts together.
Temu may be a worthy Amazon competitor after all [Crew Review]
Friday, July 26, 2024
Q4 is approaching fast. Take advantage of the sales season and get more funding for your e-commerce business. We'll show you how on July 30, 2024 at 9:30 AM (PST). Hey Reader, It may not have the
Bitcoin 2024: All Eyes on Nashville
Friday, July 26, 2024
Marathon Digital Goes Full HODL with $100M Buy
Digiday Awards: One week left to submit your entry
Friday, July 26, 2024
Have your work viewed by judges from Google, Chipotle and more
You don’t need more capital, Reader. [Webinar]
Friday, July 26, 2024
Hey Reader, Most successful online entrepreneurs have taken risks, ie, loans, to scale their businesses to the next level. But how do you know when to borrow more money and when to hold off? This July
Influence Weekly #347: TikTok’s Secret Plan To Shake Up European E-commerce: What 40 New Hires Reveal
Friday, July 26, 2024
A Fashion Influencer Sues, Alleging a Creator Copied Her 'Aesthetic
Weekly Dose of Optimism #104
Friday, July 26, 2024
HIV Prevention, AI Tsunami, Statecraft, GLP-1 Again, Olympic Exoskeleton ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏