Financial Market Commentary

I’ve been corresponding with a friend about the dangers of socialism under the Biden administration and thought I would share my latest reply.

I must agree with you on the dangers of expanding socialism. Sadly, the GOP had their turn at bat from 2017-2018 when they controlled all three branches of the federal government, but never took a serious look at any of the most expensive socialist entitlements: Medicare, Social Security and Quantitative Easing. It was borrow-and-spend as usual, and predictably, retirees and bankers continued feasting at the public trough while the deficit soared. And I couldn’t believe it when Trump and the GOP-controlled Senate went along with the big stimulus giveaway earlier this year. What were they thinking? Another $3 trillion down a rat hole, as Grover Norquist would say. Even worse, just as conservative theory would predict following a government handout, the lazy liberals are filing for unemployment again. New unemployment claims have risen for the past 2 weeks — it’s an outrage. I predict their next ploy will be to complain that they can’t pay their rent. Don’t they understand the economic principle of creative destruction? They should just move to California with the rest of the homeless and be thankful for the warm winters and the blessed freedoms enshrined in our constitution.

But not to worry, elections have been swinging red/blue, red/blue for decades, so the GOP should get another chance at abolishing these abominable socialist programs in 4 short years. With Trump or Pence back in the White House they can finally ram Judy Shelton in as Fed President and she can restore us to the gold standard. I’m confident she will easily solve the pesky problem of reducing the M2 money supply by $14.5 trillion, give or take, since M2 is now 30 times greater than the market value of all U.S. gold reserves (about $500 billion), and the value of the two accounts must be equal at all times under the gold standard. In the long run people will agree that the global depression caused by the sudden contraction of the money supply is a small price to pay for finally being able to live like free people, the way the founding fathers intended.

Best, Rob.