Home Creators Posts Import Register Favorites Logout
haven't archived this post yet. have a subscription? use the importer!

Content

Interesting graphic.

Let me try break it down

1) The Fed – This is the "push" or force that starts everything. The Fed runs U.S. money rules, like deciding interest rates or adding more money to the system

2) Lever: Inflation – This is the tool that makes the push stronger. When the Fed adds more money, it usually causes inflation. That means money loses value over time (debasement), and prices for goods and services increase. I found a non-USA Example here :D

3) Fulcrum: The Middle Class – This is the support point that takes all the weight ie the hit! In a real lever, the fulcrum handles the main pressure to lift something. Put another way the working people (the middle class) get hurt or squeezed by the bad sides of these money rules. They can escape if they own hard assets.

4) Load: Asset Prices – This is the heavy thing being lifted up. Things like stocks, houses, and other investments become more valuable due to the increased money in the economy. Thoes that own the rock do well.... those that do not - suffer.

Files

Previews only

Comments

Ho Ho Ho

Beautifully and efficiently put! All the tools the FED is using is about breaking the economy = middle class, every cycle they do that more people goes bankrupt.

ML Mov

In early life you have to find out what part of the equation you want to be in.? The problem is most of the people find out too late .

ChurrosMadrid

Hi James. I wonder. What would happened if the government or the fed didn’t do anything at all? No printing, no interviening… would everything explode or run perfectly??

ChangeAgent

when we say those that own the rock do well, isn’t that superficial? I mean, inflation reduces purchasing power. Asset prices go up but real value doesn’t increase.. right? On the other hand, middle class or low income earners who don’t have the opportunity to invest and own the rock fall behind, since wages lag price increases 😗

Jojira

Nice analogy.

satsovercents

Would probably mean revert to a lot lower prices as their is no manipulation or deflation of the currency. Not a good thing if you own a "rock"

iroc007

James is now a good time to buy a castle or wait still? NFA

Akunin

That's more because of EUDR, increased premium on Tropical oil prices, crazy Cocoa Futures, and increased tax road and regulations for transport within EU.

Michael

This image uses a lever analogy to describe how the Federal Reserve (The Fed) affects the economy. Here's a simple breakdown: Effort (The Fed): The Fed is the force pushing the system, using tools like interest rates and money supply. Lever (Inflation): Inflation is the tool or mechanism the Fed uses to move things. Fulcrum (The Middle Class): The middle class acts as the pivot point, bearing the pressure of the Fed's actions. Load (Asset Prices): Asset prices (like stocks or real estate) are what get lifted or increased. The idea is that when the Fed pushes with inflation, the middle class gets squeezed (or "crushed") under the pressure, while asset prices soar ("fly"). It's a critique suggesting the Fed's policies benefit asset owners more than the middle class.

CandyCoated

Buy in early to mid 2030s. Last of the boomers die in the 2030s; each owns 2 homes on average and that increases home supply. Demand will slow into the 2030s as almost all the Millennials have already bought their first home (they are at home buying age right now and that is why the huge demand for homes); the number of Millennials is as large as the Boomer generation! Unless we suddenly see an uptick in immigrant numbers again, we should see a fall in home demand in the 2030s. Also, in early 2030s, 1 BTC will be around $1 mil.

WizardofOz

Just wondering where I can find a course on options trading. I signed up to Schwab as I am I am interested in Leap options. Would like to dip my toe in the water. Thank you

Gone With TSLA

I don't like Nutella as too high in carbs , but loved the chart colors for sure. 😂

Hobbit

Go wizard ! Leaps are the easiest because you're just buying 100 shares on leverage (so you spend less cash on strong conviction over the next 1 or two or three years). Good place to start. Per James: Buy in-the-money, when there's a significant price drop (similar to timing buying the stock)