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Ripple Effect

It’s All About that Monetary Base

Loading ...Addison Wiggin

August 19, 2025 • 1 minute, 36 second read


goldHousingvaluation

It’s All About that Monetary Base

Despite a frozen real estate market, home prices remain near record highs. Your local market may vary, but affordability is still out of reach for many.

Fortune noted over the weekend that homebuyers in their 70s now outnumber those in their 30s. It’s part of a demographic trend.

By this age, Baby Boomers owned 21% of the nation’s wealth. Generation X, a little less at 14%. But, Millennials, the first of whom are now turning 40, own just 4.3% of the national bounty.

That stat alone should raise eyebrows.

But the bigger issue isn’t demographics — it’s the system we’ve lived under since August 15, 1971.

Once the dollar was removed from gold, asset prices — homes, stocks, everything — have been driven higher not by productivity gains but by the steady erosion of purchasing power.

Turn Your Images On

Priced in gold, not dollars, homes roughly what they were in the 50s and 80s.  (Source: X/Twitter)

Homes priced in gold:

  • In 1950, the middle-class home cost about $8,000—or 150 ounces of gold.
  • Today, 150 ounces of gold equals roughly $510,000. That’s more than the national average home price of $421,000.

Gold continues to hold purchasing power across decades and currencies. Whether measured in houses or in stocks, the message is the same: the dollar loses ground, gold does not.

Yesterday, for the first time, we saw an independent gold survey suggesting that gold would match the trend we see in gold prices, sending prices still higher from here.

~ Addison

P.S. Still, the Fed is expected to cut rates in September. With lower rates, mortgages would trend lower and the housing market may thaw—but only because debt gets cheaper, not because the economy is stronger.

Such a move risks kicking off a “most terrifying bull market” in stocks, which sends those valuations into the stratosphere before they come crashing down to earth.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)


The Grand Realignment Gets Personal

January 13, 2026 • Addison Wiggin

Sunday night, Powell addressed the probe head-on in a video post — a rarity. He accused the White House of using cost overruns in the Fed’s HQ renovation as a pretext for political interference.

The White House denied involvement. But few in Washington believed it.

What followed was bipartisan condemnation of the investigation. Greenspan, Bernanke, and Yellen co-signed a blistering rebuke, warning the U.S. was starting to resemble “emerging markets with weak institutions.”

The Grand Realignment Gets Personal
A Rising Sign of Consumer Stress

January 13, 2026 • Addison Wiggin

Estimates now indicate that the average consumer will default on a minimum payment at about a 15% rate – the highest level since a spike during the pandemic lockdown of the economy.

President Trump’s proposal over the weekend to cap credit card interest at 10% for a year won’t arrive in time to help consumers who are already missing minimum payments.

Not to fret, the other 85% of borrowers continue to spend on borrowed time. Total U.S. household debt, including mortgages, auto loans, student loans, and credit cards, reached record highs in late 2025, exceeding $18.5 trillion. This surge was driven partly by rising credit card balances, which neared their own all-time peaks due to inflation and higher interest rates.

A Rising Sign of Consumer Stress
Protest Season Amid the Grand Realignment

January 12, 2026 • Addison Wiggin

There’s an old Wall Street maxim: “Don’t fight the Fed.”

This year, you could add a Trump corollary.

A wise capital allocator doesn’t fight that storm. He doesn’t argue with it. He respects it the way sailors respect the sea: with preparation, with humility, and with a sharp eye for what breaks first.

In 2026, the things that break first are the stories. The narratives. The comfortable assumptions.

Protest Season Amid the Grand Realignment
Breaking: Government Budgets

January 12, 2026 • Addison Wiggin

Total municipal, state and federal debt service costs soared to nearly $1.5 trillion in the third quarter of 2025. Debt’s easy to accumulate when rates are low. Trouble is, you are obligated to refinance them even after rates go up.

It’s also a key reason why the Trump administration is demanding lower interest rates – even if it means reigniting inflation.

Breaking: Government Budgets