In the mid to late ’90s, the Information Age was dawning and promising a “new era”. Then, Fed chairman Alan Greenspan feared deflation and opened the monetary floodgates.
As a result, tech got cheaper, productivity soared and wages climbed for the skilled.
Fast forward three decades.
Fed chair nominee Kevin Warsh fears deflation again, but even more so at the hands of artificial intelligence (AI). Before May 15, the Senate will confirm his spot on the board and, with it, usher in the next era… of money printing.
The money supply has increased by $9 trillion during Jerome Powell’s tenure as Federal Reserve Chairman. (Source: Charlie Bilello via X)
Since Greenspan assumed the helm in 1987, the Fed has met every crisis – political or economic – every hint of bank failure, every virulent strain of flu with lower rates and a higher Fed balance sheet.
Under Jerome Powell, Fed Chair since 2018, the money supply increased by $9 trillion.
President Donald Trump, facing stiff odds that he’ll lose a majority in the House of Representatives in November, wants to force the “wealth effect” into high gear for voters. Should Kevin Warsh be confirmed and persuade the Fed board to his point of view, we’ll see two rate cuts this year.
The stock market will love it. Consumers, just as they did in the 1990s, will feel confident, borrow and spend.
That’s the playbook on the table.
And with it, a continued rise in the money supply. The budget deficit and national debt be damned.
Treasury Secretary Scott Bessent will refinance the nation’s debt on the short end of the curve and encourage more market share for the U.S. dollar and Treasurys through digital assets and tokenization.
As we detailed yesterday in Grey Swan Live! with Global Intelligence’s Jeff Opdyke, gold, silver, rare earths and natural resources are still at the beginning of a retail bull cycle and will benefit enormously from the AI buildout and this next era of money printing.
We’ve identified and selected specific trades to get into during the “Profit Window” between now and May 15, when Warsh is expected to begin the Warsh Era at the Federal Reserve. For a quick review of the trades, click here.
Likewise, in Grey Swan Pro, Andrew selected a commodity ETF that provides monthly income and has some upside to gold.
If you’re interested, you can upgrade your own Grey Swan membership to Pro status by clicking here.
~ Addison
P.S. Yesterday’s Grey Swan Live! introduced Jeff Opdyke.
Jeff is a former Wall Street Journal writer who has moved not just to heavily invest overseas, but also to live overseas.
Today, Jeff’s trading and writing Global Intelligence Letter from his bolt hole in Portugal.
We got down and dirty with Mr. Opdyke on his strong views regarding life in the US political and investing horizon between now and 2028.
His views have influenced his radical decision to move overseas and focus on investing outside a weaker U.S. dollar and a renewed emphasis on gold and silver, rare earths and energy investments to weather stormy skies ahead.
