Have you ever experienced the feeling that the world is spinning faster than any point in your living memory? If not, you haven’t looked at the right data. In today’s new economic order, holding genuine tangible assets is undesirable. it’s necessary. As the Fed is cut to sustained inflation and deficit spending is at $2 trillion a year, it is a letter, warning, your assets or left behind by Global Capital Market commentator Kobesisi.
Rate reduced to 2.9% + core PCE inflation: 30 years ago
For the first time in 30 years, the US is staring at a barrel of interest rate reductions, while core PCE inflation is above 2.9%. We evaluate mitigation in environments where prices remain stubbornly high.
It is a sign of how hopeless a desperate policymaker is to stop deeper pain in the real economy, even if there is a risk of robbing the embers of sustained inflation. Historically, central bankers have waited for inflation to fall with convincing before turning the doish. now? Everything is holding onto it.
The message is clear. If you’re sitting in cash, silent inflation thieves are nibbling at your future expenditures.
Rapidly deteriorating the outlook for the US labor market
The US job market is declining. Announcements of layoffs from Blue Chips and Silicon Valley Darling are piled up. The rug is being pulled from under the workers’ feet as new openings slow and signs of “need help” are suddenly not common.
If the job market is sour, cash-on-hands can’t reduce it and could become a buffer that requires ownership of the asset. Anyway, as value investor Mike Alfred points out, the wealthiest people in the world are entrepreneurs and investors.
“Almost anyone will get rich on pay.”
Deficit spending exceeds $2 trillion per year
It almost feels passel to mention American balloon deficits, but the numbers simply don’t ignore them. Over $2 trillion per year indicates future tax increases, borrowing increases and currency devaluation.
Large deficit spending once led to investment and productivity promises. Now it’s the cost of keeping the lights. From productive businesses and products to uncorrelated digital stores to valuable digital stores, investors who own assets are the best chance as Fiat’s purchasing power continues to erode.
Government shutdown has put an employment report on halt
Imagine trying to pilot a ship through a storm without a compass or GPS. It’s where policymakers, analysts and even small investors find themselves when employment data is stopped in the wake of government shutdowns.
The offline signal causes the market to become more tupier and more uncertain. Without reliable data, market risk increases. This is great for traders. It’s hell for planners.
If the only certainty is chaos, owning hard, productive, or rare assets like Bitcoin can survive volatility.
Two more Fed rate reductions have stopped in 2025
The word “stagflation” has returned and is as ugly as ever. With growth stutters, purchasing power slides and Feds surrounded by corners, there is a possibility that they will choose two more rate cuts in 2025.
This cocktail is toxic to savers. Actual fees fall further below inflation, lowering the incentive to hold “safe” government paper withering. Under these conditions, those who own the assets are not just ahead of them, they are setting a pace.
Unique Asset: Don’t leave your bags held
When President Trump talks about handing out stimulus checks, the Economic Rules Book is being rewritten in real time. We live through an era of crossroads with government support, inflation and a historic technological revolution.
As Kobeissi’s letter says, “being left to your own assets or left behind.” In this new world, ownership of assets is more than just a hedge. It’s a lifeline. The time to accumulate Bitcoin has increased more than ever.
