We’ve been talking about the inevitability of massive money printing for the past few years. It’s one of the big reasons I like crypto so much.
Now everyone, including mainstream CNBC shows like “Fast Money,” are talking about how the Federal Reserve’s actions are causing stock prices to go up.
The biggest evidence that monetary policy concerns have gone mainstream is the huge popularity of a “meme” known as “money printer go brrr.” (If you aren’t familiar with memes, they’re cultural ideas that spread “virally” online. Memes can be about anything.)
Here’s the image that started the “money printer go brrr” meme:
These “money printer go brrr” memes are everywhere on social networks like Twitter and Reddit. There are thousands of variations out there.
This meme going mainstream is a big deal. It shows that society is starting to become aware of the severe impact monetary policy can have.
We’re clearly headed into a future where trillion-dollar deficits are the norm and the Fed will print the money to pay for them. For proof, look no further than this recent New York Times titled MMT Shows the Trillion-Dollar Deficits are OK.
This is the direction we’re headed. As I’ve frequently written, nobody wants to slash spending or raise taxes dramatically. We’re going to pay for all this with newly printed money. It will be the largest monetary experiment in history.
Eventually there will be consequences for this reckless spending and borrowing. But it’s very hard to say when we’ll see them. Severe inflation could be right around the corner. Or it could take 5 years to see.
Some people, like John Williams of ShadowStats, believe inflation is already running between 6% and 8%. Williams measures inflation the way we used to (in two separate series, 1980-based and 1990-based). And the results are startling. I’ve examined his work and believe 6% to 8% inflation rates today are plausible.
Inflation is coming. That’s why it’s so important to own gold, silver and bitcoin. I believe these assets have the potential to perform strongly for at least the next five to 10 years. Now that we’re basically practicing MMT, it will be extremely difficult to stop. In my view, the money printing will only increase from here.