The government overheats the economy artificially by being the largest consumer of newly created currency units, creating false demand that generates loss of purchasing power of the currency rather than genuine higher prices.

If the government had stepped back and reduced spending in 2021 when the economy was already recovering very fast from the reopening, instead of adding fuel to the fire with more spending, inflation would have already been reduced to 2%.

The government cannot tax its way out of the deficit because mandatory spending (Medicare, pensions) consumes the vast majority of revenue, so tax increases would further burden the private sector while not addressing the core deficit.

A 50 basis point rate cut may cause commodities to bounce if more money flows to relatively scarce assets, but the risk is a reversal of disinflation if government spending continues and central banks don't monitor monetary aggregates.

The Fed and other central banks don't pay attention to monetary aggregates, instead attributing inflation decline to supply chain and geopolitical factors rather than recognizing that money supply and velocity changes drive inflation.

A soft landing as the Fed defines it is diplomatically telling you the economy will be 'slow roasted'—inflation will gradually decline to 2% over three years, meaning 9% additional accumulated depreciation on top of the 20% already experienced.

The United States is currently in a debt crisis, but it is being disguised through the slow impoverishment of people rather than manifesting as a sudden market crisis like in the eurozone in 2011-2012.

Inflation is sticky because the government continues to print way too much money—specifically, running a 2 trillion dollar deficit in a growth economy with record tax receipts is completely insane and unsustainable.

Current annualized inflation of 3% means 20% accumulated inflation in four years, and if inflation stays above 2.5-2.7% there is risk of reaching 23% accumulated inflation in the next year.

Inflation is an unjust tax that falls hardest on the middle class and the poorest who have only wages and small deposit savings to live day by day, while those with assets and savings can protect themselves against inflation by investing.

The state of the economy is a private sector recession disguised in a no recession period because GDP is easily bloated with debt and public spending, while disaggregated figures show consumer confidence is extremely low, small and medium enterprises are struggling, and families are suffering from inflation and higher taxes.

The last time the Federal Reserve cut rates by 50 basis points in 2001-2007 it was the beginning of a recession and large increases in unemployment, suggesting the current 50bp cut may similarly precede recession.

The mistake of saying 'we cannot cut Medicare or pensions, therefore we cannot cut anything' is logically flawed—by examining government budgets item by item at granular levels ($110,000 here, $20,000 there), significant cuts are achievable.

The 50 basis point rate cut was unnecessary unless the goal was to disguise unsustainable levels of public deficit and debt by keeping interest costs manageable for the government.

When economists claim citizens' negative perception of the economy is due to disinformation, they are wrong—citizens actually suffer day-to-day from inflation, and their perception reflects genuine economic pain, not false information.

The argument that deficit spending and public debt are reserves for the private sector is completely untrue, as reserves only function when both the purchasing power of the currency and the government debt level remain sustainable.

Both gold and the S&P 500 perform almost the same trend in the long term because both are discounting the destruction of the dollar's purchasing power, not just the value of company profits.

In the equation of exchange (MV = PQ), if velocity of money declines dramatically then deflation may result even with monetary expansion, but currently the problem is resistant inflation because velocity is not declining.

Cutting interest rates and printing money as tools to help governments leverage is illogical, comparable to saying that being surrounded by burgers and sweets is an incentive for someone to lose weight.

European voters are increasingly rejecting government promises of entitlements and subsidies because they understand that inflation-fueled benefits are paid for through loss of purchasing power in lower wages and lower savings capacity.