Dear Reader,
In today’s video, I’m talking about Trump’s policy proposal, ‘Project 2025,’ as it relates to the Federal Reserve.
The way I was raised we talked politics every night around the dinner table, but I was raised not to talk about two things in public – politics or religion.
That’s been a pretty good rule for me over time…
But as an investor it’s important for me to understand policy.
Because it impacts our direction as a country in the long-term which is critical to us as investors.
You’ve probably been hearing a lot about Trump’s Project 2025, so I want to take you behind the scenes here.
Trump’s Project 2025 is an attempt to remake the federal government in a lot of ways…
The one I find interesting is they want to refocus the Federal Reserve’s mandate.
See, historically, Republicans were the party of shrinking the federal government by lowering taxes – putting money back into the hands of the people.
Democrats wanted to raise taxes and increase the government’s reach.
But raising taxes has become politically unacceptable.
So Democrats found a backdoor way to fund the expansion of government…
The ultimate tax loophole – shifting the problem from our elected officials to the Treasury – forcing the Federal Reserve to sell debt to pay for things instead of raising taxes to pay for things.
And both parties have run a truck through this loophole – spending like drunken sailors!
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So, one of Trump’s Project 2025 goals is to limit the Federal Reserve’s mandate to focus on price control/inflation/debasement of currency.
It also prevents the Fed from buying tons of debt in the year leading up to an election to prop up the economy and the market for an incumbent, which is happening now.
Look, I believe in an independent Federal Reserve completely.
The Fed can’t bow to DEI goals, can’t bow to anything – the best thing they can do for this country is to manage inflation.
And we’ve pushed them to two opposing goals:
We’re asking them to manage inflation on the one hand…
But running deficits – forcing money printing on the other.
So one piece of Trump’s 2025 Project is saying let’s bring the Federal Reserve back to its core mandate of managing inflation…
Let’s stop the Federal Reserve from being a big buyer of bonds/printing money…
And let’s restore some fiscal discipline!
Now, I don’t agree with everything in Project 2025, but this particular policy I agree with.
You’ve got to shrink the Federal Reserve. You’ve got to shrink the balance sheet.
Because as I’ve shown you in my new video, Midnight in America, we are teetering on the edge of a collapse that could start right after the election.
“The Buck Stops Here”
P.S. Today at 2:00pm eastern I’m releasing my first Bear Market Playbook trade alert. I’m recommending two stocks set to double really quickly for the kind of cash flow we look for in times like these. You can get on the list to receive it when you see Midnight in America and take action.