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🧂🎸 totally stole this Amphitheater tour idea from . But that’s what the social media pros (like me) do. Awesome venue! Can’t wait for it to rock this summer!

🛌=👀Gary

Today’s headline

When a government becomes over-leveraged, it only has three ways out.

explains this in his book on long term debt cycles, and history backs it up every single time:

1.Austerity
Cut spending, raise taxes, shrink the standard of living.
Painful, politically impossible, and usually self-defeating.
It slows the economy so much that revenues fall anyway.

2.Default or Restructuring
Outright failure to pay.
Extending maturities, lowering interest rates, or forcing creditors to take losses.
Destroys trust in the system and often collapses banks or pensions holding government debt.

3.Monetize the Debt
The path almost every major country ends up choosing.

The central bank creates new money, buys government debt, and lowers borrowing costs.
The debt gets inflated away instead of paid back.
This is the “default through the printing press.”

And when governments monetize debt, they often add capital controls so people can’t escape the devaluation.

We’ve seen this dozens of times across different empires.

In the U.S., the clearest example was 1933.
FDR signed Executive Order 6102, making it illegal for Americans to own most forms of gold.
People had to turn it in.

The government then revalued gold from $20.67 to $35 per ounce, instantly devaluing the dollar and reducing the real burden of government debt.

History doesn’t repeat, but it rhymes.
Every late stage debt cycle looks similar because the incentives don’t change.
Austerity is too painful.
Default is too destabilizing.
So governments do what they’ve always done 💵💵PRINT BABY PRINT 💵💵

Understanding this isn’t about fear.
It’s about recognizing the incentives, the cycles, and why the world moves the way it does.

This is Freedom to 10K. I’ll see you tomorrow!

The money supply shrank at one of the fastest rates since the 1950s during QT.

Borrowing costs surged. Credit slowed. Asset values dropped.
The Fed’s job is to prevent the system from seizing up and when tightening runs its course, easing begins.

QE is not printing physical money.
It’s the Fed injecting digital liquidity into the system through asset purchases.
More liquidity ➡️lower borrowing costs➡️ higher asset valuations.

We saw it in 2009.
We saw it in 2020.

We’ve seen it every cycle for decades.

The Fed ended QT for a reason: the next phase of the cycle is slowly taking shape.
You can argue with the cycle, or you can understand how money actually works.

Day 13 of Freedom to 10K.