Rate CUTS And Money PRINTING Are Coming! Own These Assets

0:00Hello, everyone. Inflation is crashing. The Fed nominee wants to strike a deal with the Treasury. Record tax refunds are starting to hit consumer pockets. And Jensen Huang says that we are going through a generational build-out of infrastructure. We are live today from the desk of Anthony Pompliano.

0:24Before we get into today's episode, I need your help. My goal is to get to 1 million subscribers on YouTube. Right now, we have 43 ,516 of you there. Hit the subscribe button and let's get into today's episode. All right, ladies and gentlemen, Kevin Warsh and Scott Besant, they are cooking up a new plan and they want to revolutionize monetary policy. Now, Warsh, he is the next Fed chairman nominee. He wants to create an accord between the Fed and the Treasury Department. They want to lock hands and say, let's be boys forever. Besant, who runs the Treasury, he's fully on board with this plan. Now, you got to remember, these two guys have both worked very closely with Stanley Druckenmiller for years.

1:02They have very similar views on global macro environment and monetary policy. Some may call it the Druck worldview. Now, the legacy finance folks, they may not like this plan so much. You know, there's a lot of change going on here, but I would not bet against Kevin Worsh and Scott Bestin from pulling this off. A big part of the plan is to get interest rates significantly lower. And for good reason, frankly, in my opinion, Truflation, the real-time alternative metric is showing inflation at 0.68 % right now. That is nearly 75 % lower than the Fed's target of 2%. 0.68 % inflation is ice cold. Alberto Bernal had a great point when he said the following, if trueflation is even remotely close to accurately describing what consumer prices are doing at this time, then the official US headline CPI print should collapse from 2.7 % to 1.5 % in the next three to four months.

1:55And since employment growth is now stagnant at best, the Federal Reserve will be forced to cut rates much more than the market currently expects. In other words, his view is that the analyst consensus is wrong and that the Fed will be forced to deliver at least 75 to 100 basis point cuts in 2026. So the market is saying to cut rates. Truflation is saying to cut rates. The president is saying to cut rates. And now the Fed chairman and the treasury secretary are saying to cut rates. What do you think is going to happen? Do you think that they're all just gaslighting us? Do they get in some room and they're all conspiring to like trick us or something?

2:31Or do you think that they are actually going to just cut rates and run the economy hot, hot, hot? I'll take that option for a thousand, Alex. Rate cuts are coming. Just make sure that you have Bitcoin, gold, and other hard assets because they're going to run this economy hot. They're going to cut rates and they're going to print money. And the big risk right now is deflation, not inflation. So make sure your portfolio is protected. Record tax refunds are on the way to your pocket and all your neighbors. That's at least according to Mike Zaccardi. Now, the average income tax refund is estimated to be over$4 ,000.

3:08That's right, 4 ,000 big ones. And consumers are going to start getting it soon here in 2026. Now, the reason why this is important is because historically, when tax refund season happens, people take that money and what do they do. They go and they spend it in the economy. And if you're spending in the economy, GDP should start to trickle up further and further. But we already have an economy that's growing incredibly quick, 5 plus percent GDP growth. And so all of a sudden, we nearly double the amount that people are going to get from their income tax refunds for$1 ,000. They're going to be out splurging like they're going to Vegas for the first time or something.

3:44Seeing the American consumer with real money in their pocket and able to spend it means that GDP is likely to get even more of a tailwind. We're living in a high growth, low inflation economy. And so handing$4 ,000 to thousands and thousands and thousands, if not tens of millions of Americans, likely means that we're going to see GDP continue going up and we're going to continue to see inflation stay right where it is. The deflationary force is too big. It doesn't matter how much money's printed, how low interest rates go or how much these income tax refunds are. No one's going to be able to stop this deflationary force.

4:18And so get ready, folks. People are about to party like it's 1999 all over again. They're getting on estimated$4 ,000 per person. It's about to be a lot of spending in the U.S. economy. The big question in the stock market right now is can these companies tied to artificial intelligence keep it up? They're the ones that are driving most of the stock market return. They're the ones that people believe are driving GDP growth. Jensen Huang, who's widely considered the godfather of artificial intelligence, he was recently on CNBC, and he just plainly stated, we're in a once in a generation infrastructure build out.

4:52Take a listen. We're in the once in a generation infrastructure build out. This is the largest infrastructure build out in human history. And there's a fundamental reason for that. Artificial intelligence is going to fundamentally change how we compute everything, everything from database processing, the way we do search, the way we do recommender systems, the way you shop, the way you watch movies, and of course these new agentic systems that are being developed and evolved. Last year, this last year, we saw an inflection point in AI. AI became super useful. No longer hallucinating, it's generating informed content, it's reasoning, it's thinking, it's doing research, it's able to use tools.

5:34All of a sudden AI over the last couple of years went from being curious to super useful. The inflection point also came with it, profitable tokens. Anthropic is making great money. OpenAI is making great money. If they could have twice as much compute, the revenues would go up four times as much. I mean, literally, these guys are so compute constrained, and the demand is so incredibly great. The number of enterprise users, the number of consumer users, the number of startups are being built on top of these companies, It's just going through the roof. So when you see numbers that are, frankly, remarkable, that$660 billion this year will be spent by the hyperscalers, as we continue to learn like we did from Amazon last night, you sit back and think to yourself, that's completely justified based on what you see.

6:25It is appropriate and sustainable. And the reason for that is because all of these companies' cash flows are going to start rising. You know, people are comparing it to cash flows. one of those numbers are wrong. It's just the cash flow is wrong. We are addressing the largest software opportunity in history. For the very first time, software is not just a tool. A tool is like Excel. Now software uses tools. So these AIs use Excel. And so I think the opportunity for this new era of software is incredible. And we're seeing it already moving the earnings of meta. Nobody uses AI better than meta. And so if you look at the way that they're using AI, AI went from a classical recommender system running on CPUs to now a generative AI agentic system that is making recommendations.

7:19Everything from the way the social media works and the way they recommend ads and help advertisers create content has fundamentally been changed. And their earnings show it. And that's the reason why they're investing so hard. They see just a much larger future potential for it. And that's just one company. This is going to affect AWS's shopping and the way they recommend goods. This is going to affect how Microsoft's enterprise software works. Every single company sees the same inflection point. And that's why everybody leaning in so hard. Now, I don't know about you. AI seems pretty cool. We build a lot of products with it.

7:52We use it internally. We see growth coming from these things, saving us money and making us more productive. But you don't have to take my word for it. Jensen Huang, the guy built a$4 trillion company. I think he knows what he's talking about. And so to hear him say we are in a once in a generation infrastructure build out, and this is the largest infrastructure build out in human history. Sign me up for that, baby. Inject that into my veins. AI means that we're going higher. That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube, and I'll see you all live from the desk of Anthony Pompliano tomorrow.