Trump’s Plan: Print Money, Grow The Economy, And Let The Market Rip

0:00Hello, everyone. We've got a lot to discuss today. The stock market hit a new all-time high and public equities are ready for the AI supercycle. The President of the United States just confirmed that we are going to run the economy hot, hot, hot, and innovation is accelerating so fast that it is testing the fabric of capitalism. We're live today from the desk of Anthony Pompliano.

0:29It's pretty hard to quantify the range of emotions that have been felt in financial markets over the last few months. But thankfully, we've got data that measures just how historic the market recovery has been. We've literally never seen such a strong rebound in the S &P 500 at any other point in history, ever. We went down 14 % in the quarter, and we're now back to a positive 9 % gain in the same time period. Volatility, that's an understatement. Creative Planning's Charlie Bellello, he shows that if you zoom out further, you can actually go back to the start of the year, and you see that the S &P 500 has rallied 28 % off the April lows, and it hit its first all-time high since February of 19.

1:04Now, Ryan Dietrich, the Chief Market Strategist at the Carson Group, he highlights that the new all-time high in the stock market, that comes with an interesting historical data point. Stocks, they have never, ever, ever peaked in the month of June. And if you're not convinced with historical data, you may be more interested to see the S &P that it's actually following the growth of M2 money supply. David Marlin says that it's all about liquidity. And I agree, David. David goes on to say that the SPX has been moving in sync with Global M2 on an 11-week lag. Right now, it's signaling a 6 ,800 for the SPX.

1:35So no matter how you look at it, the stock market has momentum. Money printing is driving stocks higher and higher. And this begs the question, which stocks will be the big winners? Now, investment firm KOTU recently published their annual presentation on the state of markets, and there are three slides worth paying attention to. First up, the firm points out that the MAG-7, those great businesses, their reign may be coming to an ending. There's no guarantee, but the market is starting to see lower returns, as you can see right here from these businesses. Now, if the MAG-7 is creating lower returns, then who the heck is going to drive the returns of the future?

2:07Well, artificial intelligence is an obvious answer. KOTU says that they believe a new class of AI winners will take center stage. That includes AI power companies, AI software, and AI semis. I don't disagree with them. And the investment firm believes that we earn an AI super cycle. Super cycle, that's their word, not mine. The super cycle thesis would bring a significant gain to the stock market through a different set of companies than what we have enjoyed over the last 5-10 years. That type of competition for investment dollars ultimately makes companies better. And it also increases the opportunity for returns for investors.

2:39Competition breeds excellence, and that's what we're headed towards. Stocks may have experienced a historic rebound in Q2, something we'd never seen before. But just don't mistake that rebound for the end of the momentum. These higher prices are likely to create even higher highs. And those pessimists, all those people who are yelling and screaming, they're still going to be crying while all this happens. The economy is about to be hot, hot, hot. Pay attention right now. Last night, President Trump posted on Truth Social, for all cost-cutting Republicans, of which I am one, remember, you still have to get reelected.

3:12Don't go too crazy. We will make it all up times 10 with growth more than ever before. What the heck are we doing here? I thought the whole idea is that we were gonna cut costs. We tried that, but it didn't work. And now we have to grow our way out of the problem. The only way to accelerate growth is to innovate and to print money. And we're gonna do both of them. So you as an individual, you better buckle up because things are about to get real, real crazy. If we simply are going to print money and run the economy hot, that means that assets priced in dollars, they're going to the moon. Literally, Bitcoin is going to a gazillion dollars if they're going to run the economy as hot as they're suggesting that they're going to do.

3:50Every week, I sit down and talk with Jordy Visser. He's a 30-year veteran of Wall Street, and I really enjoy having these conversations because we try to get a better understanding of what's happening in financial markets. This past weekend, we spent time talking about the rise of Zoran Mamdani and socialism. It's a crazy idea that all of a sudden became popular. And Jordy thinks it's heavily related to the acceleration and innovation that we've been experiencing in recent years. Now, Jordy's view that young people are in such a dire position that they're turning to socialism, it's obviously a scary development in our society.

4:18But rather than yell and scream at these young people on how dumb they are, which many people think that they are being dumb, it is actually important to understand why these young people feel the way they do. Here is Jordy explaining his perspective on the situation. I want to bring up Joseph Schumpeter again. And I'd probably every time I say it, people don't go just go into an LLM. You don't have to go read anything but Joseph Schumpeter. All you have to do is go into Chachi PT, go into perplexity, go into Gemini and just type in what were Joseph Schumpeter's economic theories about capitalism and at what point the socialism start to become the answer to capitalism.

4:56And he will go through and he's the father of creative destruction. So he talked about how innovation eventually accelerates so fast that it causes capitalism to be broken. So rather than say the system and the fact that people don't feel like they're participating, I started heading down this journey in 2013 about exponential innovation and the dangers it would have towards the fabric of capitalism. If you continue to have a divide in terms of inequality and you continue to have a few people that had most of the money, you would eventually cause problems. And the easiest way to cause what has happened in New York City, in fact, the only way for it to happen is through younger people.

5:37That's the only way. The younger people don't have a belief that the system will come back. They believe the system has been worsening every single year. And so if you take anyone right now that is, you know, 25 years or younger, what have they experienced? I mean, the Internet, you know, really started to accelerate in 2000 as a part of our lives. Amazon became a company. And then all of a sudden you have the smartphones and they at those times, the 25 year old at that time was eight years old. So they're feeling right now the pressures that are coming from what happened with the smartphone, less jobs, very few companies that are doing well.

6:14There's a reason why burger places in New York that people love, like Prime Burger and all these old diner type places have gone out of business, have been replaced with these very, very efficient salad companies and Chipotle and all of these things. It's because technology and innovation is happening in slow motion and getting us there. What has now entered up in the situation when you get to young people is they are voting for a different system. The benefit is, or the reality is, the reason they're doing this is because they can't live the dream that they thought was supposed to be there. You get a job, you move up the corporate ladder, you get paid more money every year.

6:51You don't have to worry about getting fired when you're a young person unless you're in the bottom 10 % of the employees. And you kind of move up, then you get a family, then you go buy a house. That entire path is gone. You start out with student debt, you can't feel certainty in your job, and then you can't buy a house. Plain and simple, that's it. Peter Thiel literally just posted something about this on why the students are so angry and why socialism is happening. So I think where Bitcoin fits into it, it is the system that eventually is built through the disruption of all businesses. And that's why I keep saying Bitcoin for me is the S &P 500.

7:26Eventually, the way that young people will benefit in a world of abundance where you don't actually need the money because the prices of everything have gone down. and your identity is not based around your job to where you have to be an entrepreneur, you have to change jobs constantly, you have to be creative, you have to go through it. If we're in a world that is moving so fast that there isn't a company to go work at in a desk and you're working remotely and you're moving from place to place and travel and leisure becomes part of your life, I think younger people are better prepared for that.

7:54So I think socialism is just the next point of the capitalism side. And the more people are angry, the more money the government has to print. That's why the transfer payments are going up. And that's why at the end, Bitcoin will not stop going higher, regardless of what people say. It will replace a lot of the fiat assets over time. Now, Jordy makes an important point in that clip. Young people are frustrated. They don't see a path to living the life that they dreamed of. These young people just know the current system is not working for them. Now, obviously, the answer is not to turn to socialism, but rather they should figure out what the people succeeding are doing and then just copy them.

8:29Own assets instead of saving in dollars. Embrace technological innovation instead of run from it. Take risks to gain economic reward instead of crying and complaining that life is not fair. These are all common sense ideas for the most part, but they're unpopular to say out loud. It doesn't make them untrue though. And Jordy's not the only person who understands what's happening. Peter Thiel, the famous investor and entrepreneur, he had one of his internal Facebook emails leaked. And in it, he had some wise words about the reason behind the why of socialism's rise in popularity. Now, Peter writes specifically about young people the following.

9:03I would be the last person to advocate for socialism. But when 70 % of millennials say that they are pro-socialist, we need to do better than simply dismiss them by saying that they're stupid or entitled or brainwashed. We should try and understand why. And from the perspective of a broken generational compact, there seems to be a pretty straightforward answer to me. Namely, that when one has too much student debt or housing is too unaffordable, then one will have negative capital for a long time and or they will find it very hard to start accumulating capital in the form of real estate. And if one has no stake in the capitalistic system, then one may well turn against it.

9:37What I would add to Mark's summary is that in a healthier society, the handover from the boomers to the younger generations should have started some time ago, maybe as early as the 1990s for Gen X. And then for a whole variety of reasons, this generational transition has been delayed. The boomers have maintained an iron grip on many U.S. institutions. When the handover finally happens in the 2020s, it will therefore happen more suddenly and perhaps more dramatically than people expect, or than such generational transitions have happened in the past. And that's why it's especially important for us to think about these issues and try and get ahead of them.

10:10One example of such an iron grip from my colleague, Eric Weinstein. Of the 67 top research universities in the United States, 62 have baby boomer presidents. Three are silent generation and only two are Generation X. Today, the median age of these 67 university presidents is 65 years old. This is very different from the recent past. Only 30 years ago in 1990, the median age of these same university presidents was a much lower 52 years old. The older generation did not completely refuse to give up power, and therefore much greater generational diversity was to be found in university leadership.

10:44Or to take a small but suggestive example from U.S. presidential leadership, Three presidents, Bill Clinton, George W. Bush, and Trump were all born within 70 days of one another in the summer of 1946. These three people were literally at the head of baby boomer class that was born nine months after World War II ended in September of 1945. In my mind, they somehow derived much of their power from the self-referential narcissism of the boomers as this unusually large cohort of people voted for people like themselves and could afford to ignore anyone younger. And again, this iron grip has been maintained for a shockingly long period of time, but it will not be maintained forever.

11:22And now here's the thing. Peter Thiel, he's not the only Silicon Valley investor who sees what's happening. David Friedberg, investor extraordinaire and host of the All In podcast, he lays out exactly why the national debt in particular is making socialism popular. Take a listen to this. Kamala Harris is gonna look like a conservative candidate pretty soon. A lot of people don't quite recognize and see how important the debt and the deficit is with respect to how it's ultimately going to lead to socialism as it has every single time in history when you've had a free voting democracy. People call it left, but it's actually quite different than just being more traditionally left.

11:58It's really a revolution against the system that brought them to this moment. Because the promise that we gave in America, the American dream was if you will go to college, you will graduate, you will have income, you will have stability, you will be able to buy a home. And what we did is we increased the government's role in making that dream possible. And in doing so, we created effectively a system where we gave unrestricted access to capital, which inflated the cost of education, people could go to school like Zoran and major in African studies and graduate with 200$300 ,000 of debt, and then never get a job, the guy has not had a real job.

12:31And this is the truth for 32 million young Americans, they find themselves living in places where they cannot afford to pay their bills every month. And they will never get out of the debt cycle that they were thrust into and believe that they were going to be able to graduate from and excel in the world and increase. They all have what is called negative capital. They have debt and they will never be able to get out of that cycle. So where do you turn in that moment? You don't go turn to corporations to solve your problems. You don't go turn to your friends and your siblings and your family. They're not going to bail you out.

13:03You turn to the voting booth and you hear a guy like Zoran show up and say there can be a better path forward. The better path forward is the government can and should do more to help. And in doing more to help, we will increase government, we will tax the rich, we will tax the corporations, we will take all of that capital, and we will redistribute it in the form of services and checks and support for all of the people that find themselves unable to take care of themselves. And this becomes a tipping point when the majority of the voter base ends up in that situation where they're that deeply in need, where they have negative capital.

13:37And that is the situation America finds itself in today. There is no easy answer and there is no easy solution out of this. But I can tell you one thing for sure, that in historical perspective, we have seen it time and time again, across dozens of countries that have embraced socialism to get out of the debt cycle that ultimately absorbs and swallows up the young, it swallows up every family, it swallows up every person in the working class with debt, they're swaddled with it, and they all try and get out of by increasing government and embracing these socialist concepts. And it has never, ever worked.

14:10More government is not the answer. Less government is. Zoran won 61 to 39 with college educated. Young people voted for him. Old people did not as much. White people voted for him because they went to college. Non-white people did not as much. At the end of the day, young, college educated white people elected this guy. And that is the beginning of a wave that will sweep over America. And I really do worry about where this takes us. So obviously, socialism is a bad idea. It doesn't work. But to a generation of young people who feel left behind, it seems to be the only path to level the playing field that could help them get ahead.

14:44Let's just hope that we can educate these individuals as a society so that the younger generation doesn't destroy this country with the bad ideas that have toppled many great nations before us. That's it for today's show. I hope you guys are enjoying this. I'm having a blast putting it together. I'm trying to be as informative as possible. Please make sure that you're following along on X and make sure that you are subscribed to the YouTube channel. I will see you guys live from the desk of Anthony Pompliano tomorrow.