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Brace Yourself: Check Out These 3 Economic Data Points...

Message from Tom & Nick

Dan Thiessen stopped by yesterday to chat with Mike Desormeaux and myself about all things fitness and nutrition.

Dan is about to embark on an insane quest to ride a Rogue Echo bike for 12 hours straight and burn about 6,000 - 7,000 calories in the process.

The big day for the ride is January 20, 2024.

We think this is a world record on that type of bike and honestly, I'm slightly scared for the guy.

His hydration and electrolyte levels are going to have to be managed carefully.

But if anyone can set a massive goal like that and hit it, he's the guy.

Large fitness and Crossfit podcasts across North America have been having him on to talk about this insane quest.

And he's doing it for a great cause; he's trying to raise money for kids in Haiti, a charity that his brother operates.

For context, Mike and myself do 10 minute on/off sprints on that bike and it tears a strip off of me every time.

If you're just beginning or trying to up your fitness goals, Dan's gym, RadixGym, will likely offer you something. He also does remote/online programming and diet planning.

The podcast with Dan will be out next week sometime.

And speaking of stuff that is absolutely bonkers, check these three economic data points from the UK, the USA and Canada.

First up, the UK, with this beauty...

Taxpayers in the UK don't just have to suffer inflation, which is straight up theft of their purchasing power...now they have to foot the bill for losses the Bank of England has been accumulating.

And we're going to go out on a limb and say that they can't cover these losses with "savings" from the government...so they'll print more money to pay for those losses.

And of course, that causes more inflation.

We're living in a circular house of economic cards.

Let's move on to the USA. Take a peek at this chart courtesy of Luke Gromen's weekly subscription newsletter (FFTT-Treerings.com):

The red line is the US unemployment rate.

If unemployment continues to increase and/or a US recession hits, we can expect US deficits to then also increase.

No big surprise there, right?

Here's the problem: US deficits are already 8% of GDP on a trailing 12 month basis...and it's not a recession yet!

Past recessions have seen 6%, 8% and 12% deficits increases (the government spends to "stimulate" during a recession driving deficits higher).

Well, if you add 6% to the existing deficit, that's $1.5 Trillion of new Treasury issuance (debt).

If you add 8%, it's $2.2 Trillion of new issuance. If you add 12%, it's $3.2 Trillion.

The only thing to say to that is...LOL!!

Each of those are represented with the dotted lines in that chart.

We are clearly in uncharted territory.

That's just an unprecedented and historic amount of new debt and money printing that will have to occur to accommodate it.

Look at that chart again, it goes back to the 1970s...we've haven't seen anything like this in over 50 years.

Let's ask ourselves something...

How much inflation can we anticipate if that amount of new deficit spending hits?

Brace yourself...

...and let's pray for some sort of economic productivity miracle that prevents this.

Let's move on to Canada.

Check out this beauty of a chart that Daniel Foch recently shared...

The Canadian government tabled its economic update this week and some of the data coming from it is shocking.

Check out the last four bars on the chart.

The amount of debt that we're issuing as a country was supposed to be temporarily super high because of the pandemic.

It now seems like the new normal.

If grocery bills have gotten more expensive in the last few years...what's going to happen if we keep this up?

Every update from the government is making "higher projections" of debt than the previous update.

And remember, if the US falls into a recession and prints like crazy to weaken their dollar and stimulate...then Canada must do the same, but more and faster, to keep our dollar even lower than the US dollar.

Fun times ahead.

The UK, the USA, Canada...basically the entire developed world is awash in debt.

And they're going to print more and more and more to try and stay ahead of it.

This means your income, your savings, your investments have to be in things that you believe will outpace that inflation to protect you from this.

It's more important than ever.

Our preferred combo of good, income-producing residential single family starter homes and Bitcoin is how we're playing this.

One foot in the old fiat monetary system and one foot in an emerging new monetary system.

It's more important than ever to pay attention to this stuff.

The next few years will, unfortunately, wipe out many people's purchasing power.

Their bank balances may look the same but they'll be able to afford a lot less with those same dollars.

M2 Money Supply debasement is a real sneaky thing that most people don't understand.

Stay ahead of these changes and you can ride them to living life on your own terms!

Tom & Nick

p.s. This week we're sharing a Rock Star Minutes where Rock Star Coach, Andrew Grecho, walks us through a particularly nightmarish experience with a tenant. Watch it here.

p.p.s. If you want to support Dan on his charity ride you can donate to him at www.TheDreamDealer.org

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