The Sisyphean Folly Of Printing Press Money

Something remarkable happened on Tuesday.  The Dow Jones Industrial Average (DJIA) broke the 30,000 point barrier for the first time ever. President Trump commemorated the feat by calling the number “sacred.”

Some Americans were especially grateful as they said their Thanksgiving Day grace. These generally include wealthy owners of stocks and other financial assets. Forty years of inflationary monetary policies have elevated their prosperity to holiness.

The remaining Americans, through no fault of their own, missed out on these sanctified blessings.  Perhaps they’ll get some leftover table scraps for Christmas. These, indeed, are the questions being asked.

Will Washington make this a Merry Christmas for cash strapped Americans? Will the Treasury send out the second round of $1,200 stimulus checks for the yuletide?  Will Congress be Ebenezer Scrooge or Mr. Fezziwig?

These are important questions as 2020 approaches its twilight.  And this is the season of giving. After months of rolling lockdowns ordered by state and local governments, Americans need relief. Moreover, they must first receive from Uncle Sam so they can give to their fellow kindreds.

This was a recent finding of a Franklin Templeton-Gallup survey. Specifically, the survey found that 16 percent of Americans plan to spend more on holiday gifts this year. But with another $1,200 stimulus check, 22 percent of Americans say they will spend more this holiday season.

Somehow, Christmas spending has become dependent on government stimulus checks. But, remember, the government stimulus is dependent on printing press money. And printing press money is dependent on the dollar retaining some semblance of value.

Thus, herein lies the sacred folly.  The more that printing press money’s emitted, the more value the dollar loses. We’ll have more on what this means for you and your wealth in just a moment.  But first some context…

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