Ever get the feeling that the world is spinning faster than at any point in living memory? If you haven’t, you’re not looking at the right data. In today’s new economic order, holding real, tangible assets isn’t a preference; it’s a necessity. As the Fed cuts rates into persistent inflation and the deficit spending sits at $2 trillion a year, global capital markets commentator, The Kobeissi Letter, warns, own assets or be left behind.
Rate cuts into 2.9%+ core PCE inflation: a 30-year first
For the first time in three decades, the U.S. is staring down the barrel of interest rate cuts while core PCE inflation sits above 2.9%. Rate relief in an environment where prices remain stubbornly high.
It’s a sign of how desperate policymakers are to stave off deeper pain in the real economy, even at the risk of stoking the embers of persistent inflation. Historically, central bankers waited for inflation to fall convincingly before turning dovish. Now? Everything’s up for grabs.
The message is clear: if you’re sitting in cash, the silent inflation thief is gnawing away at your future spending power.
Rapidly deteriorating US labor market outlook
The U.S. job market is declining. Layoff announcements from blue-chips and Silicon Valley darlings are piling up. With new openings slowing and “help wanted” signs suddenly less common, the rug is being yanked from under workers’ feet.
If the job market sours, cash-on-hand may not cut it, and asset ownership could be the buffer you need. As value investor Mike Alfred points out anyway, the richest people in the world are entrepreneurs and investors:
“Almost nobody gets rich with a salary.”
Deficit spending running at over $2 trillion per year
It almost feels passé to mention America’s ballooning deficit, but the numbers simply won’t be ignored. Over $2 trillion a year points to future tax rises, more borrowing, and the potential for currency devaluation.
Massive deficit spending once led to promises of investment and productivity. Now, it’s the cost of keeping the lights on. Investors who own assets, from productive businesses and commodities to uncorrelated digital stores of value, stand the best chance as fiat’s buying power continues to erode.
Jobs reports suspended due to government shutdown
Imagine trying to steer a ship through a storm without a compass or GPS. That’s where policymakers, analysts, and even small investors find themselves when jobs data gets suspended in the wake of government shutdowns.
With critical signals offline, markets get choppier and uncertainty grows. The absence of reliable data increases market risk, which is great for traders, hell for planners.
When the only certainty is chaos, owning hard, productive, or scarce assets like Bitcoin lets you weather the volatility.
Two more Fed rate cuts in 2025… into stagflation
The word “stagflation” is back, and it’s as ugly as ever. Growth stutters, purchasing power slides, and the Fed, boxed into a corner, looks likely to opt for two more rate cuts in 2025.
This cocktail is poisonous for savers: real rates drop further below inflation, and the incentive to hold “safe” government paper withers. In these conditions, those who own assets aren’t just ahead, they’re setting the pace.
Own assets: don’t get left holding the bag
As President Trump talks about handing out stimulus checks, the economic rulebook is being rewritten in real time. We’re living through an era where government support, inflation, and historic technological revolutions meet at a crossroads.
As The Kobeissi Letter says, “own assets or be left behind.” In this new world, asset ownership isn’t just a hedge. It’s a lifeline. The time to stack Bitcoin is now more than ever.