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Dear Fellow Traveler: Yesterday, I wrote a rather dense article rebutting the structure of financial markets. For many people, it might as well have been in French… But let me get to the point… I argued that the government and financial system create money in ways that help people who already own assets get richer while making everyone else poorer… Effectively, when new money enters the system, it flows first to banks, hedge funds, and big investors who use it to buy houses, stocks, and bonds, driving up those prices before regular people can benefit. This creates dollar debasement. I dug into the programs in which the Treasury Department floods markets with special short-term bonds that banks and financial firms are required to buy, quietly reducing the purchasing power of anyone who holds cash or earns wages. Well… What followed was a nice man on LinkedIn telling me that I didn’t have enough experience to speak as an expert on any areas of central banking or repo policy… Rather than challenging my article, he just insulted me. He said that I needed to “Google” what the Fed and Treasury do… Then a few more insults… He seemed nice. Whatever ManTwenty years ago, I’d have been much more defensive. But I realize something today… I’m picking at the financial religion of the people who worked as RIAs and money managers before the 2008 financial crisis. They don’t believe that the banking system and financial transmission systems have changed. They have… immensely. I’m not writing as a populist… I’m not writing as an alarmist… I’m not writing as a gold bug. I’m just studying the world around me… and pointing a giant camera at it… Commercial banks don’t lend the way they used to. They originate loans for private equity and other shadow banks. Leverage is still here - but it manifests in different corners of the markets these days. The world has shifted under a lot of people’s feet… and instead of looking at what I’m arguing, they shoot the messenger. But it’s interesting because more people have joined us as subscribers in the last 24 hours than at any point since I appeared with Josh Brown in August. So, people are paying attention… And while I will concede that new information may emerge - and maybe someone will come along and prove me wrong - I’m still waiting for that person… And to be honest… I sometimes hope I’m wrong, because I want to believe that this is not a rigged system that continues to extract from ordinary people (but I know better). I don’t necessarily reach my conclusions because I have to be right… But because I don’t have much else of a reason to explain how or why the markets went up the way they did in 2023 and 2024 aside from Michael Howell’s liquidity measurements and the ongoing Capital Wars that persist in our world today… Meanwhile… we keep our eyes on momentum. We’ve still avoided every major downturn since COVID… which, again, means that equations work better than theory… and that math is more valuable than emotions. It was only one person… But it’s a good reminder of what we’re doing here… Challenging decades of theory, finding a workaround for the status quo, and the never-ending narrative that our currency is sound. It isn’t. The dollar is being debased, and it’s happening in a method that few people want to understand, let alone admit. So… keep firing your arrows, Mr. Critic… I’m gonna keep writing twice a day… every single day… and three times on Friday… Stay positive… Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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