You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. Three Things About the Financial System That Sound Like April Fools’ JokesNope... these are all real....
Dear Fellow Traveler, Happy April Fools’ Day. Let’s just get into it… Let’s discuss three things about the global financial system that sound like they were written by a person who was fired from The Onion. They’re all real, and they don’t make a hell of a lot of sense if you’re using the wrong scotch… 1. The U.S. Government Still Values Its Gold at $42 an OunceGold traded back above 4,800 per troy ounce this afternoon... According to official reports, the U.S. government holds 261.5 million ounces of gold. On the books, that gold is valued at $42.22 per ounce. That number comes from a 1973 law, and nobody has updated it since. At the statutory rate, the government’s gold is worth about $11 billion. At today’s price, it’s worth roughly $1.23 trillion. That’s a gap of over $1 trillion because Congress never changed a single number from the Nixon administration. There has not been a fully independent, comprehensive audit of all U.S. gold reserves in modern times; partial inspections have occurred, including reviews in the 1950s and again in the 1970s. Seems legit… That’s some Xaro Xhoan Daxos… richest man of Qarth… level confidence. 2. The Same Bond Can Be Pledged as Collateral by Multiple People at the Same TimeI’ve written about this process before… It’s called rehypothecation, and it works like this. A hedge fund pledges a Treasury bond to its prime broker. That broker turns around and pledges the same bond to another bank. That bank pledges it again. The same asset backing multiple loans simultaneously, like renting out the same apartment to three different tenants and hoping none of them show up on the same night. Studies (including IMF work) have found that a large share of collateral at major dealers is reused in subsequent transactions, often estimated at well over half. Before 2008, there were essentially no limits on this practice in London. One estimate suggested that a single dollar of collateral was supporting three to four dollars of borrowing. It’s still legal. It’s just… slightly less unlimited now. Isn’t finance wonderful… 3. The Most Important Financial Institution in America Processes $3.8 Quadrillion a Year, and Nobody Knows What It IsThe Depository Trust & Clearing Corporation settles nearly every stock and bond trade in the United States. In 2025, it processed approximately $3.8 quadrillion in securities transactions. That’s quadrillion, with a Q. For context, U.S. GDP is about $31 trillion. The DTCC processes more in a single week than the entire American economy produces in a year. If the DTCC stopped working tomorrow morning, the entire financial system would freeze before lunch. And if you asked a hundred people on the street what it does, you’d get a hundred blank stares. Once again… everything here reads like a joke… But that’s how our popsicle stick-and-Viagra-based economy operates on leverage, without anyone digging deep enough to ask just how insane it all is post-2008… The financial system doesn’t need conspiracy theories. It just needs someone willing to read the paperwork. Happy April Fools’ Day. The joke is that none of this is a joke. 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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