Money For the Rest of Us

With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar?Topics covered include:What is driving the double digit increases in U.S. home pricesWhy hasn't inflation spiked in line with rising home pricesWhat is the velocity of money and why is it fallingWhat are three schools of thought regarding what causes inflationWhat is the average interest rate and maturity schedule of the U.S. national debtHow the Bank of Amsterdam is an example of how central banks can go insolvent and shut downWhy the dollar has an exorbitant privilegeThanks to Policygenius and Hello Fresh for sponsoring the episode. Use code david12off for 12 free meals with free shipping from Hello Fresh.For more information on this episode click here.Show NotesWhere Did Americans Move in 2020? by Janelle Cammenga—Tax FoundationVelocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. LouisFederal Surplus or Deficit [-] as Percent of Gross Domestic Product (FYFSGDA188S) Chart—Federal Reserve Bank of St. LouisHow the CPI measures price change of Owners’ equivalent rent of primary residence (OER) and Rent of primary residence (Rent)—U.S. Bureau of Labor StatisticsConsumer Price Index – March 2021—U.S. Bureau of Labor StatisticsTable 1 (2017 – 2018 Weights). Relative importance of components in the Consumer Price Indexes: U.S. city average, December 2020—U.S. Bureau of Labor StatisticsInflation and Debt by John H. Cochrane, Fall 2011—National AffairsUS Government Finance: Debt by Dr. Edward Yardeni and Mali Quintana—Yardeni Research, Inc.Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political ScienceBIS Working Papers No 902 An early stablecoin? The Bank of Amsterdam and the governance of money by Jon Frost, Hyun Song Shin, and Peter Wierts—Bank of International SettlementsEXCHANGE ARRANGEMENTS ENTERING THE 21ST CENTURY: WHICH ANCHOR WILL HOLD? by Ethan Ilzetzki, Carmen M. Reinhart, and Kenneth S. RogoffRelated Episodes and ContentA Complete Guide to Understanding and Protecting Against Inflation287: What Causes Hyperinflation and How To Prepare For It295: Federal Reserve Insolvency and Monetizing the National DebtSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options.Topics covered include:David's business and investment philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocksThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesWhat I think, not what I thought – Jason FriedWhy in the World Would You Own Bonds When… – Ray DalioExplainer: Foreign access to China’s $16 trillion bond market – ReutersThe True Cost of Hedging S&P Downside - Movement CapitalRevisiting Covered Calls and Protective Puts: A Tale of Two Strategies – Bryan FolticePathetic Protection: The Elusive Benefits of Protective Puts – Roni IsraelovRelated Episodes302: Investing Is Not Knowing255: With Interest Rates Falling, Why Do You Own Bonds?225: How To Invest in BondsSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There has never been this much money in the world. Now is the time to own real property.Topics covered include:How to buy something with BitcoinHow cryptocurrencies are similar and different from fiat currenciesWhat is legal tenderWhy there has never been this much money in the worldWhy central banks can control interest rates but not inflationWhat real property should investors ownThanks to Truebill and Babbel for sponsoring the episode. Use code David for Babbel to get an additional three months free.For more information on this episode click here.Show NotesThe Power of Gold: The History of an Obsession by Peter L. BernsteinIRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue ServiceLegal Tender Status—U.S. Department of the TreasuryIndia to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—ReutersExecutive Order 6102—Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government by Franklin D. Roosevelt—The American Presidency ProjectTotal Circulating Bitcoin—Blockchain ChartsFederal Reserve statistical release: Factors Affecting Reserve Balances, March 18, 2021—United States Federal ReserveMoney Stock Measures – H.6 Release, March 23, 2021—Board of Governors of the Federal Reserve SystemM2 Money Stock/Gross Domestic Product—Federal Reserve Bank of St. LouisMonthly Budget Review: Summary for Fiscal Year 2020—Congressional Budget OfficeA Fed With No Fear of Inflation Should Scare Investors by James Mackintosh—The Wall Street JournalBiden Administration Officials Put Together $3 Trillion Economic Plan by Ken Thomas and Andrew Duehren—The Wall Street JournalTurkey faces a currency crisis after Erdogan sacks his central banker—The EconomistRelated Episodes295: Federal Reserve Insolvency and Monetizing the National Debt316: Paper, Rocks, or Digits—What Makes the Best Money322: Why Currency Exchange Rates MatterSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How do non-fungible tokens work, what are the risks, and how do NFTs fit within the landscape of investments.Topics covered include:Investing in physical art versus cryptoartHow NFTs work on the ethereum blockchainHow Ethereum differs from BitcoinWhat is the purpose of investing and are NFTs investmentsHow much energy do cryptocurrencies and the financial system consumeWhat are the risks of NFTsThanks to Amazon Pharmacy and SmartAsset for sponsoring the episode.For more information on this episode click here.Show NotesWant to Buy an NFT? Here’s What to Know by Amber Burton—The Wall Street JournalFrom Crypto Art to Trading Cards, Investment Manias Abound by Erin Griffith—The New York TimesNFTs, explained by Mitchell Clark—The VergeHERE IS THE ARTICLE YOU CAN SEND TO PEOPLE WHEN THEY SAY “BUT THE ENVIRONMENTAL ISSUES WITH CRYPTOART WILL BE SOLVED SOON, RIGHT?” by Everest Pipkin39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily ChainCambridge Bitcoin Electricity Consumption IndexBitcoin Energy Consumption Index—DigiconomistEthereum Energy Consumption Index (beta)—DigiconomistThe Bitcoin vs Visa Electricity Consumption Fallacy by Carlos Domingo—Hacker NoonHow much would you pay for a virtual sofa? by Anne Quito—QuartzThe Wisdom of Finance: Discovering Humanity in the World of Risk and Return by Mihir DesaiTechno-optimism, behaviour change and planetary boundaries by Adair Turner—Keele World Affairs Lectures on SustainabilityRelated Episodes167: Is Bitcoin Better At Money Than The Dollar?182: Was Tulipmania Just Like Bitcoin?228: How Tokenization Will Radically Change InvestingSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How much can you earn investing in farmland and what are the risks? What are the ways to invest in farmland?Topics covered include:What determines farmland investment returnsHow much has U.S. farmland appreciated historicallyHow much income does farmland investing generateWhy the amount of U.S. farmland is shrinkingHas another commodity supercycle startedWhy U.S. farmers are dependent on exportsWhat are farmland investing risksWhat farmland investment vehicles are availableHow to evaluate a farmland investment opportunityThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show NotesFarmland Values, Land Ownership, and Returns to Farmland, 2000-2016 by Christopher Burns, Nigel Key, Sarah Tulman, Allison Borchers, and Jeremy Weber—United States Department of AgricultureLand Values 2020 Summary—United States Department of AgricultureFarming and Farm Income—Economic Research Service United States Department of AgricultureAgricultural Markets and Prices: Towards 2025—Organisation for Economic Co-operation and DevelopmentU.S. Agricultural Trade at a Glance—Economic Research Service United States Department of AgricultureWhy Invest In Farmland?—AcreTraderFarmTogetherFarmland Index Posts First Negative Return in 19 Years by Mike Walsten—Pro FarmerNCREIF Farmland Property IndexLumber Prices Are Soaring. Why Are Tree Growers Miserable? by Ryan Dezember and Vipal Monga—The Wall Street JournalPistachio industry looks to reposition product amid supply boom by John Cox—The Bakersfield CaliforniaRelated Episodes218: Is China or the U.S. More Vulnerable?232: Is It Time To Invest In Commodities?328: Are You Underweight Chinese Stocks? Pros and Cons of Investing in ChinaSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.Topics covered include:What are the differences between shocks and vulnerabilitiesWhat are the four main vulnerabilities the Federal Reserve monitorsHow deleveraging and demands for liquidity lead to market stressesWhat are the types of money market funds and how were they impacted by the Covid 19 shockHow was Treasury bond trading impacted by the Covid shockWhy the Federal Reserve stepped in to stop the market contagion from spreadingWhat are the downsides to central bank interventionsWhat individual investors can do to protect against future shocksThanks to Mint Mobile and Truebill for sponsoring the episode.For more information on this episode click here.Show NotesPresident’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the TreasuryReport of the President’s Working Group on Financial Markets: Overview of Recent Events and Potential Reform Options for Money Market Funds, December 2020—U.S. Department of the TreasuryU.S. Credit Markets Interconnectedness and the Effects of the COVID-19 Economic Shock by S.P. Kothari, Dalia Blass, Alan Cohen, Sumit Rajpal, and SEC Research Staff—U.S. Securities and Exchange CommissionFinancial Stability Report November 2020—Board of Governors of the Federal Reserve SystemHow Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisorOvernight Index Swap by James Chen—InvestopediaCash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—InvescoRelated Episodes270: Repo Rates Soared—Here’s Why It Matters291: How To Survive the Coronavirus (COVID-19) Shutdown305: Are Banks Safe?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

When should you protect against rare, but extreme events? When should you self-insure? Under what circumstance should you sell tail risk protection to others?Topics covered include:How tail events differ from tail riskWhy volatility is not the best measure of risk for individualsWhat does it cost to protect against large stock market lossesWhy younger investors can take more risk due to their human capitalHow does the profit wheel options strategy workHow the catastrophic power outage in Texas exemplifies tail riskWhy individuals need to build more reserves because the economic system is too efficient and vulnerable to breakdownsThanks to SmartAsset and Babbel for sponsoring the episode. Use code DAVID for Babbel to get three months free.For more information on this episode click here.Show NotesAverage Weather in San Antonio Texas, United States—Weather SparkUpdate on the CBOE BuyWrite and PutWrite Option Indexes, October 2018—Asset Consulting GroupThe Texas Freeze: Why the Power Grid Failed Katherine Blunt and Russell Gold—The Wall Street JournalHis Lights Stayed on During Texas’ Storm. Now He Owes $16,752 by Giulia McDonnell Nieto del Rio, Nicholas Bogel-Burroughs, and Ivan Penn—The New York TimesWhen More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. MartinRelated Episodes250: Investing Rule One—Avoid Ruin283: Why You Should Care About Carry Trades321: How to Analyze Complex Investments323: The Economy Is Not A MachineSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to structure employment so workers are more creative, productive, and happier.Topics include:What percentage of employees work at home due to the pandemicHow many hours per week do men and women work in both paid employment and unpaid caregivingHow workers have been allocating the time saved by not commutingWhy the economy would still prosper if we worked only four hours per dayWhat is the cult of efficiencyWhat is the difference between leisure and amusementWhy employers reward busyness at workHow work can be more satisfying and createThanks to LinkedIn and Policygenius for sponsoring the episode.For more information on this episode click here.Show Notes60 million fewer commuting hours per day: How Americans use time saved by working from home by Jose Maria Barrero, Nick Bloom and Steven J. DavisMental health: C-suite struggles in the pandemic by Rachel Ranosa—Human Resources DirectorDeep Work (Rules for Focused Success in a Distracted World) by Cal NewportIn Praise of Idleness by Bertrand Russell—Harper's MagazineDo Nothing: How to Break Away from Overworking, Overdoing, and Underliving by Celeste HeadleeAristotle's Nicomachean Ethics by Aristotle translated by Robert C. Bartlett and Susan D. CollinsRest: Why You Get More Done When You Work Less by Alex Soojung-Kim PangThe Art of the Siesta by Thierry PaquotWhen More Is Not Better: Overcoming America's Obsession with Economic Efficiency by Roger L. MartinRelated Episodes107: Work, Freedom and Leaving A Legacy184: Massive Job Losses Are Inevitable But There Will Still Be Work323: The Economy Is Not A MachineSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why has silver jumped to its highest price in eight years. What you need to know to invest in silver.Topics covered include:What drove the huge spike in silver purchasesHow silver differs from meme stocksHow hedge funds are positioned with regard to silverWhat are three ways to invest in silverWhat is the annual demand and supply for silverWhat are the reasons to own silverHow good has silver been as an inflation hedgeWhat is the gold-silver ratio and how to use itWhat happened when the Hunt brothers tried to corner the silver marketWhat evidence is there that the silver market is manipulatedThanks to Mint Mobile for sponsoring the episode.For more information on this episode click here.Show NotesSilver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy by Eddie Spence, Jake Lloyd-Smith, and Yvonne Yue Li—Bloombergr/wallstreetbetsSilver price retreats rapidly in blow to new retail buyers by Henry Sanderson and Neil Hume‘What’d You Miss?’ Full Show (02/01/2021)—BloombergSilver Price Chart—BullionVaultSilver Supply and Demand—The Silver InstituteUnderstanding Futures Expiration & Contract Roll—CME GroupSilver $50: Three Years After the “Shortage” by Miguel Perez-Santalla—BullionVaultJPMorgan Admits Spoofing by 15 Traders, Two Desks in Record Deal by Tom Schoenberg and Matt Robinson—BloombergCME Hikes Silver Margins After Prices Surge to Eight-Year High by Yvonne Yue LiSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How coordinated buying by retail investors has turned the table on Wall Street. Are there signs of a market bubble?Topic covered include:What are meme stocksWhy GameStop's stock (GME) has soared to over $300 from $17 in less than a monthWhat are short squeezes and gamma squeezes and how they can push up a stock priceHow short-sellers including hedge funds are losing big against individual investors on the wallstreetbets subredditIs coordinated buying of options and stocks by individual investors illegal?How market flows into stocks are taking precedence over fundamental dataIs the stock market in a bubble and how does the current market environment compare to the 1999 Internet bubble and the 2006 housing bubble?Thanks to Truebill for sponsoring the episodeFor more information on this episode click here.Show Notesr/wallstreetbetsFOR POSTERITY—Almost Daily Grants 1.25.21GameStop can’t stop going up by Jamie Powell—Financial TimesReddit: bull attack by Jamie Powell and Philip Stafford—Financial TimesHow WallStreetBets Pushed GameStop Shares to the Moon by Brandon Kochkodin—BloombergSubmit Your Pick for the Next Meme Stock Here posted by u/AssPowers 2/18/20—r/wallstreetbets17 CFR § 240.10b-5 - Employment of manipulative and deceptive devices.—Legal Information InstituteHow'd You Guys Manage to Win so Big it Made These Old Guys Drown in Their Tears? posted by u/bawse 1/24/21—r/wallstreetbetsFive Things You Need to Know to Start Your Day by Cormac Mullen and Tracy Alloway—BloombergTweet by Paul Kedrosky (@pkedrosky) on 1/25/21Baupost’s Seth Klarman compares investors to ‘frogs in boiling water’ by Ortenca Aliaj and Eric Platt—Financial TimesUS stock rally drives ‘ludicrous index’ towards dotcom era heights by Eric Platt—Financial TimesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.