Friday, January 15, 2021

Dollars to GDP Ratio - AKA : "Money Printer Go BRRRRR"

I am thankful because after a year long stretch writing books, putting together seminars, and doing my taxes, for the first time in a long time I have the time to do an economics piece. 

This will be short and nothing you don't already know, but the numbers are shocking when you put them together.  And what we'll be looking at today is the numbers of dollars floating around in the economy, versus the GDP it presumably produces.  

In short, I took the monetary base (the narrowest measure of money in circulation) and divided it by GDP.  Ideally this ratio should remain flat as it is not the amount of money circulating in the economy that produces GDP, but the industriousness and entrepreneurial hunger of its citizens.  Printing off money only leads to inflation, and truly (bar the inflationary or deflationary effects money supply shocks cause the economy) is irrelevant to the long term, fundamental productive capacity to this or any other economy.  

However, politicians are stupid and they think that in making "Money Printer Go BRRRR" we can print ourselves out of economic/financial crises, when all we really do is spread the misery around to all Americans through higher inflation and a diluted currency.  And so to measure this delusion I wanted to see how many dollars we are printing into circulation relative to the GDP we produce using those dollars.  And the chart is nothing you wouldn't expect.

Starting in 1959 we used one dime to produce one dollar of GDP.  This slowly decreased over time to a nickel in the 1970's where it stay until 2008.

Why 2008?  Because this is when the financial crisis hit and then President George Bush Jr. (among government and Fed economists) decided it was a good idea to make Money Printer Go BRRR and double the money supply IN TWO QUARTERs.  The monetary base jumped from $868 billion to $1.6 trillion just 180 days.  

The money printer continued to go BRRRR under the in-coming Obama administration where Barry took the monetary base from $1.6 trillion to almost $4 trillion, more than quadrupling the money supply from it's 2008 base.  

As the economy slowly recovered under the late and last term of the Obama administration, they pulled back on the money supply, lowering the monetary base to $3.6 trillion.  President Trump continued this trend further lowering it to $3.3 trillion, the lowest it had been in nearly a decade.

But then a pretty serious cold hit the world, people lost their communal shit, we shut down the economies of the world, which once against prompted economists, governments, presidents and parliaments to do what they do best - make Money Printer Go BRRRRR again.  And in that time President Trump added nearly 2 trillion to the monetary base, increasing the money supply by 56% in just one year. 

When you tally up the numbers, we increased the money supply by almost 600%, but GDP only increased by 41% during that same time.  And so what used to take a nickel to produce $1 in GDP, now takes a full quarter, implying a real inflation rate of 500%.

Now, of course, people will look and say, "I don't see 500% inflation!!!!  Milk is still $2/gallon.  Gas was just at a $1/gallon last year!  And my video games are still only $55 for a new release."

Which is all true.

But the inflation goes where the financial system channels it, and the banking system lends money out to only some key areas, which have all seen prices go up by around 500%.

The stock market is up 400% from its 2008 lows.  Housing about the same.  Tuition is only up around 200-300% depending on which type of school you're going to. So are rents.  Crypto-currencies and precious metals have certainly taking an interesting jump, haven't they?  And I can't believe you idiots are actually paying $36,000 for the average price of a new car.

Yes, my fine, college-educated Millennial.  You're right.  The price of a pound of cheese is still 45 cents.

Oh...but what's that you say?  You live at home because you can't afford the $2,500/month rent at the age of 33?  Well, good thing we made money printer go BRRR and you got all that "free money" under Obama.

To regular readers, this observation is nothing new.  We have an IQ above room temperature and in having said IQ we know printing off pieces of paper does not magically lead to increased economic production.  It only dilutes the currency and lowers our purchasing power.  But I am getting mighty sick and tired of the completely ignorant, idiotic, and uneducated Americans who cannot grasp this simple concept.  The average college-educated 20 something who on one hand demands the government pay for everything and make sure nobody suffers any consequences of their stupid economic decisions by printing money, but then bitch and whine about the price of housing, rent, health care, tuition, transportation, etc, when that money finally settles where it was going to settle.

You people, and by that I mean the general American public, are fucking retards who deserve all the economic pain, malaise, debt, and stress that comes with it.  And I find no greater joy than watching boomers take out reverse mortgages on their homes because they didn't save up for retirement, millennials panhandle for the taxpayer to bail them out of their sociology degree, and Gen X'ers constantly drawing equity from their artificially inflated home prices to buy trinkets to remain popular as if it were still middle school.  

You will die impoverished, angry, and above all else confused because you didn't take the time to understand basic economics.

You can hire Aaron at:

Don't Date If You're Pregnant


Thursday, January 14, 2021

A Japanese Version of Asshole Consulting

 I bet this guy is just as surprised he makes money doing what he does as I do.

Tuesday, January 12, 2021

Women's Magazines are Propaganda

It's a dated article, but an important one to show you what diet young women (even in "The Before Time" pre-internet) were fed about the sexes.  

You never stood a chance with this level of propaganda being fed to young women, and by young I mean tweens starting at the age of 12 with magazines like "Teen Vogue" etc.  

I recommend you read this book instead which is not propaganda, but is math, statistics, and facts.

Tuesday, January 05, 2021

"I Can't Get Pregnant"

From an Agent in the Field:

"OH, I always like to share this story. This is the 100% truth; no bullshit; no exaggeration; no hyperbole. I dated this one chick who claimed she could not get pregnant. That she was molested as a child, by her uncle, and I guess her claim was that it messed up her insides and she was unable to ever have a child. So, we dated, and fucked for a while. Then she started seeing a doctor for some kind of problems, and she came to me with a claim that she was allergic to latex. I had, of course, been wearing condoms. So, I just told her, well, they make lambskin condoms, etc. She's like, "Fuck, i'm dealing with a genius here, it seems."  

Eventually, I caught the bitch cheating, sneaking a guy out the back door. (Probably trying to get him to impregnate her and try to trap me into thinking it's my baby, etc.) I dumped the bitch. (Story gets even crazier, as the psycho tried to claim that some guy had raped her - and with a baseball bat! wtf? All a ploy just to get me to talk to her again. One day, a damn rape hotline called me and told me that my ex-girlfriend had been raped by some guy and that she was so sad and really needed to talk to me. I said that's not my fucking problem. I still know her damn phone number and can call her if I wanted to. And, don't ever call me again!)  

Anyhow, about 6 months later, she had a random one-night stand with some guy, and she fucking got pregnant. Her one-night stand guy moved across the country and left her alone. She would go on to have 4 more fucking children - Ms. I can't get pregnant! And this might have been just a simple anecdote, except that I also knew another chick whose father and brother had molested when she was younger. She also constantly claimed that she was unable to get pregnant and have children. So, one night she had a threesome with two friends of mine. She got pregnant. She tried to pin it on her then-boyfriend but he got a fucking DNA test to prove it was not his fucking kid. Eventually she did DNA and found out that it was one of the guys in the aforementioned threesome. 

She tried to chase the father for years, claiming how in love she was, that she just had to have him, could not live without him, blah, blah. He did nothing for awhile, denied it was his kid, but eventually allowing the child in his life and paid child support, etc. but he never wanted to date or marry or be with that crazy bitch. (She eventually killed herself- shot herself in the heart, due to other reasons - severe back pain/surgeries didn't help, etc., and just generally crazy / bipolar, etc.)"

Now buy this damn book so you don't deal with this level of crazy.

Monday, January 04, 2021

The Quickest Path to FU Money

You can take the course here.

Baby Boomer Rationalization Hamsters

Remember the "Rationalization Hamster?"  Well it hasn't gone away and is very strong.  Especially among boomer women.

Sunday, January 03, 2021

Saturday, January 02, 2021

"New Year's Resolutions or Just Pretty Words" - Rule Zero Podcast

Was on with the gang this morning.  Tune in, some good conversation!

Friday, January 01, 2021

"Achieving Minimalism" - New Year's Resolution Course Now Available

From January 2nd through January 6th my course on Minimalism will be available.  The cost is $499, but that is very much likely less than what you spent over the holidays...heck, maybe even New Year's.  You can find the outline by scrolling down here, but it is designed to be the best course out there that gets you to finally spend less than you make.  And while no doubt many of you are resolving to quit drinking or lose some weight, may I recommend you also take a serious crack at improving your finances as well?