Postcards: I'm Launching a New Business

Are you in? We'll help the government meet its green goals and benefit from Bidenomics simultaneously. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: I'm Launching a New Business]( Are you in? We'll help the government meet its green goals and benefit from Bidenomics simultaneously. [Garrett {NAME}]( Apr 10   [READ IN APP](   Market Update: We’re back under the 20-day moving average on the S&P 500, the Nasdaq 100, and the Russell 2000. As I said this week… HEDGE. We have minutes coming out from the Fed in a little while, but the CPI number this morning has just forced the central bank’s hand. We should have gone up to 6% last year - because we’d be entering recovery about now. Instead, the Fed tried to thread a needle at a time when fiscal expansion drives inflation, and global liquidity continues to expand. It continues to stun me that people with so much power and influence over the lives of so many citizens get to make excuses and keep their jobs. But that’s the world. --------------------------------------------------------------- Dear Fellow Expat: The “Leadership in Energy and Environmental Design” is a worldwide green building certification program. Since there is a never-ending desire by the government to “green” everything under the sun… here’s a new business idea… We’d create special “LEED Certified” windows to ensure no air spillage can seep through the cracks around the window frame. They will be brand new, sourced with “equity and inclusivity” in mind, and ensure we are spending money to ensure environmental justice. They’ll have a ribbon-cutting ceremony for us. Mayor Pete will be there. But… Here’s how we exploit the program. These windows are also specifically designed to shatter at the slightest breeze. Into a million little pieces that can’t cut anyone. In the process, we’d create thousands of janitorial jobs to help clean up the mess and restore “justice” and create many new GREEN jobs to fix the windows. Follow me here… Now, you might think this is a total waste. But not when we dress up and play Keynesian economist… … every window the government replaces will count toward our Gross Domestic Product. The wages from the janitor… that will be spent in stores - and generate GDP. The new manufacturing? More GDP growth! We’d want to ensure we borrow most of the money to kickstart the cycle. Oh… look how the money moves around… in a circle… what a great idea. This is the philosophy to which many of our economic leaders subscribe. It’s utterly insane. The Broken Window Fallacy I’m talking about a system largely based on the "broken window fallacy," an economic concept introduced by the 19th-century French economist Frédéric Bastiat. This fallacy illustrates why destruction doesn't benefit the economy, contrary to the idea that spending to repair damages (like a broken window) stimulates growth. The fallacy lies in overlooking what the spent resources could have otherwise accomplished if not for the destruction. Instead of “fixing windows,” we could have put taxpayer money into education. Or perhaps we could have… done nothing. Sometimes, doing nothing is the best course of action. What’s worse - it’s not just the poor allocation of resources. We also must note that the U.S. government spent $2.50 for every $1.00 in economic growth it generated at the end of 2023. The idea of broken windows is not limited to economics. New York Gov. Kathy Hochul said her leadership team is solving the state's crime problem after an explosion in criminal activity post-COVID. It’s gotten so bad that the National Guard checks bags when people enter the New York City Subway. Of course, crime exploded thanks to weak deterrence and constantly allowing criminals to walk free despite repeated recidivism. It’s the same with the people now bragging that inflation is coming down after it hit the highest levels in 40 years due to terrible fiscal and monetary spending. “We’re fixing the problem… and our rivals are ignoring it!” they scream. Yes… because these outrageous spending policies and massive monetization levels were responsible for inflation. From the greening of the economy to the COVID relief… from the crime failures to the massive infrastructure spending on trains to nowhere… it’s all a Broken Windows economy that continues to face inflationary pressures, misallocated resources, and a rather ugly debt level approaching a point of no return. Oh… and don’t forget THIS GEM from the news this week. Remember Solyndra? The Green Energy company that cost taxpayers $500 million after it went bankrupt in 2011. The White House just authorized $6.6 billion for a new semiconductor plant for Taiwan Semiconductor (TSEM) in Arizona. Who runs the Arizona subsidiary of TSEM right now and benefits the most? [Ex-Solyndra CEO Brian Harrison…]( BARTENDER!!! [Upgrade to paid]( Getting Equal As I’ve noted… this nonsense will continue. They’re not trying to hide it. This is just how they think that economies should work. The problem is that the aggregate outcome remains inflation, misallocated resources, grift, and downright mistruths about the world around us. In February, the non-partisan CBO released its latest update on U.S. debt expectations; the future isn’t pretty. We’re facing deficits north of 6% come 2034. What does this mean? The erosion of your dollar’s purchasing power. Hard stop. And while a Broken Window business probably won’t scale up into a fictitious window company… We need to take advantage of the situation as best we can. In all its foolhardy policies, the United States government is the largest activist in the world, with a balance sheet north of $6 trillion annually. We continue to look at companies like GEO Group (GEO), which are engaged in a perfect broken windows industry around migration. Rather than build a wall for $21 billion on the border, we’ve just created an industry that will require about $100 billion over the next decade to track, detain, and manage millions and millions of migrants. We’re hoping that GEO can pull back in any selloff right now because we’d be buyers again around the $15.00 level (after our initial coverage began at $13.50). Don’t get mad… don’t get even. Let’s equalize the playing field and take advantage of what this silly philosophy gives us. That’s the game. Meanwhile, greater monetization will require allocation toward gold, silver, commodities, real estate, and the “things that matter.” This is the 1970s playbook… and will remain an essential strategy until we get a Federal Reserve that finally drowns inflation. Stay positive, Garrett {NAME} 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. Under company rules, editors and writers cannot recommend their positions. 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.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()