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Dear Fellow Traveler, The Fed pulled off the greatest wealth transfer in human history… But the pundits are calling it “economic recovery.” The top 10% of wealth holders added $5 trillion in just three months. That’s $5,000,000,000,000 flowing straight to people who already own everything. Since 2020, the top 10% have accumulated over $40 trillion in additional wealth. The top 0.1% - those worth at least $46 million - have nearly doubled their wealth to $23 trillion. How? The same way every central bank in history has operated: Print money, hand it to the connected, watch assets inflate. Of course, “wealth” is a subjective term when it comes to money printing… The real question is… How wealthy do you feel? This is the Cantillon Effect on steroids. New money flows to those closest to the printing press first. The top 10% own 87% of all stocks and mutual funds. When the Fed floods markets with liquidity, guess who benefits? Corporate equities held by the top 10% jumped from $39 trillion to $44 trillion in one year. That’s $5 trillion in gains from money creation, not wealth creation. Meanwhile, the bottom 50% saw their wealth increase 6%. Sounds good until you realize that’s crumbs from a $5 trillion feast. This is called a “K-shaped economy”- the top goes up, while everyone else remains stagnant. All the while… food prices go up… housing prices go up… the stuff that matters goes up. The stuff that doesn’t? Phones… televisions… computers… AI subscriptions… They go down… and we pretend that real inflation is whatever the government says… (Look at the Chapwood Index for hints into where prices really are in America…) The top 10% now account for 49.2% of all consumer spending - the highest level since 1989. We’ve created an economy dependent on 208,090 ultra-wealthy Americans spending their Fed-inflated gains. But go… ahead… blame capitalism… This permissionism system - all of it - depends on asset prices never falling. As Mark Zandi told the Wall Street Journal, if the “richly overvalued stock market” stumbles, the wealthy stop spending and the whole economy falls… We’ve built a house of cards on Fed liquidity. The same people who crashed the economy in 2008 now control 87% of the equity market. If and when this unwinds, it won’t be pretty. The Fed solved the last crisis by creating an even bigger one. They just made sure their friends got paid first this time. You have to learn how it all just works… What else do I think? Don’t worry… I won’t hold back… No. 2: QE is Coming… Don’t You Worry…Michael Howell dropped a bomb this afternoon… the Global Liquidity expert warns that U.S. financial liquidity is falling in the U.S. Reserves are under pressure… while liquidity continues to increase across China. Howell’s warning? We could see a contraction in U.S. liquidity by $300 BILLION in the next nine months. What’s the problem? That might weaken the existing repo markets and collateral-backed lending system that supports the global financial markets. Essentially, if the Fed doesn’t intervene, we could soon see some significant developments. I implore you to follow the liquidity and the momentum. When it breaks… we’ll be out in front of this… That’s what the Capital Wave Report is all about.. I expect that the Fed will stop its QT in the next two meetings… and then? BRRRRRRRR…. No. 3: No… It’s Called The HEDGE of TOMORROW…“The debasement trade…” That’s Yahoo’s “CALL OF THE DAY…” It’s what all the pundits are repeating after JPMorgan Chase (JPM) stated that the reason Gold and Bitcoin are in demand is due to the ongoing dollar debasement… Can’t remember where I heard that before? We wrote about “the debasement trade…” back on September 13, 2025… More important… we don’t call it that. For 18 months, we’ve called it the “HEDGE OF TOMORROW.” If you’re recall… back in our Hedge of Tomorrow report in March 2024, we recommended gold at $2,100… Bitcoin at $60,000… and silver at $25… Why? Because the shift in the Treasury markets and the weakness in the dollar trade had reached the tipping point. I mentioned in my April Shohei Ohtani piece that debasement is approximately 6% to 8% per year when factoring in shadow banking, and that this rate should be added to the 3% inflation we are currently facing. Therefore, you need to generate a return of approximately 9% to 11% per year to stay afloat. Isn’t finance great? Thanks, Fed… Thanks, fiat currency!!! No. 4: Go Cubs Go…And finally… We’re in for a weekend of good baseball. I don’t think we could ask for better matchups in the Divisional Round- and I can see all four of these series going to a fifth game… But… you know what’s going to be a huge pain in the butt? They have games on TBS… HBO Max… Fox… Fox Sports 1… truTV (WHY?!), and FS1… I might as well fly to one of these games based on the sheer subscription prices… Remember when baseball was effectively a public service… and part of America? Now… just more extraction… Shocking… They’re going to be an oxygen tax one day… Finally… I’ll be back tomorrow with a story that you’ve heard before… but NEVER this way… It’s the story of a man and a central bank… 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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