Recently, DoubleLine Capital CEO, “the new king of debt” Gonzales warned investors that inflationary pressures in the U.S. economy are growing. He suspects that the central bank is only “guessing” that the impact of inflation is “transitory”. He believes that the trillion dollar bill approved by Congress will lead to deficits, and U.S. citizens will bear 163 trillion dollars of debt, equivalent to more than five times the $28 trillion national debt.
Recently, in his hour-long speech on the theme of inflation, Gonzales attacked Biden’s plan to raise capital gains taxes on taxpayers earning more than $1 million, arguing that concerns about higher capital gains taxes are already having an impact on the market. He argued that high-beta stocks (high-beta stocks) and other speculative investments, such as bitcoin, have the most to lose due to increased capital gains. “After all, who wants to take a chance on the long term if they need to hand over half their winnings to the government?”
Gonzalez also criticized the federal government for embracing a monetary policy similar to MMT, combining fiscal spending and monetary stimulus in an attempt to cover up the economic damage caused by the New Coronavirus (the Chinese Communist virus). He said, “We observed that 34% of household spending last month came from the government …… Once the pandemic hit, a growing segment of the U.S. population became steadily more dependent on the government.”
Gonzalez also noted that when the Fed’s balance sheet explodes, the central bank will monetize much of the new debt. He said, “The surge in debt doesn’t fully reflect how much the federal government owes. There is still some unfunded debt, and if you add in all the local, state and federal debt, U.S. citizens would be on the hook for $163 trillion in debt. That would be more than five times the $28 trillion national debt.” “When you add up all the unfunded liabilities at the federal state and local level, it’s 775 percent of our current total economic output.”
Recent Comments