The great melt up is coming. Now the upcoming melt up is a story about inflation and how it re-accelerates hard. It’s the opposite of the 2008 great recession. This is the great melt up and it’s almost a certainty and I’m already making changes to protect my wealth and here’s what you need to know about what I’m doing to prepare. So in this video I’m gonna break down why hyperinflation is inevitable, how the US debt crisis is going to fuel it and most importantly what you can do right now to stay ahead. Now by the end of this video you’re gonna know exactly how to position yourself, not to just survive, but to thrive and what’s coming.

So let’s go! Alright, jumping right in let’s talk about the melt up. Now just real quickly just so you’re not confused you might have heard me on other shows, Kitco, Stansberry, whatever, or even on my own channel talking about the reverse market crash. Reverse market crash, melt up, about the same thing. We’re talking about a melt up. We’re talking about things going up higher and faster than most people can even imagine and let’s dig into why. Okay, number one, the debt is going exponential. When I’m talking about debt I’m talking about the government debt and when I talk about exponential I’m talking about not just moving up in a linear fashion, but exponentially.

This is the US government debt over a hundred years. This is as of 2023. We’ll look at more current stuff in a minute, but over the hundred years you can see debt sort of here. We had a big jump up here in World War One and World War Two and then basically flatlined again. We jumped up again here, kind of flatlined, and now look at that. That is what we call exponential debt growth. I’ve often shown this chart, I updated it today for you just so you can see this as well. This is going back to 1970 when we got off the gold standard and you can see the rate of debt expansion.

So this red line shows the first trend line, but I wanted you to see the rate of change, right? So we started, we are growing debt faster. Obviously you can see that here, but then look how we started to go going up even faster right around here in the 80s and then right here around the year 2000 we started to go up even faster, right here 2008 of course started to go up even faster, and then right here 2020. This is what we call exponential. What’s next? Well, we go here, we go here, and then eventually we’re going straight up with no end in sight.

Now you have to understand this because this is what’s fueling it. Now, this is up to the minute you can go on to a US debt clock. We are at 35 trillion, 774 billion dollars of debt and accelerating. Now, it doesn’t seem to be a big concern for a lot of people anymore. Now, it could be a good or bad thing. It’s both actually at the same time, but when I say it’s not a big concern, what am I talking about? Well, we’re right in the middle of the US presidential election cycle and typically in the past we would see this to be a very hotly debated topic, a big topic as it should be.

But we can see that for Harris and Trump, the US debt is the elephant in the room, meaning the big topic that nobody wants to address. We can see that both presidential candidates have unveiled costly proposals that will add massively to the ballooning national debt. So Trump, come on, it doesn’t really matter. They’re both gonna add a massive amount of debt. And then of course, it doesn’t matter because under Obama, he added a record amount of debt. Trump added even more debt than Obama and Biden, Kamala added even more debt than Trump.

Every president beats the record. Now, once upon a time, in a land not that far away, the United States ballooning national debt was a major talking point. As a matter of fact, when Trump ran against Hillary Clinton in the final debate in 2016, it had a 12 minute segment on the national debt, 12 minutes just for that. Barack Obama and Mitt Romney clashed on the issue as well back in 2012. And fast forward now, the national debt doesn’t seem to be important. The word debt, the word debt didn’t even make it into the debate between Trump and Kamala.

It doesn’t appear to be a problem anymore. But it is. This is what’s driving markets. And so that’s what I want to bring it to you so you can understand this. So we have $35 trillion in counting the president, both presidential candidates don’t seem to care. And both will probably add another record amount regardless of who wins in the White House. Now, this isn’t an income problem, we need to understand why this debt problem is here. So we can understand how it’s going to affect markets is a very key piece. Now, it’s not an income problem.

It is, of course, it’s always a spending problem, right? And we can see that the primary revenue of the government comes from taxes, like you should probably understand this, right? But we can see that most of it comes from you and I. And this is key to understanding what the outcomes will be. I’ll get to that in a minute. Most of the tax income comes from you and I individual income taxes, we have this big chunk, a smaller chunk coming from Social Security and Medicare taxes. And then we have a smaller tax bracket here of corporate income taxes.

Now, there’s lots of other little taxes here and there. But the majority of it comes from individuals, you and I. These kind of both come together out of businesses. And we’re going to explain why this is a big problem in a little bit. But what we can see in these tax amounts, you can go right to the Treasury website and look, year to date, the government has brought in about $4.4 trillion. That’s how much income they’ve received revenue, $4.4 trillion. The problem is that with 4.3 and change a trillion dollars, they’ve spent 6.3.

So the problem is year to date, we’re not even through the end of the year yet, they’ve already spent 2 trillion more than they brought in. It’s a spending problem. It’s not income problem. Now, the problem with that is what are they spending the money on? Now, I saw a clip this morning which sort of inspired this. I saw Elon Musk, a clip of him talking about this national debt and it being a problem and how we need to do something about it. But do what? What can we do? We’ll get to some solutions in a minute.

But what do I mean by that? Well, let’s take a look. What are they spending the money on? Well, we can see that $1.34 trillion of that is spent on Social Security. Are we going to cut that? All those old people that are now depending on Social Security, we’re just going to cut their income and then what? We have $850 billion on Medicare. We have a trillion dollars now on interest on the debt. We have to pay the interest on the debt. Now, you might hear people saying, well, we owe the money to ourselves.

No, we don’t. We owe the money to you and I. If we bought treasuries, we owe money to institutions, we owe money to other governments and that interest has to be paid. $824 billion on health, $800 billion on national defense. If you haven’t noticed, we’re fighting multiple wars across the world, incomes, security, et cetera. So where do we cut? Where do we cut? And so the problem is, well, we don’t. So we have a spending problem and we can’t really cut it. And as we can see, the problem is getting more acute because here we have as of August of 2024, it’s well over a trillion dollars just in interest alone.

Now, which is part of a big reason and a big driver as to why the Fed is starting to lower rates. So we can start to bring this number down. But of course, if we lower rates, that brings a whole other problem. If we’re going to come back to that in a minute. Okay. So basically we have a lot of spending we have to spend on. Can’t really cut that. Two, we’re spending way more, 50% more than we’re collecting. And so what do we do? Well, we have to use debt. We have to borrow the difference.

That’s why that rate is going up so fast. Okay. So why is this a crisis? Is this becoming acute? Right? Well, let’s take a look. So we can see, as I already showed you, the interest is unsustainable. We’re over a trillion dollars just in interest alone. But and again, that money is owed to others. Not like we can just default on that. We’re going to default to your retirement account. We’re going to default to other countries. What happens then, right? So you have to understand these types of things. Now, this shows basically where we’re at right now.

And this shows where government, CBO, congressional budget office, where they project government revenues to go, they expect them to go up a little bit through 2054 over the next couple of decades. But the problem is that spending is projected to go up even more. So look at the size of the gap here. Look at the size of the gap here. So they don’t see any solution for this in the future. There is no potential future where spending even stays within the difference of how much we collect. No, we’re going to continue to spend more than we collect that gap will continue to get wider and wider and wider.

Now, not just that, but then because we have to use debt in order to fuel that then of course the interest on the debt continues to go up. This is about where we’re at right here. This is through 2034. And you can see how much more the interest on the debt is supposed to go up. So eventually, that’s what the clip from Elon Musk was saying, like, eventually, all we can afford is just the interest. We can’t afford social security or Medicare or military defense. And that’s basically where we’re at. That’s the plot that we’re on.

Now, you might say, well, Kamala wants to tax everybody. So if we tax unrealized wealth from these greedy billionaires, that would certainly do something. Well, not really. We have something called Hauser’s law. And it’s basically empirical evidence that shows regardless of what the tax rate is, if the government could tax us at 10%, the government could tax us at 90%. Regardless of what the tax rate is the percentage, the amount of taxes that the government collects as a percentage of GDP stays about 19% right in that range. So whether they tax 10% or 9%, they only will collect about 19% 19.5% of GDP.

Why? Well, because when they tax us more, we have less money to invest, less money to invest in our business, less money to spend. And so GDP goes down. And if they let us keep more of our money, we have more to spend. So GDP goes up. So the percentage of GDP stays about the same, but they either get a bigger piece or a smaller piece of a bigger or smaller pie. So then if that’s the case, we have another problem. And this is even a bigger problem. And that is that okay, so the interest is unsustainable, it’s going up to where it’ll be the only thing we can afford.

Number two, we owe that interest to others, we can’t stop paying it. Now, a lot of people would say, well, then why don’t we balance the budget? Why don’t we just get the government to spend what they bring in? That seems like a logical explanation. But the problem is, if they were to balance the budget, what would happen? Well, what would happen would be millions of people would lose their jobs. All of these businesses would be shut down. They were receiving this money, right? That extra $2 trillion is going to fuel the economy.

So if they were to balance the budget, which of course seems like a good thing, we would have a massive recession. Now, a massive recession is a problem when we’re already spending more than we’re taking in. We can’t afford that the government can’t afford a recession. I’ve done a video breaking that entire topic down. But one of the reasons why is as Luke ramen says here, this is Alan Greenspan, who was a previous Fed chair, back in 2015, he said that a large percent of US income tax receipts are tied to a rise in stock prices.

So the stock prices tie into the income taxes that the government receives. That means if stocks go down, the government brings in even less money, which means bigger deficits, more debt, we can see that when the US stock market just stops, so the stock market doesn’t even have to go down. If the stock market just stops rising, it not falls, but just stops rising, that will put pressure on the receipt side of the US fiscal picture. Why? Well, because a lot of those income taxes the government receives are from capital gains.

So when your asset prices go up, you get taxed on the difference. But if asset prices stop rising, not crash, but just stop rising, then their tax receipts plunge, but the government can’t afford the recession. They can’t afford tax receipts to plunge because they’re already bringing on too much debt. Okay, well, Mark, that sounds pretty bad. Well, yes, it is. As a matter of fact, we have only bad options. As I said, you can’t balance because half the economy will get shut down. All those businesses are out of business. Millions of people lose their job.

You can’t do that. If we don’t, if that happens and stock receipt, stock prices don’t go up, then tax receipts plunge. As a matter of fact, in a typical recession, tax receipts will plunge about 12 to 15%. But we’re already running massive deficits. So that’s a big problem. And then the next question would be, well, can’t we just continue printing? And of course, that is the option that we’re left with. But the problem is then get ready for more inflation. Just when you think the Fed, the government has inflation under control, they don’t inflation is about to take off again in a very big way.

As a matter of fact, potentially hyperinflation. Now, the technical definition of hyperinflation is a 50% increase in prices month over month. I don’t think we’re gonna get there. I’m not saying that. But maybe there’s a different definition of hyperinflation. You know, used to hear like, when I was a kid, a soda used to be 50 cents. But what if we now say, remember last year, when it was 50 cents, right? And that’s where we’re at when we noticed the rate of change, when we start to notice the rate of change, it starts to affect the way that we buy, save and invest, at least it should.

So let’s break that down. Okay, so I do want to throw out one caveat here, there is maybe a Hail Mary potential hope for us. And that is that we could grow our way out of this through some technological breakthrough. And that would probably get something like a breakthrough in energy that would lead to massive efficiency gains. If we could have that, maybe, just maybe we could, we could grow our way out of this would probably also require the government to get rid of a lot of regulations that could unleash the economy to go along with the efficiencies.

So what am I talking about? Well, potentially, you hear me talking a lot about the sixth quantum wave. So about every 50 years, we have a technological revolution, I call them a quantum wave. And we’re just entering the sixth one right now. We are seeing finally, the attitude around nuclear is changing the US is trying to change maybe slowly, maybe there’s some hope, maybe we could get one, just one nuclear reactor going in the last 40 years. China has 150 under construction right now at this very moment. But if we get nuclear, if we get AI, if we get decentralization, and all of those combined together, then maybe we get the energy explosion, the efficiency gain that we need, and maybe we could just grow our way out of this.

But that’s a Hail Mary. I’m not going to be holding my breath on that. This sort of illustrates if you haven’t seen me talking about it, you can see this sort of illustrates the sixth wave as I’m talking about industrial revolution, steam engines and railways, still electricity, oil, automobiles, telecom. And now here we are on the sixth wave right here. Okay, so we could potentially have that. But don’t count on it. So what are you going to do? Well, there’s a couple things we have to invest, we have to. Now, if you don’t make that much money, you need to make a little bit more money, and you need to live on a little bit less and you have to invest, you just have to otherwise, you’re going to continue falling further behind, there is not going to be a reset, not a chance to get in.

So in 2008, in the Great Recession, home prices, stock prices plunged 50 60%, depending on where you’re at. So you had a chance to get that home, you had a chance to buy back into the stock market at a discount. But I don’t believe my base case is not is that we won’t get that chance again. There is no reset. Now this is way worse. My kids, your kids won’t get a chance to get back in things will just keep running away. So we have to keep up. Now for the average person, maybe consider buying a home.

I know there’s a lot of people telling you that the housing price, the housing price is going to crash like 2008. This is not 2008. It’s the opposite of that. If you plan on being in that home for more than three years, I’d highly consider this. Why? Well, because if you continue renting, your rent prices will continue going up every year. However, as home prices go up, and as inflation destroys our currency, the value of it, the home price will get cheaper and cheaper and cheaper. So in three years from now, the home your monthly payment on home will be cheaper.

But if you’re renting in three years from now, the rent will be a lot more expensive. My base case is within five years, home prices, the national mean home prices are up 50%. That’s what I believe we’re expanding the monetary base by 10% a year, that’s five years, that’s 50%. Number two, for the average person, you can invest into the S&P index, the S&P index is not going to get you ahead. These are not getting you ahead. These are just keeping up. These keep up with the rate of debasement, at least you won’t be losing money.

Now, if you want to get ahead, if you actually want to make money in this environment, then you have to buy assets that are aligned in this Q wave, the quantum wave. So these are the ones that are aligned in energy, AI, Bitcoin, decentralization, and robotics. It’s in this Q wave assets, and commodities that align with that if you want to get ahead. So those areas you want to invest. I talk about this all the time. As a matter of fact, next week, I’m doing a live presentation, I’ll break down all the assets that fit within this.

If you want to come hang out, it’s all free, I’ll show you all the charts, I’ll run through all the assets, I’ll tell you the ones that I’m buying. And I do live Q&A, so I can answer all the questions you have, we can talk about how this could be implemented in your own portfolio. Like I said, it’s all free. I’ll put a link down below or click on this QR code right here. If you want to come learn more about this, but either way, whether you want to keep up, or you want to get ahead, you need to do something, because we are not going into another great recession, we’re going into the great melt up.

And it’s not going to give you another chance of reset to get in. If you want to know more about investing through this, you might want to check out this video here on the investing black hole. Otherwise, leave me a comment, let me know what you think hit the like button if you liked the video. That’s what I got right to your success. I’m out. [tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.