Here you go, my friends: Paradigm A: The 2020–21 lurching into fiscal dominance which helped catalyze the geopolitically driven supply-demand imbalance in the US Treasury bond market that is likely to persist – and widen – throughout the duration of this Fourth Turning. Paradigm B: History confirms that when sovereigns get too indebted – specifically when both the stock and flow of sovereign debt supply increasingly exceed available resources to capitalize the leverage – there are only three options to remedy the issue. Paradigm B is the cut phase of the cut → grow → print sequence required to address the geopolitically driven supply-demand imbalance in the US Treasury bond market. Cutting requires a reduction in fiscal expenditures and a reduction in trade deficits; both outcomes increase net national savings. Paradigm C: History confirms that when sovereigns get too indebted – specifically when both the stock and flow of sovereign debt supply increasingly exceed available resources to capitalize the leverage – there are only three options to remedy the issue. Paradigm C is the grow phase of the cut → grow → print sequence required to address the geopolitically driven supply-demand imbalance in the US Treasury bond market. Growing requires the adoption of a growth-friendly policy mix featuring tax cuts, deregulation, and credit easing. The goal of the grow phase is to delever the public sector balance sheet by increasing the denominator (e.g., GDP, GDI, domestic liquidity) faster than the numerator (i.e., sovereign debt). Paradigm D: History confirms that when sovereigns get too indebted – specifically when both the stock and flow of sovereign debt supply increasingly exceed available resources to capitalize the leverage – there are only three options to remedy the issue. Paradigm D is the print phase of the cut → grow → print sequence required to address the geopolitically driven supply-demand imbalance in the US Treasury bond market. Printing requires an erosion of central bank independence that results in the monetary authority monetizing debt – either explicitly via quantitative easing (QE) and/or yield curve control (YCC), or implicitly via reserve management operations (RMOP). The goal of the print phase is to lessen the impact of crowding out by the bloated public sector balance sheet upon the private sector. The Treasury market is atop the global capital structure, so until the US dollar is no longer the dominant reserve currency, it will always attract the capital it needs at the expense of the private sector – particularly low-to-median-income households, small businesses, and interest-rate-sensitive sectors like housing and consumer durable goods. K-Shaped Economy: A K-shaped economy is an economy where high-income households, large corporations, and cash-rich sectors like technology are incrementally achieving prosperity, while low-to-median-income households, small businesses, and interest-rate-sensitive sectors like housing are increasingly falling behind due to limited availability of capital, too-high interest rates, unfair tax policy that overwhelmingly favors capital over labor income, among other things. In aviation terms, a K-shaped economy features the haves flying privately and safely to fancy vacation islands, while the have-nots are flying low-budget airlines to the middle of nowhere… and the planes crash frequently. The post-COVID business cycle is a clear example of a K-shaped economy. E-Shaped Economy: An E-shaped economy is an economy where high-income households, large corporations, and cash-rich sectors like technology are incrementally achieving prosperity alongside low-to-median-income households, small businesses, and interest-rate-sensitive sectors like housing and consumer durable goods. E-shaped economies are achieved only when fiscal and monetary policy are appropriately calibrated to “grow the economic pie” and distribute wealth morally – two outcomes that many have been deluded into believing cannot coexist due to the loss of Christian values from American politics and the advent of their replacement: economic liberalism, which ranks growing corporate profits above all other human pursuits, including enriching the lives of the very people that create the profits. In aviation terms, an E-shaped economy features the haves and have-nots flying together on a jumbo jet, whereby upper-income cohorts sit up front in first class, middle-income cohorts sit in economy plus, and low-income cohorts sit in the back in basic economy; each cohort takes off, lands – and, occasionally, crashes – together. The 1990s business cycle is a clear example of an E-shaped economy. I hope this education blesses you as both an investor and voter in that it inspires you to make wise choices regarding your family's financial future and the future of our society. Capitalism taken to its (il)logical extreme is no better — perhaps far worse — than socialism. Let's fix our broken form of capitalism with a better version of capitalism before it's too late. I love you. God loves you too. May God bless America. —Skipper 💜🇺🇸