Let's dive in: a spirited chat about U.S. public debt and money creation
As guests of the Brandes Center, Mark Higgins and I discussed the intractable US debt - its origin, consequences, and resolution.
Hello, friends!
On January 28, I had the wonderful opportunity to collaborate with economic historian Mark Higgins at the Brandes Center, a prominent investment think tank nestled in the Rady School of Management at the University of California, San Diego. Under the skillful guidance of the Center’s Director Bob Schmidt, we did a nearly two-hour deep dive into the intriguing topic of the U.S. public debt.
As a special treat, we were joined by around 20 seasoned investors from various corners of the globe. Their thoughtful questions and insights really enriched our discussion—seriously, it was a blast!
Mark Higgins, a veteran institutional investor, is an expert in U.S financial history. His book, Investing in U.S. Financial History: Understanding the Past to Forecast the Future, is a must-read! Mark kicked things off with an fascinating historical overview of U.S. public credit, revealing just how far we’ve drifted from the financial principles set by our very first Treasury Secretary, Alexander Hamilton.
About 30 minutes in, I took my turn for a 40-minute chat where I summarized my book, A Black Hole in Economics: Money Creation and its Consequences. I shared some insights on how radical money creation has pushed public debt to ballooning levels that will inevitably lead to some combination of "soft" default and inflation.
We wrapped up the discussion with practical advice on what we anticipate the government might do next regarding this debt issue, and how investors could strategize to navigate these choppy waters. (Spoiler alert: value investing will be your salvation!) We even shared some notes on crypto currencies and gold.
If you get a moment, I'd love for you to check out this video and give it a “like.” Your questions and comments mean the world to us!
Thanks for being here.
HardmoneyJim, February 25, 2025