Free Weekly Email 6.10.25
Nothing Stops This Train w/ Lyn Alden | Bitcoin 2025
Lyn Alden breaks down the U.S. fiscal deficit crisis, explaining why "nothing stops this train." She explores the decoupling of deficits from unemployment and its impact on asset prices like Bitcoin. Learn how federal debt growth outpaces private sector credit, driven by demographics and policy. Discover why Bitcoin thrives in this fiscally dominant environment.
Not only Bitcoin but gold and other hard assets are likely to do well in this environment.
The $10,000 Solution Vivek's Radical Plan to End America’s Debt Crisis
I like the idea, but it's likely never to happen. The assumption of 15% annual growth is also somewhat ambitious. Maybe they can start a pilot program in Ohio if he is elected Governor.
AI Boom Reaches the Grid
A mania associated with electric production companies providing electricity to technology enterprises pursuing Artificial Intelligence (AI) agendas looks familiar. An announcement this week by Meta that they signed a deal with Constellation Energy (CEG) and the corresponding surge in the share price of CEG rang a big bell in our minds. Our regular readers will be reminded that a few weeks after the 2024 US presidential election, we made the case that we were in the stock market at the polar opposite of the late-1980 euphoria over President Ronald Reagan’s victory. Stocks were massively under-owned in 1980, interest rates were sky high, and inflation had run rampant.
We will continue this line of logic by comparing where we were in electric production investing in 1981 as compared to today. Someone once said, “Those who don’t know history are doomed to repeat it!”
I believe there is potential to make money investing in the energy sector, particularly in relation to AI and data center growth. However, buying an overvalued electric utility is not the way to go in my view.
Insider buying of Canadian oil and gas stocks at 'some of highest levels we’ve seen' in 5 years: BMO
Insider stock buying among executives at Canadian oil and gas companies is near five-year highs, according to a BMO Capital Markets analyst who tallied up $54 million in open-market purchases in the 90 days since March 1.
Canadian oil and gas stocks have been a rollercoaster ride for investors over the past three months. U.S. President Donald Trump’s trade tariffs created unprecedented uncertainty for the industry, which relies on America as its top buyer of crude. At the same time, fears of a weaker economy due to global trade are weighing on forecasts for demand.
There are several reasons why a company insider might sell their stock. They may need the money for tax payments, a new house, to diversify their portfolio, or medical bills, among other things. There is only one reason that company insiders buy their own stock: they believe it will increase in value in the future.
Gavekal:Trillion-dollar deposits drive the rise of HK stock
After two months of the tariff trade war, the U.S. dollar has weakened, resulting in a situation where countries are withdrawing investments from the once attractive U.S. market. The trillion-dollar deposits that have been rapidly accumulating in Hong Kong's banking system over the years will need to find new destinations. Louis-Vincent Gave, founding partner and CEO of the macroeconomic research firm Gavekal, expects that Hong Kong stocks will benefit, especially high-dividend stocks.
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Louis is bearish on the U.S. dollar, as Trump has abandoned efforts to improve the fiscal deficit. In the beginning, Trump talked about cutting spending to reduce the fiscal deficit, and the Government Efficiency Department led by billionaire Musk initially claimed it would cut spending by $2 trillion. Two months later, that target was reduced to $1.5 trillion, and the talks kept diminishing to $150 billion, and the latest figure is just a few hundred billion. Treasury Secretary Bessent is no longer discussing the fiscal deficit, only talking about accelerating economic growth.
'However, the U.S. government will not default on its debt, but will repay with what I call monkey money. International investors have already realized this and are beginning to moving money from from the U.S assets.'
I am bullish on emerging markets, including China and Hong Kong. We are playing the Hong Kong market in the Actionable Intelligence Alert Newsletter.
URANIUM Price HAS TO Go Much Higher to Meet Demand: 'Math is Math'
Mike Alkin and Justin Huhn crunch the numbers on uranium and the related mining equities and their conclusion is that higher prices are inevitable, as supply deficits have not yet been prices into the market as demand continues to ramp up. The duo discuss recent price action in the sector, who will be the next big producer, how fuel buyers operate and what it means for uranium prices, and much more.
We are in a uranium bull market and will be in one for many years. Uranium prices must go up.
That’s it for this week.
John Polomny