Circle of Jerks
Tuesday August 18. 2026
MACRO:
The US Treasury holds Euro denominated bonds issued by the French government. United States Secretary of the Treasury is Scott Bessent sold those bonds converting the bond into Euros and then purchased Yen in order to drive the price of the Yen back up so that the Bank of Japan doesn’t have to raise interest rates to support its currency so that Japanese citizens who are quite thrifty savers and generally risk averse will continue to buy US Treasury bills (and bonds) so that the Trump can pay to have the reflecting pool de-mosquitoed.
Again.
This time maybe with the understanding of how to hire contractors. Maybe consult Angie’s List.
Washington DC is the location of the US capital because no one wanted the land as it was a swamp. It’s literally built up swamp.
Jokes aside, that decision has basically told the world the US Treasury can’t be trusted. There are literally written down guidelines about not intervening in another nations currency. I am paraphrasing but the line reads “don’t do that dipshit.”
Bessent could have just printed money or borrowed money but he didn’t. He dumped French bonds to create a pool of money to give to some hedge fund that was holding Yen and wanted out.
If you are just now realizing that the entire world’s financial system is based on synthesizing money without literally just synthesizing it so that the people who hold on to their money are given more money for nothing.
Welcome to reality.
What Nvidia is doing is not really that much different than what Nations do all the time. One of the reasons companies want cryptocurrencies is it turns them into a pseudo-State. Anyways.
Nvidia gives money to an SPV who then borrows more money from institutions and then gives money back to Nvidia in exchange for GPUs that are then rented to companies that Nvidia has invested in. This multiples the money that potentially ends up back with Nvidia. That money has to be printed to actually exist but the US has been doing that the whole time. Everyone, from countries to companies, has been just jerking each other off in a circle the whole time.
It’s just most people don’t really understand how sovereign borrowing works… nor how SPVs work.
Currency is a means to facilitate transactions. As soon as it became a fetish asset that people measure themselves with the world went to shit. There is this quote in The Big Short when Byron Mann says “I’ll tell you how much I’m worth. You tell me how much you’re worth.” I can imagine a 1000 years ago some prince and some banker literally probably did take a stack of coins and measure their dicks while some cute courtier just found them both embarrassing.
As soon as people started to measure their value by the number of dollars everything went haywire with the world. Restore a proper tax policy so people can’t hoard money. Make it so people have to be measured what they have done. We should all be Finnish.
We all know Smaug and Scrooge McDuck are crazy. But, we don’t seem to get it that hoarding paper money (cloth-made) is not really any different than putting gold in a cave and sleeping in it or having a grain silo full of coins. We all know silver stackers are crazy. And those people who hoarded toilet paper the first week of COVID were crazy. And the people who bought reservations for Cyber Trucks thinking they could flip them on Ebay were crazy.
If you walked into a strangers house and it was packed with Pokémon cards, trillions of Pokémon cards, that would be really odd and a sign of mental illness. Right?
I get it. If that person were really, really cute you might put up with it. Priorities.
But seriously, stop worrying about “printing” money. The alternative to “printing” money is “borrowing” money. Which is far worse for you. Because the people we borrow from are people like Scott Bessent.
A complete fools who probably has a diving board mounted on his headboard and sleeps on mattress made of shredded money he stole from the Fed.
It is a lot better to create money when needed out of thin air than to borrow money we have to pay back… which is also just created out of thin air.
MICRO:
Sold the last of ($AMLX) yesterday. And then it took off 55% today (it’s now up 63% just in the time it took me to write this.)
I rarely post trades publicly before I exit - because I don’t want people to follow me into trades. There are many reasons for this.
But, this one I gave away just like I gave away ($SPRB) after I was able to get a decent sized position. These were Phoenix setups similar to Iveric (Example 4) and I was clear about that in the Spruce Bio tweet.
Above is where I started buying it. I doubt most people have the patience to wait for a trade like this to pay out. But, if you do. I will post some recent similar setups in a future Substack.
I have added to my short targets list. But, still haven’t shorted anything yet.
—AJ