 Good day, fellow investors. Welcome to the stock market news with a long-term fundamental twist. And we can forget about the trade wars and what we have to think about is what's going on on a basic macro level, politics, etc. And there are two conclusions. Higher taxes and higher inflation over the next years, decades. And that's something that I got from reading. As you know, if you have followed this channel, we are friends with the niche master's fund where Perienster, Dr. Perienster and Peter Barklin manage mostly their own money from a value investing value growth perspective. And they do that. And they also look at the macroeconomics. They have a newsletter that I'm subscribed to. And in this video I want to summarize the newsletter that touches really on those topics, taxes and inflation. Not so hot topics in the news, but extremely important for your investing and everything else. So let's discuss how what's going on in the environment will probably spur higher taxes in the future and higher inflation. So I'll quote a little bit Peter Barklin from his letter. He perfectly defines what MP3 is and he says that modern monetary theory briefly says that Western states can and should continue to print money as they have since 2008. However, instead of using the cash to buy government bonds and other securities, thus increasing government debt levels and driving up asset prices, they should spend them newly printed cash directly on things that enhance the public good, items such as combating climate change, reduction of inequality, etc. Further, instead of monetary easing, which since 2008 has caused inflation in the price of many types of financial assets, government should use dynamic taxation as in spending to regularly adjust fiscal policy to prevailing economic conditions, thus either cooling or stimulating the economy at large. Peter goes straight to the point, MMT is obviously an incredibly stupid idea. It has been tried many times before and in many places. Venezuela, Zimbabwe, Argentina, Cuba and the Weimar Republic springs to mind. So if MMT is such a stupid idea, why it is so important? And here Peter goes to Ray Dalio's letter saying very insightfully how Ray Dalio is not for or against monetary policy free. He just says that it seems like it is inevitable that after monetary policy one, interest rates, monetary policy two, printing money, buying assets, financial assets, politicians and other policymakers will be tempted to simply print money and give it directly to consumers of the government. Because that seems the easiest way out. So they are not pro or con, it just seems that okay this will be done in the coming years or decade. And that's something we as investors have to really really dig into why it's going to happen and how we can adjust when it comes to investing. Peter also shows a few beautiful charts that I wish to share. So net worth of US households and non-profit organizations jumped more than double from the lows 10 years ago. So this is not because the economy got richer, because productivity is higher. This is just because of financial engineering and because the dollar lost half of its value. So forget about measured inflation. This is because currencies have lost their value, even if inflation doesn't show that. However, this chart shows how nothing much has changed, but the wealth, the perceived wealth has almost doubled. Another beautiful chart confirms the fact that the world isn't getting richer. It's just that there is more money. The number of millionaires in the world has doubled in the last 10 years. And you can see how of course Asia Pacific growing a little bit faster, but North America and Europe stagnating Europe has a much larger number of millionaires than it had 10 years ago. So a lot of financial engineering, a lot of money in the system. And the consequence is that economics aren't really improving. Poor people don't see their lives improving really really good, which means that there might be more monetary easing coming in the future and higher taxes on the other hand. If we go back to inflation, this is the dissection of how inflation has been measured over the last 20 years. And we can see that some things are much more expensive than the overall inflation over the last 20 years, which is at 56%. Hospital services, textbooks, college tuition, childcare, or all more expensive, more than double the inflation rate. Housing is on the inflation rate, food and beverage too, but cars are cheaper, household furnishings, clothing, cell phones, computers, toys, and TVs. Now tell me what's more important in a lifetime for you, housing, healthcare, education, or TV, cell phones, and computers? It's clear that okay inflation, especially the top inflation line is with financial assets, then it goes to other things that are in high demand. And then it's offset by things that lose and lose value where there is a market, there is a natural normal market. And given what's going on, given the distribution of wealth, what Delio has also been saying, there is high likelihood that when the next crisis comes, and that always comes, they will A, print more money, B, tax the richer the rich that got rich thanks to the monetary policy to money printing. So when it comes to that, we can expect inflation, more inflation and higher taxes because taxes are really at bottom slows today. So I will conclude this news video here with these insights that we have to prepare for higher taxes and higher inflation. Taxes are mostly a personal issue. You might move to a country with lower taxes or do something about it. See with your tax advisor and I'll prepare a video for Sunday where we discuss the concepts of investing with inflation for our retirement investment series. So thank you for watching. Just a note in the news for those subscribed to my stock market idea platform. I have published the new idea for this month. The link is in the description below. Thank you for watching and I'll see you in the next video.