Expect More Fiscal Support From the Federal Reserve

DRIGGS, IDAHO – Yesterday, Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional fiscal support…

More below.

Rocky Mountains Bolthole

Greetings from our new bolthole in the Rocky Mountains…

We are a modern American nomad family. For the last two-and-a-half years, we’ve lived out of a suitcase and drifted from hotel to hotel, Airbnb to Airbnb, campsite to campsite… never staying in the same place for more than a few days.

It’s been a blast traveling quickly like this. We’ve seen the world… given our kids a fantastic, yet unconventional education… and bonded as a family in a way I hadn’t realized was possible.

The one thing we’ve been missing, however, is a little community. Sure, we have made friends. And we’ve loved seeing so many different places. But we’ve always known that – at some point – we’d have to settle down and find “community.”

Our kids want buddies. Kate wants to meet other homeschoolers. We want to join a church congregation.

So four days ago, we retired the suitcase and the tent, and we came to rest in a small community called the Teton Valley. It’s in eastern Idaho, near the Wyoming state line.

We’re going to stay here for the next six months, and we’re going to experience a little “community life” for a change.

Hunkering Down

We stayed in our bolthole all day today…

We played a board game (Clue) and a game of cards (Hearts). We had a family dinner together (burritos).

And we all did “homework.” I worked on updating the gold strategy report I published to my Tom’s Portfolio subscribers earlier this year. And the kids worked on their schoolwork.

Kate and the kids also went to the community playground for a bit, but I didn’t leave the house at all, except to take the trash out.

That makes four days in a row that we’ve hunkered down in our new Airbnb…

Before we start exploring our new town, we need to recharge our batteries.

We haven’t had a “home” since May 2018. Plus, my family is exhausted from living outside in a tent, washing in public bathrooms, and driving 100 miles every day for the last four-and-a-half months.

So we’ve been lounging around in our pajamas, hanging out together… watching Netflix movies, catching up on our homework, using our laptops and phones, eating together, and playing board games.

It’s been great – and much needed – and we still need a little more of it. (We’re going to take one more day off, tomorrow, then we’re going to start our exploring.)

Now, back to Jerome Powell and “more fiscal support”…

Final Stage of the Great Financial Experiment

The central bank is out of bullets.

What I mean by this is, interest rates are already at 0% and the Fed has promised it won’t raise rates for several years to come.

There’s nothing more for it to do or say that can help the economy…

We’ve now moved into the next “stage” or “act” of the great financial experiment. And that is, the government will now take over the job of stimulating the economy.

I call this the “fiscal dominance” stage of the experiment and it’s the final stage.

(The government stimulates the economy by spending or giving away currency that it doesn’t have but which it can get in whatever quantities it wants from the central bank, which has a printing press.)

Jerome Powell is warning the government, the Treasury, and the President that if it doesn’t borrow and spend enough, the economy will crash again.

He’s saying, “Get this bubble growing again. We’ll print it and you need to spend it.”

Helicopter Money = A Tailwind for Gold

The central bank’s eagerness to print money and monetize the government’s helicopter money is very good long-term for gold.

You should treat your gold investments like they’ve got an invisible floor underneath them. In other words, buy the dips and then sit tight and watch your fortune grow.

For some time to come still, the Fed’s strategy will probably benefit the stock market, too. But there’ll come a point when stocks will be confronted with the dark side of all this government spending and currency debasement, and investors won’t like it.

But that’s another story and, anyway, we’re not there yet…

– Tom Dyson

P.S. Continuing our “small town life” theme… I spotted this photograph in the local Facebook group page today. “Does anyone know who these horses belong to?” the user asks. “I spotted them wandering around my neighborhood just now.”

P.P.S. On the road, we had scant access to Wi-Fi and cell phone signal, which limited our ability to produce videos. But here in our hideout, we have a great internet connection. We’ve decided to start doing our Dyson Family Rambles videos again. Here’s one we did this morning (if you know anyone in need of a pop-up camper, make sure you watch until the end)…

Like what you’re reading? Send your thoughts to [email protected].

A reader suggests a place for Tom to buy discounted snow gear… while other readers give Tom winter car care and Netflix recommendations… and one wants to meet up with the Dyson family…

Reader comment: We recently returned to Houston after spending three years in Jackson, Wyoming. My guess is, after living in the Tetons, you’ll stay for several years or return every summer. It’s a truly special place. Since y’all are skiing Targhee this season, be sure to hit the Jackson Hole Ski Club annual year swap/sale. You’ll gear up the entire family for 10-20% of buying new and it’s a good time for the family as well. Believe they’re planning to go outside starting October 17. You’ll be skiing powder heaven, so enjoy!

Reader comment: You may want to get chains for your tires. I’ve never been to that part of the country in the winter, but I would think they could be a necessity. More than likely, the main roads are kept open with plows but venturing further out, one may encounter icy and even impassable roads. Snow tires are expensive and unwarranted if only used for one season. Enjoy the snowfalls and happy skiing!

Reader comment: I have enjoyed reading your Postcards and appreciate your adventures with the family. By the way, winter tires are a very good recommendation for wintering in Idaho or Colorado and have much better traction than regular highway tires, particularly considering you are planning on hitting the ski slopes this winter. I learned to ski at a small ski area very near to where you are – between Swan Valley and Driggs –that only had a rope tow when I initially started there.

Reader comment: It has been fun following you all around. What a trip! During the long, cold winter (since you all like Western-themed books), your family may enjoy watching a series on Netflix called Heartland. It’s about horses and ranching, and I believe it is probably nearby (over the border in Canada, maybe Alberta). Thank you for sharing your lives! Enjoy your skiing, warm place to stay, and continuing to explore.

Reader comment: Well, I have to tell you that I am so jealous that you will be spending the winter close to a ski slope in Idaho!! I absolutely loved downhill skiing, and even though I am not able to do it anymore, I just know that you and your family will love it! I am a fairly new reader, but I want you to know that I think what you are doing by taking your family on the road is fabulous. I homeschooled for 11 years, and our youngest of four has now graduated and I am retired. No one can teach your children better than you can, and sitting at a desk, they will never learn the life lessons they have learned on the road with you and your wife. Blessings!

Reader comment: I have been reading your Postcards for some time now. I grew up near you, in Idaho Falls, Idaho, and am very familiar with the area you are going to in Driggs. I still have the family home in Idaho Falls and we are back and forth between Colorado and Idaho. We would enjoy catching up with you all when we are in Idaho Falls.

Tom’s response: Yes, please let us know. We’d be delighted to meet you.

And thanks to everyone who wrote in. As always, please keep your comments and questions coming at [email protected].