☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
PARTNER MESSAGE

My name is Porter Stansberry.

I’m the founder of one of the largest financial research firms in the world.

Over the last 26 years, we’ve helped investors navigate almost every major economic cycle, and we’ve been on the forefront of every big financial story from the rise of Bitcoin and mRNA vaccines to robotics and artificial intelligence.

But today, I’m breaking what I believe is the biggest story of my career.

And I’m going to start by saying something that might surprise you coming from me.

If you feel like the economy no longer works for people like you — you’re not wrong.

If you’ve watched the stock market hit all-time highs while your industry announces layoffs… if GDP keeps climbing but your purchasing power keeps shrinking… if something feels fundamentally broken and nobody in Washington seems to care…

Trust that instinct. Because it’s not broken by accident. It was broken on purpose.

And the force behind it — the force that is quietly restructuring who wins and who loses in America — is the same force that reshaped the entire world the last time it appeared.

In 1776.

America’s New 1776 Moment

That is not a metaphor.

As you’ll see today, the last — and only — time a shift this powerful hit the global economy was 250 years ago.

And now, on the eve of America’s 250th anniversary, it’s happening again. Faster. And with far more at stake. One famous Stanford economist is even saying that it is:

“The biggest change ever… bigger than electricity… bigger than the steam engine.”

And the people orchestrating this moment — some of the most powerful figures in Washington and Silicon Valley — have made the calculation explicit.

They have decided that the benefits of what’s coming outweigh the costs. Even if the costs are measured in millions of American livelihoods. You are not in their equation.

And the financial decisions you make in the face of this moment — this New 1776 Moment — could dictate whether you’re enriched by what’s coming… or crushed by it.

You can be angry about what’s been done. I am.

But anger without the right information just means you watch from the wrong side of the largest wealth transfer in American history.

The full story of what’s happening — who’s behind it, why, and the specific moves to make sure you and your loved ones end up on the winning side…

It’s all waiting for you here.

Good investing,
Porter Stansberry
Inspiration Quote for the Day
“Inflation is taxation without legislation.”
— Milton Friedman
The Morning Ritual
Same Paycheck. Same Account. Less of Everything.

My barber Tony told me something Saturday morning. “I haven’t raised my price in two years. But every month I take home less.” Same `$22` haircut. Same twelve chairs. But his rent climbed. His electric bill climbed. The cost of the disinfectant he sprays on every set of clippers went up `18%` this year alone. He is making the same money and keeping less of it. I told him he just described the entire American economy in four sentences.

Here is the part nobody talks about. Your dollar did not disappear. It did not get taxed. It did not get stolen. It just stopped buying what it used to. And the math is worse than most people realize.
In One Sip
► May CPI came in at `4.2%` year over year. That is a three-year high. Core CPI, which strips out food and energy, sits at `2.9%`. The gap between those two numbers is your grocery cart and your gas tank.
► The best high-yield savings accounts pay `4.10%` to `4.20%` APY right now. For the first time since early 2023, headline inflation is running at or above the rate your savings earn. Your cash is treading water. Maybe losing ground.
► The Fed raised its PCE inflation forecast from `2.7%` to `3.6%` at last week’s meeting. Nine of eighteen officials now project at least one rate hike in 2026. The dot plot flipped from cut to hike.
► Consumer sentiment fell to `48.9` in June. That is near the lowest reading in a decade. Americans are not panicking. They are just quietly running out of room.
► The buried story: the dollar index hit a one-year high last week at `100.85`. The dollar is strong against the euro and the yen. It is weak against your grocery bill, your insurance premium, and your electric bill. Two different dollars. Only one of them lives in your wallet.
Why It Matters for Your Money

Put `$50,000` in a high-yield savings account earning `4.1%` APY. After a year you have `$2,050` in interest. That feels like progress. Now run the other number. Inflation at `4.2%` on a household spending `$65,000` a year means your costs rose about `$2,730`. Your savings earned `$2,050`. Your expenses climbed `$2,730`. You lost `$680` in real purchasing power while your bank statement said you gained.

That is the quiet tax. It does not show up on your pay stub. It does not show up on a bill. It shows up in the gap between what you earned and what you can afford. And it compounds.

Beef is up `14.8%` over the past year. Coffee is up about `55%` over the past two years. Home insurance premiums rose roughly `12%` nationally. None of those are in your savings rate. All of them are in your budget.

Now add borrowing costs. Credit card APR averages `21.5%`. If you carry `$6,000` in revolving debt, you are paying roughly `$1,290` a year in interest. That is what Tony meant. Same number on the receipt. Less left over at the end of the month.
The Wealth Angle

I think the Fed just told you exactly where this is headed. They raised their inflation forecast to `3.6%`. They took rate cuts off the table. Half the board now expects a hike. That means two things for your money. First, borrowing stays expensive. Your mortgage, your credit card, your car loan — none of that gets cheaper this year. Second, inflation stays sticky. Your costs keep climbing while your income fights to keep pace.

You are caught between two walls. The cost of money is high. The cost of living is high. And neither one is coming down soon.

Here is what I think most people are missing. The dollar is at a one-year high on the international index. Headlines call it “strong.” But strength against the euro does not help you at the checkout. The dollar that matters is the one in your checking account. That one lost ground this year. And the Fed just told you it will keep losing ground through December.

Monday brings the Nasdaq-100 rebalance. Roughly `$800` billion in index funds will buy specific stocks at the open. That is a one-day event. The purchasing-power problem is every day.
☕ Key Insight:
Your savings account earns `4.1%`. Inflation is running at `4.2%`. For the first time in three years, cash is a losing position. Not crashing. Just slowly falling behind. That is the tax nobody votes on.
Coffee Break Move

If you have cash parked: Check whether your savings rate is above `4.2%`. If it is not, look at short-term Treasury bills or CDs that clear that bar. A 6-month T-bill was yielding around `4.5%` last week. That is the line. Anything below it means you are paying the quiet tax.

If you are stretched: Pull up your bank statement and count the subscriptions, auto-renewals, and recurring charges. Most households carry three to five they forgot about. Cutting `$40` a month is `$480` a year. That is real money when every dollar is shrinking.

Tony did not raise his prices. He tightened his costs. New supplier for towels. Renegotiated his lease. Switched his card processor. He told me he clawed back about `$3,200` a year without cutting a single haircut. I told him that is the whole game right now. You cannot control what a dollar buys. You can control how many of them walk out the door.

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