Today’s Letter is Brought To You by MoonPay x Phantom!

Crypto is easy when your wallet just works. That’s why millions trust Phantom, powered by MoonPay.Phantom gives users one home for crypto across Solana and top chains. With MoonPay built in, anyone can buy in seconds using Apple Pay, PayPal, Venmo or cards — no bridges, no friction, no waiting.Together, Phantom and MoonPay make onboarding to crypto as simple as tapping “Buy”. Phantom keeps your assets safe while MoonPay opens the door to everything crypto has to offer.Keep your crypto in one place with MoonPay + Phantom. Controlled by you, secured by us.

To investors,

Financial markets have learned to listen when the President of the United States talks about asset prices or the economy. When he said to buy stocks earlier this year, it was a great time to buy stocks. When he said tariffs wouldn’t lead to empty shelves or the Great Depression, you should have gone long stocks immediately.

This makes sense because the leader of the free world, regardless of his political party, had immense power and influence over financial markets. Simply, he can make things happen.

But every once in awhile Trump says something about the economy that sounds downright outrageous. The latest example was a few days ago when he said GDP growth should be 20-25% year-over-year. The exact quote was: “instead of a 4% GDP or 3% GDP, it should be able to be 20 or 25%. I don’t know why it can’t be.”

At first, this comment sounds ridiculous because the US has averaged 3.2% annual GDP growth since 1947. So the President is telling us he thinks that his economic policies can get us to a growth number that is 700% higher. Again, sounds ridiculous, right?

Maybe not. There is a possible path to significant GDP growth. It may be unlikely, but it is possible.

First, Michael Arouet highlights the real driver on how we could get to 20-25% GDP numbers. Michael writes “Hear me out, was the entire period since the Great Financial Crisis just an unsustainable artificial debt binge?”

If that is true, the US economy could easily grow faster if we were willing to take on substantially more debt. That may sound like a crazy idea, but that is exactly what we have been doing for the last 25 years.

The United States’ debt-to-GDP has exploded from about 55% in the year 2000 to nearly 125% in 2024. We are addicted to debt. There is no other way to describe the situation.

But the Trump administration has somehow figured out a way to stimulate GDP growth upwards of 3.5%, while reducing the federal budget deficit by around $600 billion.

Kevin Hassett went on television last week and said “It’s looking like the deficit for this year will be $600 billion lower than it was last year. That really helps lower inflation. We’ve got the trade deficit cut in half from last year. All of these things are things that should continue to move us towards the Fed target of 2%.”

Now this doesn’t mean they are going to balance the budget. In fact, I went from being excited about a balanced budget earlier this year to very cynical about any President in our lifetime being able to balance a budget in light of the structural challenges. But reducing the deficit by $600 billion is still a great development.

So this brings us back to growing GDP at a substantially higher rate. The way you do this is ease monetary policy, encourage technology innovation like AI, and deregulate as much as possible. There will be trade-offs to these decisions, but this is the blueprint for growing GDP much faster.

Take AI as one example. The explosion of innovation and investment from Silicon Valley has essentially saved the US economy. More than 60% of GDP growth is estimated to be from AI-related investments. Couple that with the interest rate cuts, the return of QE, and a Trump-friendly Fed Chairman for 2026…that should spell faster growth across the US economy.

We were promised an economic boom. It looks like we are going to get exactly that. Will it be 20-25% annual GDP growth? Doubtful. But I’ll take 5-7% growth any day of the week.

Hope everyone has a great start to their Monday. I’ll talk to you tomorrow.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

How Fed Rate Cuts Affect Bitcoin, AI & The Market

Jordi Visser is a macro investor with over 30 years of Wall Street experience and the writer behind the VisserLabs Substack. In this conversation, we break down the latest Fed decision, rate cuts, and their impact on bitcoin and public equities.

Then we go deep into the AI landscape — where value is emerging, where risks remain, and how investors should be thinking about positioning for 2026.

Enjoy!

Podcast Sponsors

* Figure - Need liquidity without selling your crypto? Figure’s Crypto-Backed Loans allow you to borrow against your BTC, ETH, or SOL with 12-month terms and lowest rates in the industry at 8.91%. Access instant cash or buy more Bitcoin without triggering a tax event. https://figuremarkets.co/pomp

* Abra - This podcast is sponsored by Abra. Abra is the secure way to access crypto and crypto based yield and loan products through a separately managed account. www.abra.com.

* Bitizenship – Get Italian Residency with €250k investment in Bitcoin Startup Italy , maintaining Bitcoin exposure. Book a free strategy call at bitizenship.com/pomp.

* BitcoinIRA - Buy, sell, and swap 75+ cryptocurrencies in your retirement account. Pay less taxes. Earn up to $1,000 in rewards.

* Arch Public - Arch Public’s cutting-edge algorithm tools ignite profits, harnessing razor-sharp data analytics to nail perfect entries, exits, and risk management. Turn volatility into opportunity and do it hands free with Arch Public. (Oh, and yes, try us out for FREE too!)

* Defi Development Corp - DeFi Development Corp. (Nasdaq: DFDV) is building the first Solana-focused public treasury, giving investors exponential exposure to Solana’s growth.

* Uphold - Uphold is the all-in-one platform to trade, earn, stake, and swap across 300+ assets with real-time proof-of-reserves and any-to-any conversions. Manage your entire crypto portfolio in one place at www.uphold.com

* Bitwise Asset Management - Crypto specialist asset manager with more than $10 billion client assets and more than 30 crypto solutions across ETFs, index funds, alpha strategies, staking, and more. Learn more at bitwiseinvestments.com

* Xapo Bank: Fully licensed private bank and virtual assets services provider that integrates traditional finance and Bitcoin. Earn up to 3.5% in BTC over USD Savings. Spend globally with a debit card that gives up to 1% cashback in BTC. The Pomp Audience Exclusive: Receive $150 discount when they join with this link.

* Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit https://www.simplemining.io/

* Bitlayer - Bitlayer is powering Bitcoin beyond just a store of value, making Bitcoin DeFi a reality while staying true to its core principles of security and decentralization. Learn more about Bitlayer at https://x.com/BitlayerLabs

🚨READER NOTE: If you want to sponsor The Pomp Letter, you can fill out this form and someone from our team will get in touch with you.

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.

This is a public episode. If you'd like to discuss this with ...