GOLD AND Math

 

There are always two aspects to any market: Narrative and Math.  

In the short term narrative dominates.  Narrative makes use of  sexy stories, repeated catch phrases, and all out salesmanship.  (as well as bogus correlations.)

Math dominates the long run.  Math is math.

The math of the Gold Market is simple:

The US governement will take in 5 trillion dollars of tax income this year.

1 trillion of that comes off the top for interest expense.  2.5 trillion comes out to pay Social Security and Medical obligations.  The defense department will eat up the remaining 1.5 trillion.

That leaves 0 dollars for all the rest of our vast government: Infrastruture, law enforcement, border enforcement, ICE, FEMA, Food assitance, housing assistance, Education, FDA, FCC, SEC, the Justice Department.

NO MONEY AT ALL for all those things and everything else.

So how do we pay fo all that?

We print the money.  That dilutes the value of all existing dollars.

So everything whose value is denominated in dollars becomes commensurately more expensive.

That's GOLD.

That's math