Right after the debates the yeild on the 10 year notes soared over 200 basis points. Evidently the message to the bond market was that neither candidate is at all concerned with bringing down inflation. Though gold is temporarily consolidating the movement in the long bond should be read as extremely beneficial long term for gold.
Then today July 1st, the Supreme Court handed down a decision that is should be the coffin nail for the dollar as reserve currency when they transferred all the power from the judiciary - which is in charge of settling international conract law, to the President = who can now settle all international currency policy by fiat.
The ten year note reacted by jumping another 100 basis points!
Why:
This means that the President alone has final word on who to sanction, who should pay tarrifs and in what amount, and who should suffer confiscations. He need not consult any other branch of Government as he is no longer bound by laws or conventions.
This is a tremendous development for Gold as it takes away the final support for the the dollar as an international settlement currency - or the world's reserve currency.
The dollar has already become unattractively loaded down with debt, with both candidates pledging to increase debt exponentially,
But now the US Judicial system has now been sufficiently gutted so that the President is first, last and final arbiter of how the dollar will be used as a weapon going forwards.
Both candidates have already demonstrated their love of weaponizing the dollar. Now they have unlimited power to do so.
This makes the dollar that much more unattractive to Global Central Banks.
Over the next few years this is the most excellent news Gold could have ever hoped for.
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