GOLD - STILL WAITING... But.....

 

The world may be deglobaizing - in other words operating with less cooperation and more animosity and friction - but it is more interconnected every day,

Troop movements on the Ukraine Russia border, Rockets launched over the Israeli - Syrian border, cause massive volatility in oil and gold markets.

An interest rate hike in Japan causes an unwinding of the yen carry trade and global markets fall thousands of points in minutes.

Retail sales comes in a touch stronger than anticipated in the US and global stocks soar.

The Chinese housing market has a bad print and copper and lumber prices tank,

And a day or two of relative calm can cause global markets to spike upward in manic relief untethered from any objective reality.

There are is only once constant in all this:

Debt is now the fuel for all financial liquidity.  And Liquidity drives all the global markets.

That's a tremendously complex thought if you want to break it down and really understand the myriad components of debt: debt creatd by the global central banks, Debt created by the global Treasury departments, Debt created by the Shadow Banking system of Private Equity, Private Lending, Hedge Funds and DeFi shadow banks.  Bundles of debt tranches sold into all the pension funds.  Debt derivatives sold over the counter.

This debt is measured in the quadrillions of dollars.  Or not really measured at all anymore.

And no politician is even talking about it.  Because nobody wants to hear about it.

It's boring.

Try talking to somebody about the debt problem and watch their eyes glaze over.

Trump talks about Trade Wars and taking control of the fed so he can control rates.  That's a sure fire recipe for creating massive new amounts of debt.

Harris talks about stopping corporate price gouging.  That will bring prices down at the fringes.  But it does nothing to adress the debt problem.

Name any politician world wide who even dares mention debt?

The problem is so big it's become invisible.  It's like a malignant blood cancer that can't be seen, and sometimes appears to be in remission,  but it is lethal all the same.

But everyone who understands this problem is buying gold.  China, Russia, Saudi Arabia, India, The Global Billionaire class.  

Only some of that is reflected in the offical gold price.

But when the debt does become visible trhough a bank collapse, or sovereign bond sale that goes awry, or a currency trade that has to be unwound by millions of traders all at once, or a spike in inflation or a war that has to be funded with massive printing etc etc etc

Then the gold price leaps up by a hundred dollars in a day.  

And suddenly everyone wants in on the trade.

We're obviously not quite  there. 

But the greater the debt....

Nearer we get to the end game.