There is one enormous economic factor affecting the future of gold that nobody in th Political Sphere is talking about.
Nobody.
But it affects the future of gold in particular and all US economic activity in general more that anytbing else happening in the realm of Global Economics. And the policies of neither a Democrat or Republican administration are taking this massive Global Economic Factor into account.
All of our economic woes stemming from massive deficit spending and perpetual negative real rates have been masked for the last 50 years by that fact the we have had the world's reserve currency. So no matter how much debt we incur the rest of the world needed to buy our debt in order to have dollars as a settlement currency for oil, copper, lithium, and every other commodity.
This is ENDING. Because of the lunacy for Tarrifs and Sanctions every country has decided to ditch the dollar as a reserve currency. Nobody is buying our debt. Because nobody wants to hold dollars that can be confiscated.
That is why the long dated treasuries are rising even as the Fed is cutting.
But it is a gradual process.
UNLESS we double down on tarrifs and santions.
Then the rest of the world will double down on ditching the dollar.
It is not a simple unwinding because the Eurodollar market is vast.
However, it is the most destructive process to our economy we have encountered since WWII.
And it means that inflation will reignite while the yeilds back up and up and up.
Unless somebody in our government gets their head around this. The US dollar is screwed.
And gold will go to the stratosphere.
Unfortunately nobody running seems to have any idea what I'm talking about here. Plenty of people in the fincial community do. It's hard to understand why the disconnect is so great.
But gold knows.
