GOLD AND THE ECONOMY: CUI BONO?

 

Where is the economy headed under this new administration?  What does it mean for gold?

To answer these questions there is a principle of Logic attributed to Cassius and often used by Cicero - that was taught to me in 10th grade logic (do they teach logic any more?) and that principle is to ask CUI BONO?  

Who Benefits?

This question is the first principle for uncovering the logic behind any situation.

Take the cease fire between Israel and Hamas.  CUI BONO?  Who benefits?  Well, at first, everyone benefits.  Israel gets back hostages, and gets temporary respite from criticism in the international press.  Hamas gets a pause in the bombing so they can try to regroupe and reassamble their command structure.

Beyond this neither Netanyahu nor the Hamas command structure benefits from a pause in hostilities because they are both commited to wiping out their opponents.  So of course the cease fire can not hold.

If you want to move beyond CUI BONO you can make all sorts of arguments to the contrary, but why bother?  CUI BONO gives the answer you need to anticipate the ultimate result.

Now take the US economy.  The main issues are Debt, Inflation, Cost of living, and the Asset Markets.

Of course the economy is tremendously complex.  You can - and must - analyze global liquidity and the flow of funds.  And the Global Debt Structure and the Global Energy use and distribution.  And many other things.

 But first: CUI BONO?

Who benefits?

To understand who benefits you must look at who is in charge

Right now the Billionaire class owns the US government.  Period.  End of story.  The President, Co-President, Commerce Secretary and Secretary of the Treasuy are all Billionaires.   The Billionaire class also owns the Russian govenment, and the Chinese government (Though perhaps to a lesser degree in China.)

The Billionaire class is benefited by the exact same thing all over the world: Increased liquidity to float the Asset Markets ever higher.

Increased liquidity means printing money.  And amassing more debt.

This drives up inflation.  But inflation doesn't matter to the Billionaire class.  They love it.

But won't the masses get angry as the costs of everything rises?

Yes, but the Billionaire class also owns the media.  They own Tik Tok and X and all the internet media and most of what you see on television.  So they can control the messaging and blame the inflation that they must and will engender on everything and anything but themselvbes.  Wokeness.  DEI.  Transgender swimming teams.  Immigrants. Jews.  Who cares?  As long as they don't get blamed they can get away with it forever.

They've gotten away with it - and everything else - for years.  They've been the shadow banking system through Private Equity and Private Lending - that controls everything for the past decade, driving up prices and buying up all the assets, and nobody blames them (except Gretchen Morgensen) for anything.

So you can argue this or that til you get blue in the face.  But if you ask CUI BONO?  You get the best and only answer you need.

Inflation will soar.  And gold will soar with it.