Neither voters nor investors should expect much to change in terms of the trajectory of spending, debt, and inflation. This week the gold market consolidated near the $2,000 level.
It’s too easy for the mainstream to forget that gold had been strong prior to the Mid East conflict. Interest rates are surging and gold is giving them the proverbial middle finger.
Big increases in US Treasury auctions keep funding the deficit. I keep writing about the Big Bond Bust because the US bond market is the heart of the entire global economy.
Gold rallying back to $2000 so quickly is a positive sign for an eventual breakout. The miners, juniors, and silver need gold to surpass $2100 before they can outperform.
An ounce of gold, roughly the amount found in a 1932 $20-face-value Double Eagle gold coin, is now almost $2,000. That reflects a 99% devaluation of the dollar.
A hard landing is the base-case scenario. Why trust the Fed when it has failed to see every major recession coming, even when it's the one creating each recession?
