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Gold!
Gold! Every time I mention it, someone loses their mind. Hold onto your sanity. Gold!
Modern humans
I guess that move in the dollar yesterday didn’t help but it’s interesting that gold had such a bad week while rates were falling and the world stayed on trend for getting weirder and less functional. Seemed like gold traded with the risk off energy in stocks which surprised me, though I guess you could argue it was overbought. Who knows. I’m curious to see how it behaves on the dip.
With Trump & Co suddenly fixated on gold and Fort Knox, anything’s possible and not ruling out some sort of front-running/positioning in advance of his upcoming inspection. I mentioned this in a previous post and (hopefully) it’s worth repeating here, but the most plausible speculation I’ve read about Trump’s interest in Fort Knox has to do with engineering a one-time budget surplus by marking the US gold reserves to market. This is again from Kelton, host-permitting, and I swear I’m neither an employee nor an acolyte, just piqued.
https://stephaniekelton.substack.com/p/the-real-reason-trump-and-musk-are
Thanks for the link, which includes a link to Ken Garbade’s paper. I’ve been wondering if Bessent & Navarro would try to engineer a similar stunt by issuing gold-backed securities of some sort. I doubt they’d try to sell the gold outright since that would enrage a good-sized section of the base, but ya never know with them!
My Grandfather died in a gold mine collapse. Three days before he died, another miner was killed in the same mine. At the time the miner’s lives, almost all were Dust Bowl refugees from Oklahoma, were valued at next to nothing. Of course, it’s still that way in many parts of the world, but it wasn’t so long ago that it was that way in the US too. The mindset that values money, or gold, over lives or principles of any kind is ascendant again.