BIDEN BUDGET SEES US DEBT HITTING $45 TRILLION IN A DECADE
Do you think gold and digital gold trading at new all-time-highs is a coincidence? #store of value Source cartoon: hedgeye
Some interesting quotes by Donald Trump about rates, the dollar, macro and gold thru Ronnie Stoeferle:
- "I am a low interest rate person. If we raise interest rates and if the dollar starts getting too strong, we're going to have some very major problems." - "This is the United States government. First of all, you never have to default because you print the money." - "The Dollar is too strong. Our companies can’t compete with them now because our currency is too strong. And it’s killing us." - "The golden rule of negotiation: He who has the gold makes the rules." - "We used to have a very, very solid country because it was based on a gold standard. We don’t have the gold. Other places have the gold." - "I have been complaining about currency devaluations for a long time. I believe that we will all eventually, and probably sooner than people understand or think, be on a level playing field because that’s the only way its fair."
A "Goldilocks" us job report -> risk assets
Gold and digital gold rally after a soft US Jobs report. February Non-Farm-Payrolls beat estimates with 275k new jobs BUT 2 months revisions look notable with -167k. Unemployment rate rose to 3.9% from 3.7% and hourly earnings weaker than expected w/+0.1% MoM. January’s blow-out release has been relativized. Source: HolgerZ, Bloomberg
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Yesterday, not only has Bitcoin reached an ATH, Gold is also trading at a record high. What is the message here for fiat money?
Source: HolgerZ, Bloomberg
What will happen to gold if/when Fed cuts and real yields plunge to negative territory?
Source chart: The Macro Guy, Macrobond
Gold has been outperforming tlt (iShares US Treasuries 20y+)
Source: J-C Parets
Gold is back
Gold prices just jumped above $2,100/oz for the first time since December 4th, 2023. It's also now just 2% away from a new all time high, even as Fed rate cuts are delayed. The beginning of a new bull trend for precious metals? Source: The Kobeissi Letter
Interesting chart by TheMacroCompass.com
cryptos and gold are impossible to value but they are in some extent comparables in the role they play as an alternative to the fiat money system. Currently, Gold is 20.5% of the Fiat money in the 5 largest economies. After recent rally, the total cryptocurrencies market cap is just 3.4%. If you think teh gap between gold and cryptos should continue to narrow, there might be further upside. NB: this is NOT an investemnt recommendation
