Socialized Dishonestly
If we’re right, and there’s another big drawdown coming in risk assets, we could soon be presented with the most awesome buying opportunity of a generation… or even the century.
Chiswick, West London
Wednesday, July 16
By Tom Dyson, Investment Director
Today’s big rumor is that Trump is firing Jerome Powell, head of the Federal Reserve. I don’t know if there’s any truth to this rumor. I’m not even sure it’s possible for Trump to fire Powell. The markets seem to think it is. There were big sudden price changes in gold and money markets at 11am ET this morning when the headlines first appeared.
What drama! It’s like a story from a third world dictatorship.
We’ve long described the US government as bankrupt. Is there a clearer signpost than Trump interfering with the central bank because it won’t cut interest rates again?
Since the Fed began cutting interest rates on September 18, 2024, gold is up 30%, silver is up 25%, platinum is up 40%, copper is up 33% and Bitcoin has gone from $60,000 to $120,000.
We’ve also long described gold’s rise — along with gains in these other hard assets — as a run on the dollar. For the system to function, savers must believe that the US government will protect the dollar’s purchasing power. When that faith erodes, things can quickly get disorderly… and uncontrollable. That’s why firing Powell is such a risky move...