Kamala is Going to Drive Gold to $10,000

Gold recently hit $2,500 marking an all time record high.

The reality is, there’s a very good case to be made that gold is still quite cheap compared to its trajectory. It’s possible that in a few years, $2,500 gold could look remarkably inexpensive.

Not to be overly dramatic, but Kamala Harris is a big reason why.

I’m not a D or R kind of guy, but it’s impossible to ignore the impact of the upcoming election on the future of the US.

At a press conference a few weeks ago, reporters asked Jerome Powell, the Chairman of the Federal Reserve, about the upcoming Presidential election and whether or not the Fed was modeling any potential policy changes depending on the outcome.

But the Fed Chairman was almost proud of the fact that the election outcome didn’t factor into their planning at all.

The Fed considers itself apolitical. Powell seemed to think it was somehow wholesome and responsible to completely ignore perhaps the single most important factor that could drive the economy in the coming years—the outcome of the Presidential election.

Two people with diametrically opposed views will clearly make a massive difference on the economy.

I saw a report yesterday that, since she stole the nomination exactly one month ago, Kamala has raised $500 million. That brings her total campaign war chest to a massive $1 billion.

It’s funny because I seem to remember Rep. AOC saying that, “No one ever makes a billion dollars. You take a billion dollars.” In this case, I’m inclined to agree with AOC.

Kamala took a half billion from Biden— the legitimate nominee— and raised another half billion by making the most outrageous claims and lying her ass off, without even bothering to sit for basic interviews or take legitimate questions.

She’s been coronated without scrutiny, and only now are we starting to see how she views the economy.

She seems to understand that a lot of people are suffering, and she at least partially diagnoses it accurately as the result of inflation. But she has no understanding of where the inflation comes from.

There’s no discussion of the government’s role in running multi-trillion dollar deficits, the unprecedented fiscal and monetary stimulus, and continuing to rack up trillions of dollars in debt every year, even though there’s no longer a national emergency.and weight of the federal government into attacking the private business sector.

Her plans will undoubtedly cause higher deficits and more inflation. For example, subsidizing housing is obviously only going to make everything cost more.

Giving new home buyers a free $25,000 just means houses will become $25,000 more expensive.

It’s exactly what happened during the pandemic when they started handing out stimmy checks— there was no increase in goods and services, just more money floating around, so prices went up.

The same thing will happen with housing and everything else the government pours “free money” into. But they have no understanding of this.

Now she’s talking about using the government and the legal system to go after priv

None of that factors into her thinking. To her, inflation is always and everywhere the result of corporate greed.

And her solutions to inflation involve essentially criminalizing “greed” and throwing the full force

ate businesses. She’s attacking grocery store chains, accusing them of being greedy when their profit margins are a measly 2-3%. Apparently, that’s greedy.

The Biden Administration has gone out of its way to destroy competition, even though competition is one of the most important factors in keeping prices low.

They attack oil companies and prevent the expansion of US energy production. Of course that makes energy prices higher, which in turn makes the price of everything else higher.

This is why it’s ultimately very difficult to see the dollar surviving as the global reserve currency through a single term of a Kamala administration. Her policies will create higher deficits, balloon the national debt, and drive up inflation.

The nature of a good reserve currency is stability. Foreign governments and institutions require stability in the reserve currency. Countries around the world are desperate for something they can actually rely on—something that won’t be inflated away or subject to a gargantuan national debt.

Another key element of a reserve currency is strength. Someone who backs pro-Hamas protesters is anything but strong.

This is why gold is reaching all-time highs.

Yes, some of it is investor speculation. But the biggest driver of gold prices is central bank demand, and they’ve been buying literal tonnes of gold.

To me, this is a clear and obvious sign that they are preparing for an end of the dollar as the dominant global reserve currency.

Gold is a likely and very reasonable reserve asset for them to hold in lieu of dollars, because it has a 5,000-year history of maintaining its value. Central bankers know that they can trade gold for other currencies or strategic assets, and it is this sentiment that is driving their gold purchases.

In short, central banks around the world are trading dollars for gold.

If Kamala wins, that trend will almost certainly continue, resulting in the eventually end of the dollar as global reserve currency.

And I’d expect the price of gold to go a lot higher from there.

Source

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