Gold has been shinning this year, rising by ~10% to a $2,300 per ounce, even more than the S&P 500
This has been driven by the US debt rising at the fastest pace in history and the Fed pivot in December, which now expects three rate cuts in 2024
Is gold heading to $2,500 soon? pic.twitter.com/D28sOQn9Az
— Global Markets Investor (@GlobalMktObserv) April 2, 2024
Amidst the cacophony of economic woes, a glaring truth emerges: the U.S. deficit balloons at an alarming rate, sending shockwaves through the financial markets. As the Treasury grapples with mounting debt, the precarious dance of issuing short-dated T-Bills to “buy back” long-dated Treasuries exacerbates the deficit, fueling liquidity crises and sparking fears of a financial meltdown.
The Treasury General Account (TGA), soon to be flush with tax receipts, offers a temporary reprieve, allowing policymakers to kick the can down the road. Yet, the specter of looming fiscal calamity looms large, as Treasury Secretary Yellen implores Federal Reserve Chair Jerome Powell to stave off disaster with imminent rate cuts.
Amidst this backdrop of economic turmoil, gold emerges as a beacon of stability, soaring to $2,300 per ounce—a testament to investors’ growing unease with the crumbling financial infrastructure. The unprecedented rise in U.S. debt, coupled with the Fed’s pivot towards rate cuts, fuels speculation of further gains, with experts predicting a surge to $2,500 in the near future.
Yet, as yields spike and the thirst for USD cash intensifies, the fragile balance of the financial ecosystem hangs in the balance. With the 30-year Treasury Yield reaching its highest level since December, the precarious equilibrium between risk and reward teeters on the brink, heralding a stormy future for global markets.
Big spike now, yield higher than yesterday… 👀
Looks like the thirst for $USD cash is growing… https://t.co/PZ2v7jgnAx pic.twitter.com/JdizN4uO09
— JustDario 🏊♂️ (@DarioCpx) April 3, 2024
30-year Treasury Yield jumped to 4.51%, its highest level since December 1 pic.twitter.com/mawS1un5X7
— Barchart (@Barchart) April 3, 2024
TGA soon going to be flush with tax receipts, helping them kick the can down the road. But I imagine Yellen is telling Jerome Burns they've run out of tricks and he better cut rates next month – or else. pic.twitter.com/VZZaUKNIkr
— Kashyap Sriram (@kashyap286) April 3, 2024
Textbook Prices Have Increased by 1401% Over Last 50 Years
The cost of college textbooks has increased at nearly 3 times the rate of inflation during the last 5 decades. pic.twitter.com/nfBXqbbxxR
— Wall Street Silver (@WallStreetSilv) April 3, 2024