Otavio (Tavi) Costa just pointed out something that should have every investor paying attention—U.S. gold reserves now account for just 2% of total outstanding government debt, one of the lowest levels in history. That’s a far cry from where things stood at the onset of World War II, when gold covered 40% of government debt.
At some point, something has to change. Costa argues that the U.S. must eventually intervene, expanding its gold reserves to restore a degree of fiscal and monetary discipline. With mounting debt and a dollar that looks increasingly vulnerable, gold accumulation may be the only way to reestablish confidence.
The patterns are already forming. When the dollar weakens structurally, hard assets like gold and silver tend to crush U.S. equities. History shows that combining austerity with lower rates almost always leads to a weaker dollar—and right now, both are in play.
The Fed knows the stakes. Cutting rates would reduce government spending by lowering interest payments on debt, but it also accelerates the dollar’s decline. Eventually, the system will demand something more than printed money—it will need real backing.
Costa is sounding the alarm. Gold is already moving. Don’t miss this bull market.
Sources:
https://x.com/TaviCosta/status/1895956484162273350