Elon Musk’s Coming Gold Shock

Addison Wiggin / February 5, 2025

The maverick financial fraternity that predicted the Internet boom, the Great Recession, and the incredible rise of Bitcoin has a bold, new prediction…

Elon Musk’s Coming Gold Shock
The maverick financial fraternity that predicted the Internet boom, the Great Recession, and the incredible rise of Bitcoin has a bold, new prediction…
Trump’s strategy — if you could call it that — was a streetwise inversion of the Pax Americana formula. Instead of lending to secure influence, he threatened to cut off trade to reassert dominance. Think of it as the Empire of Debt’s margin call. The world is no longer organized around American generosity or credibility. We’re entering Pax Technica Multipolaris — a fractured landscape where blocs compete over chips, cables, AI engines, and the rocks beneath Greenland’s ice. The U.S. wants to re-industrialize. China is engineering an AI autocracy. Russia, as always, bets on energy and entropy.

We’ve seen four massive bubbles in financial assets in the last 25 years: the dot-com bubble (1999), the real estate bubble (2006), the COVID bubble (2020), and the artificial intelligence (“AI”) bubble (2024). Each of them has led to a crash within 24 months. You’ve seen this happen again and again. Why? Because our monetary system is broken. It will continue to lurch between bubbles and busts, and the volatility will get worse. You can think of the dollar-based global financial system as a child’s toy – a top that’s spinning and losing speed. As it fails, it’s going to wobble and eventually topple.

The Mar-a-Lago Accord as it’s envisioned today would cause a global financial crisis. That’s because it fails to understand the importance of short-term Treasury debt as collateral for inter-bank lending and derivatives. Substituting 100-year Treasury debt for short-term Treasury bills would make those bills scarce. Treasury bills are the most liquid collateral in the world and are at the root of the Eurodollar system and the $1 quadrillion derivatives market. Scarcity of Treasury bills would implode bank balance sheets and lead to the greatest banking crisis in history.

BREAKING NEWS

The Rugged Tariff Trail To A Golden Age
The Rugged Tariff Trail To A Golden Age

Addison Wiggin / March 24, 2025

The headline isn’t “Tariffs are rising.”

The real story is from where.

We’re coming off 80-year lows, historically speaking. Tariffs haven’t been this low since Eisenhower was mowing his own lawn, and nobody knew what “globalization” meant.

The consequences?

Oh, they’re coming.

You’ll see the market separate like oil and water: winners and losers. And, like always, the winners will have lobbyists. The losers will get no airtime. Forget what social media may say to the contrary.

It Turns Out Our Gold Analysis Is Conservative…
It Turns Out Our Gold Analysis Is Conservative…

Addison Wiggin / March 21, 2025

Last year, well before the idea of auditing Fort Knox was ever floated, we followed some macroeconomic trends and released research suggesting that gold prices could be in for a massive move higher, potentially over $20,000 per ounce.

The number seemed ridiculous at first glance. We had to do the calculations and recheck our premises several times.

Even at All-Time Highs, Gold Is Still a Buy
Even at All-Time Highs, Gold Is Still a Buy

Addison Wiggin / March 20, 2025

The price of anything is just a number, a snapshot of collective mood swings wrapped in market jargon. Traders will tell you that price distills a world of information into one clean figure. If that’s true, then gold’s relentless climb tells us something sobering: despite the stock market flirting with record highs, caution is creeping back into the room.

Pricing is supposed to be a rational affair — supply, demand, and a few other economic theories you vaguely remember from that class you slept through in college.

Why does a Toyota Corolla cost less than an Aston Martin? Same raw materials, different perception.

Gold, however, plays by its own rules.

One ounce today is the same as one ounce 2,000 years ago. No upgrades, no Bluetooth, no marketing gimmicks. Just the same shiny metal that has survived the economic follies of every civilization that thought it was too clever for its own good.

Oil Insiders Seizing The Day

Andrew Packer / March 19, 2025

Right now, there are some fearful headlines for the oil industry. There’s rising talk of a recession. Reduced global trade from tariffs. And President Trump’s call to “drill, baby, drill,” encourages more production.

More supply, all else being equal, means lower prices. Good for consumers, but that’s usually not good for energy producers. Or is it?

Oil could be ground zero for the phenomenon of what we call “winners and losers.”


“Flooding The Zone” and More Strategery

John Robb / March 18, 2025

Networked warfare didn’t begin in Trump’s America; it emerged earlier, far from Washington, in the chaos of the Iraq War. During the early 2000s, traditional military analyses failed against an insurgency that defied conventional explanation. Over seventy distinct Iraqi insurgent groups—driven by diverse motives such as religious zeal, tribal loyalty, or economic despair—operated together with astonishing adaptability. Though fragmented, they became a networked insurgency unified around a single goal: expelling American forces.


Real Money Tells the Tale

Bill Bonner / March 17, 2025

If the price of gold stays around $3,000, it would mean the Dow would have to fall to 15,000…another two-thirds drop. Or if gold were to go to $5,000, we’d be looking at Dow 25,000 to reach our trigger point.

Whatever. We’ll wait. And when (and if) we get a Dow priced at 5 ounces…we’ll sell gold and buy every quality stock we can find.

Do we get rich this way? It depends. More importantly, we don’t expect to get poor.

The Trump Master Playbook
The Trump Master Playbook

Addison Wiggin / March 14, 2025

Enter the Trump Master Playbook — a scenario where interest rates fall enough to dodge a recession (with or without the Fed), and the economy roars back from slowing growth fueled by massive government cuts.

Late 2025 kicks off like a scripted comeback, and the 2026 midterms keep the MAGA coalition in power.

Under this playbook, markets wobble early, spooked by tariffs and policy shifts, but the bond market forces Powell’s hand, slashing rates. By year’s end, cheap money fuels a new bull run. By 2026, the economy hits full stride — booming housing, surging small caps, and a stock market on a sugar high.

The Forced March of White Collar DOGE Refugees
The Forced March of White Collar DOGE Refugees

Addison Wiggin / March 13, 2025

Forget steel and aluminum tariffs — the next market crash will be because some guy on Twitter claims Canada is threatening to cut off maple syrup exports… or electricity, one of the two.

Musk, DOGE and tariff skirmishes have markets reacting like a cat on bath salts.

So, with all the fury and bluster, what’s an individual investor supposed to do?

Sunburns and Swashbuckling: Exploring the Bahamas As Markets Sort Out the Latest Chaos
Sunburns and Swashbuckling: Exploring the Bahamas As Markets Sort Out the Latest Chaos

Addison Wiggin / March 12, 2025

We’re here in Nassau this morning, watching the major U.S. stock indices tick lower, even after we’ve seen considerable signs of declining inflation over the past 24 hours.

The headline CPI data cooled, and a site called Truflation, which looks at 80,000 prices in real-time, suggests that inflation in the U.S. is actually at 1.35%, far under the Fed’s 2% target rate.

The Dow, S&P 500 and Nasdaq all opened higher, but have been bleeding out their gains. Funds and institutions continue to deleverage at the fastest pace since the 2020 Covid crash.

The Market’s Worst-Case Scenario: A Lost Decade
The Market’s Worst-Case Scenario: A Lost Decade

Andrew Packer / March 11, 2025

If the AI revolution plays out like the internet, we could see AI technology continue to develop, but for high-flying AI startups to collapse like dotcom stocks.

That’s not to say investors should get out now. By some measures looking at AI development versus the internet, 2025 may be another big year for tech stocks, much like stock returns in 1998 and 1999.

If anything, today’s high market valuation reflects a high level of overconfidence in stocks, as seen by how quickly sentiment has changed in recent weeks as companies like Tesla Motors have slipped 50% from their recent highs.

From the creators of The Daily Reckoning, I.O.U.S.A, Empire of Debt and The Daily Missive

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