Jeff Christian: Fear, Fiscal Strain, and 'Bad Reasons' for Higher Rates Keep Gold’s Bull Market Alive - Financial Sense
Jeff Christian: Fear, Fiscal Strain, and 'Bad Reasons' for Higher Rates Keep Gold’s Bull Market Alive - Financial Sense
Source: Financial Sense
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DW NOTE
Christian calls them "bad reasons" because the fiscal math is too obvious to be interesting anymore. The US ran an $1.8 trillion deficit through July — 4% worse than last year — while the Fed just raised rates into a 5.44% producer price inflation print. That makes the debt service cost higher and the deficit structural. Gold isn't rallying on speculation; it's rallying because the policy mix guarantees debasement and someone has to pay for it.