GOLD
POETS & PHILOSOPHERS
For deeper truths, it’s the poets and philosophers who stand the test of time.
Ralph Waldo Emerson was born in Boston in 1803, and studied at Harvard at the grand old age of 14. A philosopher-poet, he was the first to expose America to classical Asian and Middle Eastern literature, mythology and metaphysics.
Current market speculation around gold reminded me of Emerson’s words:
“The desire of gold is not for gold. It is for the means of freedom and benefit.”
He wasn’t wrong.
BIG LEAGUE & QUICKLY
Tariffs. Inflation. Growth. The gathering storm.
It really is the new normal, isn’t it? What’s really happening though?
Tariffs are turbocharging inflation and turning up the heat on recession risks. It’s not just Trump — tariffs are hardwired into the EU too. It’s like a Mexican standoff or that Spider-Man meme.
Central banks are stuck, damned if they do, damned if they don’t. Raise rates, and risk nuking the economy. Cut them, inflation roars back.
So what are the central banks doing? Hoarding gold — over 1,000 tonnes every year for three years straight.
That’s game planning, not guesswork.
Sovereign debt’s going vertical. On the campaign trail in 2015, Trump promised to “bring it down big league and quickly,” when it stood at ‘only’ $24 trillion.
…Fast forward a decade, the USA just blew past $36 trillion, pumping out $1 trillion in new Treasuries every 100 days — while buyers start ghosting the auctions.
Last month, Moody’s stripped America of its last major top-tier credit rating. Fast forward another decade and Moody’s predicts US federal debt soaring to 134% of GDP by 2035:
“Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs… Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat.”
Faith in fiat is softening. The US Treasury market just glitched in a mini flash crash. The dollar’s teetering, the euro too, the BRICS looking for workarounds.
It’s a crisis of confidence.
GRADUALLY, THEN SUDDENLY
In The Sun Also Rises, Hemingway explained the two ways to ruin:
“Gradually, then suddenly.”
When inflation sizzles, real assets explode.
If fiat stays soft, Treasuries keep tanking, or a black swan paddles into view, gold won’t trickle up — it’ll rocket.
With gold already hitting $3,500 this year, the story’s loud and clear:
1. The dollar’s losing its shine as the world’s safe haven.
2. Inflation’s entered the chat — and not leaving quietly.
3. Government’s monetizing debt like there’s no tomorrow.
4. Central banks are trapped in a zugzwang — cornered with no good moves.
5. Global capital’s looking for an exit.
DÉJÀ VU WITH ZEROS
Remember Emerson:
“The desire of gold is not for gold. It is for the means of freedom and benefit.”
The classic gold launch signals? Flashing on red.
Be prepared, here we go — it’s déjà vu with extra zeros.
POSTSCRIPT: PAN-EUROPA
Tariffs really are hardcoded into the EU operating system.
Coudenhove-Kalergi proposed a European customs union in 1923 in his book, Pan-Europa.
Backed by statesmen like Adenauer, Stresemann and Briand, the idea was to build a ‘United States of Europe’ with tariffs removed for countries on the inside, but levied hard on countries on the outside.
Briand — the former French prime minister — became head of the ‘Pan-Europa’ movement in 1927. In 1929 he denounced “the menace of American economic power”, advocating tariffs on Europe’s main rival.
The more things change, the more they stay the same.
Dixon, CHAIRMAN