Written by Bryan Lutz, Editor at Dollarcollapse.com:
Good to talk with you this morning.
These Sunday’s seem uneasy, but so you know, there is some certainty in this world.
These thoughts come every Sunday.
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. Will America need to get as angry as Argentina before the federal government cuts spending?
When speaker Mike Johnson won his position in Congress, he made the dramatic promise to cut government spending.
So far, that hasn’t happened.
Instead, he and the majority of Republicans opted to change the budget approval process.
They thought they could attack spending by breaking down the budget.
One approval for this…
One disapproval for that…
And then they’re on their way, delivering on their promise.
But after the majority of Republicans understood the consequence to get the bill passed – a government shut down – they tossed the idea. Then Speaker Mike Johnson scuttled right over to the Democrats, and approved whatever spending they wanted.
No Republican wanted to look bad for causing a government shutdown.
So government spending continues into record deficits.
Meanwhile, down in post-hyperinflation Argentina, newly elected President Javier Milei has already led his country out of a recession by taking a “chainsaw” to the bureaucracy.
Argentina’s economy is growing at 3.9%, and the country’s stock market went up 174% in 2024…
Monthly inflation has dropped from 25% down to 3%…
What did it take for Argentina to change?
They got angry.
The average Argentine was fed up. So they voted Milei in.
Now they’re starting to the reap the reward.
In my opinion, Americans will need to get angry before they too get to reap the reward.
2. Everyone has their own opinions about Zuckerberg’s censorship turnaround, his appearance on the Joe Rogan podcast, and allowing for tampons in the men’s bathrooms at the Facebook office. I don’t really find it fruitful to hold anything against Zuck except for holding him accountable. Here’s why.
I’m glad for the censorship and fact checking changes at Facebook…
Because I want to move forward.
I’m a future-oriented kind of person, and from what I’ve found the thing that makes institutions last (especially marriages), is forgiveness.
Forgiveness that isn’t free of accountability, of course.
I think there’s a difference between someone asking for forgiveness without acknowledging or admitting what they did wrong, and someone making changes and coming clean.
One panders, the other doesn’t.
Zuck clearly pointed toward government intimidation in his Facebook speech, but then he also clearly admitted he and his team censored. They did something wrong.
Am I defending him for censorship during COVID?
I don’t know there are lots of fingers to point…
What I am saying is that I am for change, and forgiveness has to be a part of that…
So long as he keeps himself accountable.
3. Gold is headed back up over $2700 in its usual seasonal run, but will it keep going up this time? Keep looking for this trade.
Gold went up back over $2700 on Friday.
Like I said in previous weeks, this is a seasonal thing.
Except this time is different.
I know that term gets thrown around a lot, but this time truly is different.
National debt is too high.
Interest payments on that debt are also too high.
But here’s the real trade to start looking for…
It signals… out. of. control.
When institutional investors, and others start trading dollars for gold.
It’s called the destruction trade.
When currencies get destroyed by inflation, the smart move their money into gold.
Physical gold, royalty companies, and mining stocks…
It protects their wealth from currency destruction, crisis, and the coming debt tidal wave.
Dave Skarica, Editor of DollarHedge Insider started planning for this years ago. About this time last year, he created the DollarHedge Insider portfolio.
Because he knew eventually the Fed would cut rates, debt would start running wild, and gold would take off.
It started in September…
Now we’re on the second leg of gold’s potentially skyrocketing upshot.
Get all the information inside DHI.
