Trump’s policies are expected to be inflationary due to tariffs, which raise earnings by replacing income tax but ultimately increase American product prices to compete with imports.
A Trump victory led to a strong dollar, which is bullish for the dollar but bearish for gold and other assets, potentially causing deflation through cheaper imports.
The S&P 500 rose 2% and the Vix volatility index fell 23% the day after Trump’s victory, indicating a risk-on environment and potential stock market boom.
The Fed is anticipated to cut interest rates by 25 basis points, but a surprise 50-basis-point cut could boost stocks and gold.
The 10-year yield is a key driver of gold prices, as rising yields make bonds more attractive and reduce gold demand, potentially leading to a stock market crash if yields continue higher.
The US stock market, described as the “biggest bubble in US history”, has been on a 15-year bull run fueled by “free money” and near-zero interest rates, setting the stage for a potential significant crash.
Technical indicators suggest the S&P and NASDAQ 100 are approaching “full momentum break” levels, where a 10% drop could trigger a 20% decline, potentially coinciding with the 2024 election.
A stock market crash could lead to sudden negative turns in unemployment data and other economic indicators, resulting in a “hard landing” rather than the anticipated soft one.
The Federal Reserve’s likely response of cutting rates during a market crash, as seen in 2000 and 2007, may be ineffective and could lead to a “monetary crisis”.
Gold has shown persistent growth with a 30% year-to-date gain, outperforming the S&P’s 18% gain, and could see further increases if the stock market peaks.
Grains (corn, wheat, beans) have been significantly beaten down but are now “basing together” and could potentially lead a commodity upswing on a percentage basis if investors seek safer assets during a market downturn.
BRICS nations are offering a new financial system that allows countries to trade freely without US control, potentially bypassing the dollar and challenging Western economic dominance.
The proposed BRICS currency composition of 40% gold and 60% other commodities signals a move towards a more tangible asset-backed system, diverging from fiat currencies.
Kuwait’s mandate for over 1 million citizens to provide biometric data exemplifies an extreme push for digital ID, potentially increasing taxation by 35% if physical money is eliminated.
Nigeria’s failed digital currency experiment in 2016 lasted only 108 days, with 0.1% of the population rebelling, demonstrating the challenges of implementing CBDCs.
The European Stability Mechanism (ESM) acts as a permanent bailout fund benefiting banking cartels, with the power to set unlimited bailout amounts while enjoying full legal immunity.
ESM’s structure institutionalizes corruption and favoritism of the oligarchy, contributing to poverty rates above 15% in some European countries.
BRICS is signaling to the global majority that defaulting on Western debt and renationalizing resources won’t be penalized, offering nations more sovereignty in economic decisions.
The ESM’s 18th-century approach to fiscal policy reverses democratic achievements, removing budgeting and taxation decisions from public scrutiny and parliamentary oversight.
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