As we made clear in multiple articles we list below, the Fed cannot cut rates given the mosaic of issues driving inflation. As this has dawned on investors, both Gold and Bitcoin hit all time highs on the same day – today.
The Means for BLS’ Manipulation of Inflation and GDP 2/6/2024
The Thief in the Night is Back with a Vengeance 2/13/2024
Truckers Complicate the Fed’s Inflation Gauntlet – Rate Cuts Appear Out of the Question 2/21/2024
Inflation Rising Amidst War Drums 2/28/2024
Tragically, these rallies likely reflect the underreporting of actual inflation as well as the expectation for more inflation. Gold more effectively provides a hedge when compared to Bitcoin given a tendency to move inversely to the stock market, where Bitcoin tends to correlate with the stock market so in the long run, gold would likely be the more secure hedge against inflation.
Interestingly, Gold doesn’t tend to do well when interest rates provide a substantial positive real return as this normally reflects a disciplined interest rate policy and strong dollar. Despite current rates having a real return, Gold is strong – again likely reflecting the underestimation of actual inflation. Said differently, if inflation were accurately reported, interest rates would reflect a negative real return.
Irrespective of the particulars, today is a day to celebrate both Gold and Bitcoin, and also to recognize an extraordinary day of suffering for the establishment and major evidence of this Administration's dollar debasement.
Gold record high
— zerohedge (@zerohedge) March 4, 2024
Bitcoin record high (any second)
Breakevens soaring
And the Fed hasn't even started cutting rates yet pic.twitter.com/mK4hb1GQS7
When gold rises in your currency DESPITE positive real rates, the gold market is saying “Your government will have a debt spiral if real rates remain positive.”
— Luke Gromen (@LukeGromen) March 5, 2024
Gold began warning of this in late 2022; numerous other markets have since begun playing by this "new set of rules."… pic.twitter.com/Yd4u9DJ6TK
Breaking: Bitcoin soared to a record, topping $69,000 after a rally that has defied the expectations of analysts and investors https://t.co/jzGTVoqFkT https://t.co/jzGTVoqFkT
— The Wall Street Journal (@WSJ) March 5, 2024
#Gold just traded at a new all-time record high above $2,140. I wonder if anyone on #CNBC will notice. This record won't last long. Gold has a long way to rise and gold mining stocks have an even longer way to rise to catch up. This is just the beginning of a huge bull market.
— Peter Schiff (@PeterSchiff) March 5, 2024
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