The US is facing a major problem, plus a look at gold.
Debts & Deficits Matter
July 1 (King World News) – Peter Boockvar: With the eternal question of whether rising debts and deficits matter for interest rates and the funding costs a government has to pay, maybe we’re getting a taste that now it does? The US 10 year yield has risen to a 3 week high, maybe following Europe but also after the Presidential debate.
Regardless of who wins in November though, we know the US financial situation is only going to get worse, especially if current federal spending as a % of GDP at 23-24% remains well above the historical trend of about 20%. While taxes will get a lot of focus too with the expiration of the Trump tax rate reductions, federal tax revenue as a % of GDP is currently in line with historical trends at about 17%.
Dow vs Gold
Graddhy out of Sweden: A very important chart for the next macro trend. Institutions watch this ratio, and they need to wake up from their outdated 60/40 thinking.
The Dow-to-Gold ratio now has a lower low after the two mega backtests. This confirms chart breakdown is coming. Means gold is now set to outperform the stock market.
Dow/Gold Ratio Set To Collapse In Favor Of Gold
Commodities Bull Market
Graddhy out of Sweden: The commodities bull market is the greatest opportunity in your lifetime to get out of the rat race, and focus on what you really want to do. This proxy chart for the two sectors will start to scream higher soon. Fortunes will be made. Get ready in every way you can.
West Is Manipulating Gold Like Crazy
To listen to Stephen Leeb discuss everything from war to the gold and silver markets by CLICKING HERE OR ON THE IMAGE BELOW.
Just Released!
To listen to James Turk discuss why the coming global collapse will be far worse than 2008 and much more CLICK HERE OR ON THE IMAGE BELOW.
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