Something big is happening in the world of gold. The South Korean Mint has slammed the brakes on all gold sales due to demand that’s off the charts. Meanwhile, gold prices are flirting with a new reality where $2,900 isn’t just a number; it’s the floor. Yes, after climbing higher than a mountain goat, gold is taking a breather, but don’t be fooled – it’s gearing up to charge towards $3,000 and beyond.
But here’s the kicker – with inflation, gold’s as expensive as it’s ever been, even when you adjust for the US dollar’s shrinking power.
Now, let’s talk about the brutal truth of inflation. If your income hasn’t risen by at least 23% since Covid hit, you are now poorer. And that’s using the government’s own data. The real number? Likely closer to 35% or more. That’s right, while the numbers on your paycheck might look the same, your buying power’s taken a nosedive.
Mark Carney, the man who flooded the UK with 700 billion British pounds, then went to Canada in 2020, advising Trudeau to print another $500 billion. This guy’s like a money-making machine, but all that cash has consequences.
Take this: the US shelled out $84 billion in January just to service our public debt, a 21% jump from last year. If this keeps up, we might spend more on debt interest than on our military this year. Inflation’s not just nibbling at our wallets; it’s taking big bites.
The Fed’s probably in panic mode because the CPI just spiked by +0.5% in one month, the biggest since last August. Core CPI was supposed to cool but instead, it heated up to 3.3%. This wasn’t just an unexpected blip; it’s the hottest inflation report since last year. Instead of cooling off, inflation’s now at a 6+ month high.
This isn’t just about numbers; it’s about our economic future. Month-over-month, headline CPI rose by +0.5%, way above what was expected. This is the first such jump since August 2023, showing that the inflation we saw earlier this year was just the beginning.
And the public’s catching on, with 12-month inflation expectations now at 4.3% – the highest since last November. That’s a 1.7 percentage point leap in three months, the steepest since early 2020.
But the government’s spending? It’s like watching a car crash in slow motion. Under the Biden admin, January’s spending exploded by $143 billion, a 29% hike from last year. Federal finances aren’t just bad; they’re getting worse.
Now, whispers of ‘stagflation-lite’ are getting louder – a mix of slow growth and rising inflation. President Trump promises economic freedom, but his plans are stirring up more uncertainty. While a recession isn’t knocking at our door yet, this “stagnation lite” might be the next unwelcome guest.
In this economic storm, gold might be the only thing making sense. But with inflation acting like a runaway train and government printing presses working overtime, we’re not just in for a bumpy ride; we’re heading into economic uncharted waters.
Sources:
https://www.mk.co.kr/en/stock/11238581
https://x.com/Tablesalt13/status/1889487839206821965
https://x.com/KobeissiLetter/status/1889677408250281984
https://x.com/RealEJAntoni/status/1889755630002491401
https://x.com/StealthQE4/status/1889755036818788512
https://x.com/chigrl/status/1889275472351043657
