Largest-Ever

It’s difficult to articulate to those who have never seen a structural change in the role of the reserve currency (the last one was in 1945) what the fundamental changes it brings with it.

Trump’s 2^nd term is the beginning of the normalization of the reserve currency status for the United States.

The dollar will continue to serve as the go-to, most trusted currency, but it has been decided by the Trump’s economic team that China and others, like Russia, Qatar and the European Union members, are using the elasticity of the demand, for their own benefit.

Remember, President Trump wholeheartedly believes that November 5^th was the most important day for the United States, except July 4^th 1776, because had Kamala Harris won the presidency, the country you know today would have been OVER.

Therefore, he is on the path of rebuilding its might and he won’t stand for the abusing the reserve currency; Stephen Miran, as well as Scott Bessent and Howard Lutnick, feel that the dollar is overvalued and that through right action, its natural impulse would be to weaken to normal levels.

We call that “Mean Reversion.”

Courtesy: Zerohedge.com

2025 marks a new era for gold. You can clearly see that with five months into the year, we’re tracking $75bn, annualized, which is far more than at any other time since 2015, when the central banks lifted-off from zero interest rates.

It’s not because they don’t believe in America; to the contrary, foreign investors see an American Golden Age, as much as I do and they’re pouring funds into U.S. equities:

Courtesy: Zerohedge.com

The world is realizing, with each passing day that Trump is creating an entirely new world order, but the shocking part is that it is based on a paradigm that many are caught off-guard by, especially the Europeans.

The European Union and the Aristocracy of Europe has believed in monarchs and war lords throughout its modern period, from the Romans to the Vikings to the latest colonial period.

The Europeans enjoyed moderate industrial success, after the advent of the steam engine and the union of Germany into one country.

When the American academics of the late 19^th century came back from European universities, they brought with them these values and infected America with them.

This changed the United States, starting in 1913 and up until today.

Courtesy: Zerohedge.com

You can see this growing apart in the bond markets. Foreigners are not financing American debt, which is the reason Trump had to go to Saudi Arabia, UAE and Qatar and bring liquidity back.

Right now, the 30-year rate is at 16.5-yr high, not seen since BEFORE the era of ZIRP and QE!

Courtesy: Zerohedge.com

What I believe is going to happen next is that interest rates in America will become far less volatile than in the past.

The reason is that the Federal Reserve will have MUCH LESS impact.

The Trump administration is fixing the deficit and that will be appreciated by lenders and, additionally, no one wants to be the reserve currency… it’s too much of an ask, so that is creating demand for gold, because there’s NOWHERE ELSE to go.