Trump’s Political Pivot And A Weaker Dollar Drive Gold Higher

We hang the petty thieves and appoint the great ones to office 
– Aesop, 620 BC – 560 BC

Question:  How can you tell when a politician is lying?  Answer:  His/her lips are moving.  In the last few weeks Trump has become another puppet of the Deep State and his new policies suspiciously resemble the campaign platform on which Hillary Clinton ran for president – a least on the big geopolitical and economic issues.  To be sure, at least for now there appears to be some differences between a Trump White House and a hypothetical HRC White House on domestic and social issues.

Those of you who voted for Trump as a vote not to elect Hillary have ended up with “Hillary.”  Those of you voted for Hillary, and thought you lost, have ended up in many respects with a surrogate for Hillary.   It took less than 12 weeks since the inauguration for Trump to adopt the stance of a true Washington politician.   This is where the “elected” official pivots away from the public interest and toward the interests of the Deep State:  Big oil, big defense, big healthcare and, of course, Too Big To Fail Wall Street.  Congratulations Donald.  You’ve passed the Beltway Test.  Welcome to “The Club.”

Of course, you are “blind” if you didn’t think this would happen once Trump took office and let Hillary, her gang of criminals and the Clinton Slush Fund Foundation off the hook after threatening her with prison during the election debates.

Anti-gold apologists will attribute the remarkable move higher in the price of gold this week to the heightened geopolitical tensions between Russia and the U.S. over Syria plus the North Korea situation.   While this might have had some influence on the price move in gold, the primary drivers are economic, financial and structural.

By “structural” we mean the quiet implementation of a digital gold accumulation system between Shanghai, Dubai and Europe.  In China, this system will let the public buy a “digital” form of gold in tiny increments and go into participating banks and take possession of that gold.  Rory Hall has presented two important interviews on this topic on The Daily Coin that merit attention on this topic:    Gold, China, Trump and Economic Collapse, with Ken Shortgen, and China Moves 30% More Funds Into Physical Gold, with Jeff Brown.

While geopolitical and economic factors are pushing the price of gold higher, the extreme dislocation between the western Central Bank short position in gold via several different forms of paper gold and the amount of available physical gold to deliver into buyers’ hands is going to move gold in a way that will shock and awe everyone except maybe the hardiest gold “bugs.”  The two interviews posted above will help explain why.

Finally, as we presented here after Trump was elected, a newly implemented weak dollar policy will springboard the price of gold higher, which is what we witnessed yesterday after Trump affirmed that his administration favors taking the dollar lower in an inevitably failed attempt to revive the competitiveness of U.S. exports.   The Shadow of Truth explores these issues in more detail in today’s episode:

7 thoughts on “Trump’s Political Pivot And A Weaker Dollar Drive Gold Higher

  1. There was every reason to believe Trump would be vastly preferable on foreign policy and immigration. Everything else was a wash. Jury’s still out on immigration, but Hillary would assuredly have swamped the country with another six million welfare dependents.

    The recent foreign policy stuff feels like a stab in the back, but it may be a controlled stunt or temporary tack. We’ll know in another month. Hillary was assuredly going to be a total nightmare.

  2. Trump honoring his promises of keeping the US of foreign conflicts was a total fucking lie. The Deep State/Military Industrial Complex somehow has blackmailed him or he lied from the start. What a douche.

  3. If you want the job to be done , do it yourself.
    Trump had only to choices – grab the money and be puppet or be killed.
    We can’t seat and wait for one person to fix entire system.
    if we want change in future we will have to fight or we going to be slaves working for 5$ a day.

  4. Background on possible next Fed Vice Chair:

    Cohn has Randal Quarles as a candidate. He’s a PEU promoting himself as a “longtime Carlyle Group partner”:

    Trump’s Potential PEU Fed Vice Chair
    Reuter’s reported:

    The vacant Federal Reserve vice chairman’s seat is a key regulatory role Director of the National Economic Council Gary Cohn and his colleagues on the economic team want to fill soon. Cohn has interviewed nearly two dozen candidates and has whittled the list down. Randal Quarles, a veteran of the George W. Bush administration is one of several candidates left, a source familiar with the process said.

    In June 2003 Quarles spoke on Iraqi Reconstruction. Ten years later an analysis of that effort showed:

    Iraq Reconstruction Cost U.S. $60 Billion: Left Behind Corruption And Waste

    Despite a $60 billion U.S effort to rebuild Iraq, life for most Iraqis has not improved significantly, according to a bitter and regretful retrospective by Iraqi officials and U.S. diplomats, military officers and politicians.

    Randall Quarles left President George W. Bush’s U.S. Treasury for The Carlyle Group where he served on their financial services team. Carlyle made a fortune on BankUnited, which it obtained from the FDIC with billions in subsidies. That sound strikingly familiar to IndyMac and Steven Mnuchin, Trump’s current Treasury chief.

    The potential Vice Chair of the Federal Reserve served under President George H. W. Bush.

    During the Administration of President George H.W. Bush, Mr. Quarles also served at the Treasury; first as Special Assistant to the Secretary for Banking Legislation from 1991 to 1992 and as Deputy Assistant Secretary for Financial Institutions Policy from 1992 to 1993. In those roles, Mr. Quarles was a principal member of the Treasury’s effort to design comprehensive reform of the laws governing bank capital markets activities.

    Randall Quarles rotated from government to Carlyle, a politically connected private equity underwriter (PEU). Bank capital markets imploded after Quarles left his Domestic Finance position with the W. Bush administration. Carlyle’s press release on Quarles hiring stated:

    “Before joining Carlyle, Mr. Quarles was Under Secretary of the U.S. Treasury, where he led the Department’s activities in financial sector and capital markets policy, including coordination of the President’s Working Group on Financial Markets, development of administration policy on hedge funds and derivatives, regulatory reform of Fannie Mae and Freddie Mac, and proposing fundamental reform of the U.S. financial regulatory structure.”

    That’s the junk that blew up in 2008. Candidate Donald Trump wouldn’t touch a guy like Quarles. Will President Trump appoint another PEU to retain a system that rewards those with the most?

    Buyout shops have seized on a performance enhancer that artificially jacks up results, according to many industry executives.The practice isn’t illegal, and is largely cosmetic, but it allows private equity firms to goose what’s known as their internal rate of return, or IRR.

    Greed requires those with oversight to look the other way. Quarles played a role in several government performance debacles. I expect none of this to come up if he is nominated for Fed Vice Chair.
    Posted by PEU Report/State of the Division at 10:56 PM

    Closed loop. Nothing will change until it busts.

  5. On a positive note. I purchased one of Dave’s stock recommendations from the Mining Stock Journal and its up 88% over the last 30 days. Crazily, I think that stock is still early in the accumulation phase. I wouldn’t buy junior miners without the mining stock journal. The juniors are just too dangerous to purchase without research, experience, and insight. I think big things are on the horizon for PMs and the right juniors are one way to leverage the move.

    1. I second that, petedivine, and I know which stock you’re referring to because I’m in it as well (and happier than a pig in you-know-what). Dave definitely has a nose for sniffing out some good ones (step aside, Mr Snuffleupagus) and leaves no stone unturned when doing his research.

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