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Jonathan Wellum Makes the Case for Gold as a Debasement Hedge

NowPress play to follow along0:00 / 9:36
Chapters6 segments · tap to seek
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Breakdown

0:00lesson

Macro framework under stress

  • Inflation at 3.4%
  • Oil near $100
  • 10-year touching 5%
  • 30-year above 5.3%
  • Equities holding despite stress
1:45lesson

Interest rates and market valuation

  • PE contractions expected with rate hikes
  • Market continues to truck along
  • Demand for debt on all sides
  • Inflation and war in Iran driving energy prices
  • Repression of rates for 20 years
3:21lesson

5% interest rate threshold

  • 5% is a big number with large debt
  • Personal, corporate, and sovereign debt challenges
  • 40 trillion US debt at 4% = 1.6 trillion interest
  • 26% of budget going to interest unsustainable
  • Need for productivity to combat inflation
5:05lesson

Besson's bond-buying attempt and gold

  • Besson tried to cap long end of the curve
  • Market reacted with yields cracking
  • Bessent's challenge to market unsustainable
  • Gold as a hedge against debasement
  • Inflation not easy to crack
6:38lesson

Treasury Secretary's challenge and market response

  • Bessent's numbers don't work
  • Market will challenge him
  • Treasury Secretary's signals
  • Need for austerity and population readiness
  • Market as a test of sustainability
8:04lesson

Gold as a hedge for financial reset

  • Gold at $4,400 an ounce
  • Precious metals as largest exposure
  • Gold as collateral in a distrustful system
  • Dutch and other countries pulling gold back
  • Reset inevitable due to unsustainable numbers

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