The speed at which the global economy is declining is such that there’s little room for the central planners to fiddle around and try to distract the masses from what’s at hand. In steps the United Nations, who’s urging central banks to stop raising rates to fight inflation. Their suggestion? Price control.
No one wakes up in the morning and says, ‘What a nice day for a nuclear war. Let’s launch some missiles’. That’s not how a nuclear war will happen if it ever does. Instead, experts who have studied the subject of nuclear war fighting since the 1950s (and I’ve personally studied their work since the late 1960s) all agree that the danger is not an out-of-the-blue decision to launch. The danger is escalation.
Now the Fed is no longer pumping in liquidity…the tide is receding…and the yachts are sinking. Bloomberg tells us that US$57 trillion has been lost — in stock and bond values — so far this year
Although Liz Truss’s budget copped most of the flak for the massive intervention in bond markets, it was actually coming anyway. A number of big pension funds (like our superannuation companies) in the UK were caught on the wrong side of bond trades and were about to face a margin call.
No gold investor could’ve wished for better. Lockdowns, epic fiscal and monetary stimulus, outright monetary financing by central banks, inflation, recession, stagflation, central banks so far behind the curve they’re unlikely ever to catch up, extreme negative real interest rates, a crash in other safe-haven assets like bonds, and the prospect of nuclear war. What could possibly be better for the gold price?
Over the last 12 months, the interest on federal debt rose above US$700 billion per year. As the Fed raises interest rates, the number will soon go over the cost of Social Security and Pentagon spending — combined. Meanwhile, inflation reached 40-year highs.
Fat Tail Daily is brought to you by the team at Fat Tail Investment Research
Copyright © 2026 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988
