Let's talk about Trump, debasement, Gold, Copper, and grandma....

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Belle of the Ranch 4 min 1 speaker 6 chapters transcribed 1 month ago

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What is Grandma’s economic indicator and why does it matter?

Belle of the Ranch 0:01

Well, howdy there, internet pupil it's Bell again. So today we're going to talk about Trump debasement, gold, copper, and grandma. So We've talked about grandma's economic indicator before. And we got a question about it. And we'll go over what it means for Trump's economic policies. Quote. So grandma's economic indicator said gold up, copper down is a bad sign. What does gold weigh up without massive changes to copper mean?

Why is gold soaring to all‑time highs since Trump’s election?

Belle of the Ranch 0:37

Okay. So just a quick clarification. Grandma in this case is actually grandma, not shorthand for a general old person's economic indicator. The idea is that when gold goes up, rich people are getting their money into safe assets. When copper goes down, there's less construction and production. So that's a bad sign for the economy. Grandma was right. It's a pretty solid indicator. Right now, gold is reaching all-time highs.

What does the rise in gold and silver say about investor confidence in the dollar?

Belle of the Ranch 1:10

It broke $4,000 per troy ounce. If you're not familiar with prices, that's ridiculously high. To put it in context, from september fourteenth, twenty twelve until november eighth, twenty twenty four. The price increased about fifty two percent. Since Trump was elected, gold is about forty five percent up. That's a huge swing in less than a year. It's gone up twenty percent in just the last thirty days. Gold goes up during times of economic uncertainty. Can we rule out some special gold need for industrial use?

Why isn’t copper falling despite the economic slowdown?

Belle of the Ranch 1:48

Yes. Silver has also gone up about fifty percent since Trump took office. Investors don't trust the dollar. So, why isn't copper going down? You know what needs a lot of copper? Data centers. Just like with the GDP and stock market, data centers are potentially masking this effect as well. The money pouring into gold, silver, and even bitcoin is being called the debasement trade. Debasing the dollar.

How does the “debasement trade” explain the shift to gold, silver, and bitcoin?

Belle of the Ranch 2:21

There's an erosion of belief in fiat currency because of inflation, government spending, and more debt. The one big beautiful bill could cook the books and pretend to not be drastically increasing the debt under congressional rules. And well let's just call it creative accounting. But that doesn't sway investors who can look at things beyond congressional book cookery. Trump's one big beautiful bill and other economic policies are so bad, they have shaken investors' faith in the dollar. That's not a good development for a president who wants to increase investment in the US. If people don't have faith in the dollar, they're not as likely to put money into US investments, which are by default based in the dollar.

Belle of the Ranch 3:14

JP Morgan's boss suggested the US markets could be headed for correction and described the US as a partner that has become quote. Less reliable.

How are Trump’s economic policies shaking faith in the U.S. dollar and stability?

Belle of the Ranch 3:27

A key underpinning of the US economy is its stability and reliability, something that has been basically unquestioned since the end of World War two. Trump's economic policies are not just causing issues. They're hitting at foundational pillars of US economic stability. The economy people in this country have known their entire lives isn't one they're entitled to just because. It's based on it being safe and stable and We're likely to see significant changes over the coming years, and they aren't good ones. Anyway, it's just a thought. Y'all have a good day.

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