Gold glitters as worries mount about government debts and uncertainty

The closure of the US government contributes to concerns about political dysfunction, and the fears that none of the large parties are not worried about the explosion in the US this year, a great beautiful bill of Trump and tax deductions for companies and rich.

The US government debt was 35.5 trillion dollars as of September 30 last year. Now about $ 38 trillion dollars and rises a day. The US debt / GDP ratio is about 125 percent and rises. Trump’s too much revenues from tariffs (effectively tax for US companies and consumers) will make a notch to its debt with only $ 1 trillion interest rate.

There are many risks to protect the Trump and the US and other major economies in the White House, struggling to respond to destabilization of debt levels.

And the US is not alone in experiencing financial and political stress.

In most developed economies, public sector debt levels have been increasing since pandemi and International Monetary FundBy the end of this year, GDP is expected to be over 110 percent. In the first half of this year, the International Institute of Finance says that global debt increased more than $ 338 more than $ 21 trillion.

Governments are struggling to control their balance sheets, causing political turmoil.

Recently, France has lost its fifth prime minister in three years in the mid -year of futile efforts to restrain France’s deficits and debts, and Japan’s financial markets emerged with the election of a conservative, but financially expanding leader. Japan’s debt / GDP ratio is about 260 percent.

The US and other major economies are struggling with unsustainable debt levels and to deal with low growth-as the Trump has done-they will do their best to increase the rates of loose monetary policies, money pressure and interest rate determination rates.

Under such variable and changing conditions, it is not surprising that central banks and investors make gold stocking – especially the US dollar was priced and the US dollar was weakened this year (the US fell more than 10 percent against the currencies of large trade partners), the price increase was not fully searched when we look at the out -of -fountain luxury.

The weakness in the US Dollar, the rate of Fed’s rate, the US worsening public finance and the loss of confidence in the United States, global finance, trade and geopolitics, global finance, dominant but predictable and globalization player in trade and geopolitics, and to avoid motivation to avoid and diversity.

Lower US interest rates also mean opportunities costs for lower holding and gold, which does not generate income.

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When Gold went into such a run, it was in 1979 that high inflation and low global growth – Stagflation – and Fiat currencies caused the concerns about the stability of the currencies more than twice the price.

The Iranian Revolution, which disrupts the global oil supply and the Soviet occupation of Afghanistan, contributed to the sense of instability and threat as the war in Ukraine and the conflict in the Middle East have done in the last three years.

It is a vulnerable element to the US-Folks, especially after trying to reduce their exposure to the exposure of the US by China, after trying to reduce the exposure of the US by China, after the US’s G7 economies have tried to reduce their exposure to Russia after the occupation of Russia’s foreign exchange reserves and occupied Ukraine.

The increase in the price of the increase in a record Sharemaret and Bitcoin value of a 30 percent overlap is no surprise.

Gold has a very high correlation with both. Both gold and Bitcoin are considered as measures against inflation, but Bitcoin’s role as a risk asset may mean that investors may mean the need to get some kind of fence against it as the risk appetite increases.

For centuries, it was the final fence against gold risk. And there is a lot of risk to protect with other major economies struggling to respond to the destabilization of Trump and the US and debt levels in the White House.

Market Summary Bulletin is a winding of the trade of the day. Take each onetoKday afternoon.