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According to Jack Hoogland, pressure is mounting on central banks to lower interest rates and turn the printing press back on. He expects this to drive gold, silver, copper and uranium prices sharply higher and explains why he believes that rally could begin at any moment.
The US economy is still growing, but that is entirely due to the AI hype. The chart below clearly shows the impact of high bond yields and high energy costs on other sectors. That impact is quite dramatic.
As soon as the AI hype fades or the bubble bursts, the US economy will quickly sink into a deep recession.
In the tweet below, the WSJ rightly points out that the current budget deficit of 6% while the economy is (still) growing is historically unprecedented. If economic growth comes to a halt, or the economy enters a recession, that budget deficit will rapidly climb towards 12% of GDP. Then the US will find itself in the midst of a full-blown crisis.
And the funny thing is that the financial media are now slowly beginning to realise that politicians are not going to cut government spending. As a result, as Reuters reports here, pressure on central banks to push interest rates back down will rapidly increase. And we are already seeing the first signs that this mounting pressure will have an effect.
In the tweet below, we see ECB policymakers publicly stressing that they see no reason to take emergency measures.
At the same time, behind closed doors this month, Lagarde promised European finance ministers that the ECB stands ready to intervene as soon as necessary. The conclusion is clear.
The ECB and the Federal Reserve will soon lower interest rates and print money on a massive scale to push down yields on longer-dated government bonds as well.
Once the market realises this, hard assets such as gold, silver, copper and uranium will skyrocket at an unprecedented pace. Look at the reports above, and you know that this rally could begin at any moment now.
