A reader recently asked me which presidential candidate would be more bullish for gold. That one’s easy. Kamala Harris.
A President Harris administration would preserve and strengthen the status quo. To start with, we’d see a continued bonanza of bad regulation, spending and taxes. Add in poor capital allocation and misaligned incentives, and we have a recipe for stagflation and reckless monetary policy.
But an often-ignored catalyst for gold is U.S. foreign policy.
Under President Biden and VP Harris, world stability has deteriorated. Nations are lining up in two distinct blocs, not dissimilar to the buildup before World War II. Military tension hasn’t been this high in many decades.
Biden and Harris have also greatly accelerated the weaponization of the dollar. Sanctions and financial warfare have become the de facto levers applied to protect U.S.
national interests (real and perceived). The ongoing shift away from dollar assets is directly tied to the Biden administration’s seizure of Russian assets following Putin’s invasion of Ukraine in 2022. Every leader around the world is left pondering how safe their own assets are from the long arm of Uncle Sam.
If Russian central bank funds can be frozen, and even stolen, theirs can be too. Russia is taking full advantage of the situation. They’re leading the BRICS’ efforts to de-dollarize international trade, and progress is being made.
We’ve backed the country into a corner and given them no other choice. And san.
