cannot control the yields on the long long end of the bond market. They're no longer controllable. And the fact that we're not tied to a gold standard which is a severe provides a severe limitation on inflation if you like you know the the way prices behave. Um that doesn't happen either. So, you know, this is this is an inherently different situation from the past where we've had higher rates of um debt to GDP and got away with it, but not under a pure fiat currency. That's the point I'm trying to


make. And I think that is why [music] we're coming to the end of a fiat currency era with everything that in today's news recap. Gold remains rangebound as renewed trade optimism and cautious signals from the Federal Reserve limit further gains. For nearly a week, gold has struggled to regain momentum after dropping about 10% from its record high of $4,381 set in October. The yellow metal remains under pressure after two straight weeks of declines, weighed down by uncertainty over future US rate cuts and easing


trade tensions that have dulled its safe haven appeal. This weakness comes even after the Federal Reserve's 25 basis point rate cut last week. Fed Chair Jerome Powell noted that additional cuts are not a foregone conclusion, a statement that tempered investor optimism and strengthened the dollar, further pressuring gold. That same cautious stance echoed by several Fed officials has led traders to scale back bets on another rate cut in December, leaving gold drifting without a clear direction. The recent movement in gold


and silver has turned into a classic Selva news event. As we pointed out earlier on this channel, once the mainstream media began highlighting the rally, prices flattened out, creating a favorable opportunity for long-term stackers to accumulate more. For that reason, be cautious when large financial institutions suddenly promote gold and silver. Remember, they're often preparing to take the opposite side of the trade. Adding to the headwinds, geopolitical tensions have eased following last week's meeting in


Busousan, where US President Donald Trump and Chinese President Xihinping pledged to reduce trade barriers. While no formal deal was reached, the framework for tariff reductions and increased Chinese imports of US goods helped calm markets, further limiting near-term demand for gold. That's it for today's recap. I think part of the answer to that is that um if you look at the level of debt uh in the United States, I mean the US government's debt um is what is about 115% of GDP. The ability to pay that


comes out of uh the private sector. The taxes if you like that the financial and non-financial sector provide to the government. That's the important thing. Now, if the uh economy goes into recession, then that impairs the ability to cover those uh you know, to cover the interest cost um and indeed to service the debt. And that basically is what we're seeing. I mean, um I put out a piece this morning, uh and one of the charts in there was uh the the um interest on on debt. And I I tell you


it's scary. It's just I mean it sort of goes along like that and then you know it's done that. Um that if you like is really what's happening with the debt trap and that's why this can't be muddled through anymore. This is coming to an end. I mean it's it's actually as simple as that. You need to look at you need to look at the whole thing in the round. The idea that we can continue to run high levels of debt. I mean the other thing is that um you know we did have higher levels of debt . Most


countries had uh debt to GDP of 160 180 200% at the end of the second world war. But the difference then was that we were on the Bretonwoods gold standard and that kept interest rates down and it allowed for the expansion of credit which was um angled at production more than anything else. So it was inherently non-inflationary. So what you had was the ability to um uh to do yield curve control. This was that was the time of yield curb control and you could also persuade investing institutions to act in a certain way.


There was all this sort of you know um you know if you like off therecord briefing of institutions so but that that cannot happen now. It just does not happen. You cannot have yield curve control. You cannot control the yields on the long long end of the bond market. They're no longer controllable. and the fact that we're not tied to a gold standard which is a severe provides a severe limitation on inflation if you like you know the the way prices behave um that doesn't happen either. So you


know this is this is an inherently different situation from the past where we've had higher rates of um debt to GDP and got away with it but not under a pure fiat currency. That's the point I'm trying to make. And I think that is why we're coming to the end of a fiat currency era with everything that that implies. Various economists have said that not one man in a million understands money or Yeah. Um including I would say those economists I suspect that's probably being a bit harsh. But I


mean the fact is that you need to understand the difference between common law money which is final settlement and that is precious metals gold or silver or whatever is accepted in your jurisdiction and credit. All the rest is credit and this was said by John Peront Morgan in evidence to Congress I think in 1912. Um gold is money and all else is credit. And he's absolutely right. It's still true despite all the propaganda that uh governments throw at us. If you understand that then you have got


if you like the basis of beginning to understand what is happening to the value of credit and how it is likely to um proceed from here. And uh I dedicate uh myself and through my Substack um to educating people about this and to if you like um uh trash rubbish if you like um macroeconomics macroeconomics is not a science at all. It was invented by Kanes on the back of his general theory. You've got to actually understand um money and old-fashioned classical economics. And if you do that, then you have got a


very good um chance of protecting yourself from some very violent financial times ahead. So my mission basically is to try and educate people so that they can survive it. It's a time when you um protect your wealth. Hit the subscribe button and turn on notifications so you never miss our daily market updates.