For decades people like Don McAlvany, the founder of the McAlvany companies, rang the alarm bell about globalism. While the vast majority of Westerners took Western—especially American—functionality, freedom, and wealth for granted, Don and his fellow analysts cautioned that these blessings are perishable. Globalism was and is, in effect, global communism—from each according to his ability, to each according to his need. America had great ability, Somalia and China had great need.
Like it or not, President Trump’s second term has largely been about reversing this globalist system. He has exposed much of its agenda and the workings of many of its institutions. However, his enemies, the purveyors of globalism, are well entrenched. Their agenda is becoming more openly communist, and they never take a day off. Their god is their party (increasingly Democratic Socialist rather than Democrat), and their morality is its furtherance—by any means necessary.
Of course, Trump’s economy retains many of America’s socialist commitments. Doing so might be honorable and politic, but it continues to run up the debt at a dizzying rate. And his spending to stimulate American economic growth might not pay off quickly or in the way he hopes.
The upshot is that whichever side wins in this battle of titans, ordinary Americans are likely to go through some tough times. And this site’s constant refrain, backed by research, facts, analysis, logic, reason, and millennia of history, is that gold is a very good friend to have in such times.
Key Takeaways:
- The Strait of Hormuz is not the only commodity choke point of concern
- Words matter, but reality matters more
- Like the ocean, markets can have different dynamics on the surface and deeper down
The McAlvany Weekly Commentary: Inflation Is The Plan, Gold Is The Answer
David and Kevin start their Commentary by zeroing in on Scott Bessent’s attempt to reassure markets—claiming “asymmetric information”—even as the broader backdrop points toward financial repression, fiscal dominance, and the possibility that debt is managed through inflation, suppressed rates, and a weaker dollar. They argue that efforts to “buy down” interest costs via Treasury interventions (including actions tied to Japan and an Operation Twist–style approach) can only go so far, because control is—like a magician’s patter—often more illusion than outcome. The hosts connect this macro tension to daily-life consequences: higher prices for necessities, strained global wheat supplies, and geopolitical choke points like the Black Sea. From there, they revisit the Summers–Barsky opportunity-cost logic for gold versus rates and conclude that gold may still have room to run as confidence in currency and government debt erodes. Along the way, they note foreign Treasury holders, rising yields, and how investors may be “opting out” of the dollar in favor of hard assets.
Hard Asset Insights: Be Long Reality
Morgan’s post argues that, despite upbeat rhetoric, the “new boss” dynamic is still driving the same constraints: fiscal dominance, excessive debt, and the straitjacket of inflation control. He notes that while Kevin Warsh at Jackson Hole sounded hawkish (“broad financial conditions” not restrictive and “work to do” on underlying inflation), he likely won’t be able to follow through with sustained aggressive rate hikes. Any front-end tightening would spark a cascade—higher yields, weaker tax receipts, dollar strength, and foreign selling of Treasuries—making it politically and fiscally self-defeating. By contrast, Scott Bessent’s actions (yen support, expanded Treasury buyback/liquidity support, and even potential use of the Treasury General Account) look like soft yield-curve control. Morgan then pivots to the investor “reality trade,” citing Jeff Currie’s view that hard assets are the durable hedge, and concludes with market performance snapshots and the reminder that institutions can change optics but not arithmetic.
Golden Rule Radio: What’s Driving Gold Higher?
Tory, Miles, and Rob frame the episode with a “keep an eye on the fundamentals” approach, noting markets were relatively calm after the volatility triggered by the prior week’s Fed announcement. In that calmer tape, gold and silver were up about 2.5% each, while platinum and palladium barely moved. MPM then breaks down what’s driving gold higher and why that matters for the next few months, emphasizing the linkage between precious-metals performance and macro conditions (with the S&P and the dollar index edging only slightly higher, yet broader signals still pointing toward a declining trend). The core message is that even when prices move modestly day to day, the “why” underneath—Fed-driven expectations, currency dynamics, and the relative strength across the metals complex—can set the direction for the near-term outlook. They close by telegraphing a cautious-but-constructive forecast: gold and silver look poised to continue reflecting these drivers as the market digests the policy shock and regains its footing.
