Buying gold and silver.

[Maddog]

Trump's policies and rhetoric appear to add some additional fuel to the fire.

 

[3Roosters]

Trump's policies and rhetoric appear to add some additional fuel to the fire.

Loving it as I bought a good number of ounces in Spring/summer 2023 for less than half that!

 

[Maddog]

Why Interest Rates Are the Real Battleground​

To understand the stakes, you have to look at the government’s balance sheet.

Over the next 12 months, roughly 25% of U.S. federal debt is set to mature and must be refinanced. For years, that rollover happened at near‑zero interest rates, keeping interest costs manageable.

That era is over.

With rates hovering near 4%, refinancing today would dramatically increase interest payments. Net interest expense is already the second‑largest line item in the federal budget. If rates stay elevated, interest costs threaten to crowd out everything else the government spends on.

Put simply: the government cannot afford high rates.

That’s why Powell’s comment matters so much. The threat of legal action isn’t about past testimony — it’s about forcing the Fed’s hand on future policy.

Why This Is Rocket Fuel for Gold and Silver​

From a precious metals perspective, this setup is powerful either way.

If rates stay high, the government’s fiscal position continues to deteriorate — undermining confidence in the dollar and the broader system. That’s already bullish for gold and silver.

If rates are cut under political pressure, the outcome may be even more explosive. Rate cuts in a high‑inflation environment push real interest rates deeper into negative territory — a condition that has historically aligned with major precious metals bull markets.

Negative real rates reduce the opportunity cost of holding gold and silver and highlight the risks of paper assets. That’s why metals tend to respond before policy officially changes.

Markets don’t wait for press conferences. They move when the incentives become obvious.

The Bigger Lesson Governments Still Haven’t Learned​

There’s a deeper issue beneath this entire episode: governments continue trying to solve a debt problem with more debt.

Artificially low rates helped create today’s debt burden. Using artificially low rates again to manage that burden doesn’t fix the problem — it compounds it.

At some point, debt must be reduced, not refinanced forever. Until that lesson is learned, precious metals will remain one of the few assets outside the system — with no counterparty risk and no political strings attached.

That’s why gold and silver keep doing what they’ve always done when pressure builds: they quietly signal trouble ahead.