When the gold price is soaring, we should all be afraid

Only the tremor of the tests of last week that some of the greatest investors of American debt were cooling in the United States securities led to peaks in loan costs. The VIX market volatility index has reached the levels not seen by the financial crisis since the White House has been forced to a great reversal of its tariff policy, from frighteningly high to very high. A 90 -day break with the most excellent would allow at least a little space to do business.

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If the president thought that with a jump it would have been free, investors had other ideas: extract the less attractive and highly exploited US debt structures as opaque in Trump while responsibility -based investments were towards the former British Prime Minister Liz Truss. The markets jumped up and then fell again. The cost for maintenance of US debts remains at intensified levels.

The gold was the winner in a world full of risk created by the president, hitting record assessments during the weekend. The last flight for security, its property is a refuge against capricious politicians. As the risk of recession and the risk of inflation increase, the demand for ingots grows, faith in an inert metal that beats the impense markets.

Traders – more frightening now of economic pain – are evaluating three cuts in interest rates in the United States this year. “The next step will be, at a certain point, that the Fed will arrive – and this gives the subsequent paw for gold,” said Bloomberg Domnic Schnider, of Ubs Global Wealth Management. Gold and canarine in coal mines share more in common than their color.

With the “rebound bounce” that always heads upwards, can Trump stabilize the ship? He continues to launch policies at sea, the US agency for the protection of the bourgeois and borders that announce late that smartphones and computers would now be exempt from the rates. The change means that 23 % of the US imports from China will avoid the 145 % rates that Trump insisted on the fact that they were necessary to prevent the country from “resigning our factories”.

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Unlike other nations that the president said they were “kissing my ass”, China responded to its tariff policies not with negotiation offers, but with retaliation. The concessions came in the same way, the President’s advisors correctly judge that the voters are more worried about the price of their iPhones and laptops than they are due to the complexities of Trump’s commercial policies of America.

“Expensive iPhone and other high -end consumption electronics purchased mainly by the wealthy/rich are exempt; but 80 % of the good consumer goods cheap Chinese purchased by [Trump’s] The base of left blue collars in the Dollar stores, Walmart, Costco and other low -price retailers are slapped with a rate of 145 % “, Nouriel Roubini, an economist, published on X after the last announcement.

“Most of them are low -cost Chinese products, with low added value, high -intensity, good quality and cheap that we have never produced in the United States in the first place, or that we have stopped producing decades ago as it is not to our advantage to produce low -cost goods!”

As the internal logic of Trump’s tariff war collapsed, memes of Americans generated by the AI ​​seated to the machines to be sewn to sew the seam trainers were seen.

The main political shifts made in the middle of the night make little to generate confidence, even if Apple’s Tim Cook will be happy. A note from Capital Economics, a Think Tank, reveals that the overall effective tariff rate on US imports is now shot from 2.3 percent last year, up to 27 % this year and to return to 22 %. It is not surprising that the world feels “a little nauseated”.

Trump has a romantic idea of ​​the American past, in his first term that he tells his director Gary Cohn, a time of Goldman Sachs, who saw “parts of Pennsylvania who were large cities of steel and are now desolate”.

“It could be true,” Cohn replied. “But there were cities 100 years ago that made horse carriages and whisk of buggy. They had to reinvent themselves.” The president is at war with himself: a part of the isolationist, a free -wheel part, a free market merchant. At risk is the system itself that made America so effective and rich.

The Telegraph, London

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