The Midas Touch ???, page-77

I know that I keep banging the drum on this subject, but keep your eye on the US long end yield curve. A secular bear market began in global interest rates 4 years ago, after a 40 year secular bear market, and pretty much nobody, except those with their eye on the ball have noticed, nor understand what that means going forward.
Nearly every financial media commentator is talking about lower rates on the horizon, as too are the banks, and that totally flies in the face of what occurred last week, which was that in response to a flight to safety out of risk assets, the flight wasn't to bonds, but to gold.

I have pointed out previously how between June '72 and December '74, US rates over doubled, and gold went up 347%.. So to all those that say that rates and gold are inversely correlated, they are just plain wrong.

When, NOT if, the US 30 year yield breaks through the 5% level it is going to run hard. The 10 and 20 year will follow suit, and it will take global rates much higher very rapidly. The 10 year, the most important bench mark inn the world will run toward 9% and likely break it. That will take Aussie mortgage rates to over 10%.
Trump and Bessent arrogantly think they make the rules, when in fact it is the bond markets (vigilantes), that make the rules, and they ignore that the BoE were taught that lesson nearly 3 decades ago and Liz Truss was also given a lesson just recently.

Think about the impact that 10% mortgage rates is going to have on Australian property prices and the economy. Any wonder gold is going ballistic in USD but particularly AUD.

Trump has just played his part in the cycle, by unleashing the next stage of the secular bear market in bonds, stocks and real estate, that will last for years, and the secular bull market in interest rates, and the commodity complex, lead by gold and silver. A repeat of 5 decades ago.


The 5% level is just screaming to be broken to the upside