• U.S. Debt Goes Parabolic, Adding $1 Trillion Every 100 Days
  • Gold and Bitcoin Soar as Investors Flee Dollar
  • Copper Rips Higher Amidst Renewable Energy Revolution

The United States’ national debt is skyrocketing, currently growing by about $1 trillion every 100 days. Gold and Bitcoin are breaking out, trading near record highs, as market participants race to protect themselves against the ongoing currency debasement. And, as the renewable energy revolution rolls on, copper demand is soaring as its price diverges with iron ore.

U.S. National Debt Goes Parabolic

The propensity of Washington to spend is reaching levels no one, even the most jaded libertarian, could have imagined. In the U.S. national debt spiraling out of control, rising $1 trillion every 100 days, a Washington Times staffer writes,

“To put the new rise into perspective, the debt expanded to $33 trillion on Sept. 15 after having reached $32 trillion just three months prior on June 15. Before this period, it took nearly eight months for the debt to swell from $31 trillion, suggesting a significant uptick in the rate at which the government is borrowing.”

If that wasn’t bad enough, Biden just submitted a fiscal year 2025 budget proposal that would see the U.S. government spend $7.3 trillion if passed. With the U.S. only receiving about $4.5 trillion in tax revenue – the pace of debt accumulation will continue into the stratosphere.

As the government spends well beyond its means, inflation will persist, benefiting assets like gold and Bitcoin.

Gold Holding Strong as Interest Rate Cuts Near

In an endless dance of words, Fed Chair Jerome Powell most recently said inflation is “not far” away from where it needs to be to start cutting interest rates. As the U.S. dollar comes under pressure, investors are buying gold, realizing that the Fed will likely begin cutting rates soon. The Fed must cut soon because there are trillions of dollars on the U.S. government balance sheet set to roll over at higher rates in 2024 and 2025. The government already spends more than $1 trillion on interest – more than the entire defense budget.

All of this debt has the average investor spooked. Gold reached a new all-time high in early March, nearly touching $2,200 per ounce. Bitcoin has also benefited, soaring above $70,000, outperforming all other assets in 2024.

Alex believes that if the U.S. Dollar Index drops below 100, gold will continue its rally to another all-time high.

Decarbonization Movement Gives Copper Bid

With the renewable energy revolution in full swing, global demand projections for critical minerals like copper, nickel, lithium, and others are expected to increase dramatically in the next decade. While China’s economy stumbles, often bad news for copper, demand for E.V.s and the broader electrification of our economy is boosting demand.

Copper prices surged above $9,000 per ton or $4 per pound – an 11-month high. Moreover, the metal is diverging from iron ore, which points to the broader weakness in the global economy.

source: Bloomberg

Aaron argues that the world needs to build new mines for these metals much faster to meet anticipated demand. As governments push through policy that requires billions of tons of metals in the coming years, at its current pace, the mining sector won’t be able to deliver.

It was recently reported that the average timeframe for a mineral discovery to become a mine is nearly 16 years!