Currencies, Bonds and Gold

by Barry Dawes

Gold ready to move higher
Gold imports to US surged before the tariffs apply
Gold stocks are so cheap
DOGE is slashing US expenditures
The criminals are all being outed now
Its GLOBAL
Coming to Australia too!
Bonds looking interesting
US$ likely to strengthen further
ASX Gold Index about to break much higher

I do hope everyone is observing what is happening in the US and what is spreading all around the world.

It is the Great Awakening.

You can call it what you like.

And like it or not.

But it is happening.

The US, UK, Argentina, Canada, Italy, Poland, France, Germany. Everywhere and spreading.

The new Trump Administration is now unwinding in rapid time much of the evil that has developed since the Post-WWI Gold Standard set up under the Bretton Woods Agreement in 1944 was abandoned in August 1971.

You might recall one of these notes pointing out that President Johnson in 1967 set in train the administrative changes of Deficit Spending that forced President Nixon to make that announcement in August 1971 that broke the link between the US$ and gold.

The World changed at that exact time.

For the next 50 years governments around the world set off in developing the Welfare State that took control of lives from the individual and placed it with the State.

Governments created dependents in the form of welfare recipients and of course government employees.

And intruded into education, health and medicine, labour, business and pushed environmentalism.

This is clearly shown with this register of US Federal Regulations.

Started right on cue in 1971.

Source Ten Thousand Commandments

The Great Experiment in Socialism was well promoted by left wing academics and then State-owned media and then all media.

There was experience at first hand in the remarkable expansion of Canberra and its bureaucracy after PM Whitlam’s December 1972 Election win.

Massive expansion and the carpet baggers came in. So many from Melbourne. How strange!

Inflation and high interest rates.

As Margaret Thatcher so succinctly put it, `Socialism is wonderful until you run out of Other Peoples Money’.

The tidal wave of Trump Executive Orders is now changing all that.

The biggest issue is really the massive uptake of personal income taxes at the Federal level (US$2.5tn +Medical and Social Security taxes = US$4.1tn) and then the squandering of these funds in utter waste.

Taxpayers are not getting value for their money and living standards have been falling.

DoJ-FBI, Electoral Fraud and Gender and DEI matters are important issues but fascinating developments are taking place elsewhere.

Budget cutting is well underway.

The 2 million Federal employees have all been ordered to show up to work in the office and all have been given the offer of 6-8months pay to resign.

All Federal Grants have been frozen.

Elon Musk and DOGE have already concluded (on Saturday 1 Feb 2025) that the FY2026 Budget Outlays will be reduced by US$4bn per day by Sept 2025 to reduce the deficit from US$2 to just $1tn.

Finding consistent details not easy with the US bureaucracy but here is some to review.

**Expenditures are way ahead of revenues.**

The US is where it is.

It has to change.

And changing it is.

Note this – 1 February 2025

84.7 million views.

The World now is starting to understand.

DOGE also found that the chief financial controller in the Treasury took no fiduciary responsibility at all and simply signed off on every and all transfers of US Government funds.

Evil criminal thieves.

And you thought I was just sounding off!

So we are here with the US Bond Market and this is critical for gold:-

Are we seeing a major reversal here?

Not because the stock market is going to crash and the US go into severe recession but because the supply of bonds is about to be reduced.

The US will be a great place to invest.

Why go anywhere else?

**Euro likely to fall below parity soon.**
**Nothing to like politically to hold the EU together**

While the US yields might be turning lower, the yields elsewhere in these countries are heading higher.

Canada

The tariff issues are bringing out massive levels of public debate over the mismanagement by the Justin Castro regime.

He has resigned but they are trying to replace him with the former Governor of the Bank of England.

Constitutional crisis coming up.

The Canadian currency has just made a sharp selloff that could see it heading lower.

But note that the CDNX on TSX-V is moving up.

Mexico

Fun things going on with Mexico and its border and the cartels.

We are living in very interesting times!

The Peso could just drop into the next channel and head much lower.

Australia

In Australia we have government bond yields that appear to have peaked in 2023.

The A$ is not finished yet.

Same level as 40 years ago.

But indications are for a strong move higher against the Euro, Pound and Yen.

Anticipating a near term election and change of Government.

Goodbye to the simpletons.

Gold

• New US$ highs last week
• What will tariffs do to precious metals?
• Massive transfers out of London vaults to US to avoid tariffs
• Short positions still massive
• Suppression of gold for decades still to be unwound
• How high gold?

With all the above happening the opportunity for gold is now very strong.

A new Gold Standard will return.

Central banks will just have to keep buying gold!

How much does the US now hold