Decoupling from Gold Killed the USD in the '70s.

Classic Milton Friedman Clip

Gold Comment: The slight change in LBMA/COMEX EFP, the drainage of US gold recently, and the Shanghai premium expansion and contraction are related. We are 99% sure from 2 (unrelated) sources connecting dots. One very reliable. China is likely taking delivery of Stateside gold through a bank or bank-related intermediary.

*GDX ETF** Update On 10-23-2023 into 10-24-2023 GDX ETF shares saw massive increase in the cost to borrow shares to short. Went from .25% to 3.54% in one day. The 3 year chart below shows how unusual this spike occurs.- SOURCE

It is quite possible the GLD shares inconsistency of availability to short as pointed out by Bob Coleman is related to the above observations… as in whoever (GLD bank ) is making shares unavailable for shorting is related to the Shanghai/Premium arbitrage trades and subsequent US drawdown.

Stay tuned.

Foreign sheiks don’t produce it, Oil imports don’t produce it. What produces [inflation] is too much government spending, and too much creation of money and nothing else

-Milton Friedman

TL;DR

(Bonus, Blackrock’s Weekly Commentary)

1- Inflationary Expectations Say This is Not Over By a Long Shot

• Inflationary expectations are key to getting inflation under control once and for all

• The 10 year inflationary average expectation is the most reliable indicator of these

  

• Unless current inflation (gray line) gets back under those 10 year expectations (green line), consider inflation not dead at all.

• That implies inflation must get below 2% to break the inflationary expectation cycle and negate the now rising 10 year average (green line)

2- Decoupling from Gold Murdered the USD, Not Oil

• The “real” price of oil in 1975 right before the next spike in inflation,was almost the same as it was in 1971

  

• Oil prices rose in free(r) market response to the realization that there were just too many dollars floating around post untethering to gold in 1971