The Debasement Trade Isn't Dead It's Been Repriced
Plus: a dollar rerouted in plain sight, the AI tax hits consumers, and Britain's buffoonocracy implies a Gilt crisis as a near inevitability.
Wall Street wrote the obituary for the debasement trade this week, with gold below $4,000, Bitcoin has halved, and the dollar is at a 14-month high. But with a ~6% US deficit and $40 trillion of debt, what actually changed: the price, or the thesis? All this is happening as the dollar is being quietly bypassed, the AI capex bill is starting to land with consumers, and the UK's sovereign-risk "buffoonocracy" is starting a new chapter again, same as it ever was. Overall, nothing has changed except the price in our preferred currency (the dollar) and the vibe. What matters to investors wanting to preserve capital is what this all means for preserving purchasing power. Let's dig in.
https://jeremymckeown.substack.com/p/rip-the-debasement-trade-long-live
https://jeremymckeown.substack.com/p/a-buffoonocracy-in-need-of-a-bond
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