Gold Glitters At End Of The World As We Know It
Date
1/25/2025 12:02:18 AM
(MENAFN- Asia Times)
Investors have been betting massively on an AI-driven future over the past two years, as tech Stocks have led the S&P 500 to a 60% gain. But they also bought the“barbarous relic” of a monetary era that preceded the dollar's hegemony, pushing the price of gold up by almost as much. Notably, gold outperformed alternative hedges against the dollar by a huge margin.
Why hedge against extreme distress amid ebullient tech-driven optimism? The answer is a lot could go wrong-catastrophically wrong, in fact. Tech stocks are now the core asset of the dollar-based world monetary system. The United States has sold US$24 trillion more of its assets to foreigners than foreigners have sold to Americans.
Graphic: Asia TimesThat“net international investment position” of $24 trillion, up from $18 trillion at the end of Donald Trump's first term in office, paid for America's cumulative trade deficit over the past 30 years. For the past 10 years, foreigners have been buying stocks rather than US Treasury bonds, as in the past.
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