Debt to GDP, Gold's World Record, & NEW Swing Trade Idea

Quick hit on the US debt to GDP and a few thoughts moving forward + New TRADE Idea 📈 🖥

Eric Hyde

Apr 02, 2023

∙ Paid

What’s up everyone…hope you are having a great weekend. Some thoughts going into next week…🤔

☘️ Let’s get to it…

In this weekend report, I’ll cover:

Debt to GDP - what is it and where we are in the US 💳
Gold’s new world record 🥇
My thoughts moving forward 🤔
NEW Swing Trade Idea 📈

☘️ Debt To GDP

1️⃣ What IS ‘Debt to GDP’?

I don’t want to assume everyone knows exactly what this means so I thought it was worth re-visiting. For those who already have a grasp on its meaning…well…bear with me.

The debt to GDP ratio is the ratio of a country's public debt to its gross domestic product, or GDP.

GDP = the monetary value of final goods and services produced in a country.

The higher this ratio, the less likely the country will pay back its debt and the higher its risk of default, which could cause a financial panic.

When I discuss this topic with friends, I often explain it this way….🎙

Imagine making $100,000 / year and owing $25,000 in 💳 credit card debt, for example. Ouch. Your debt ($25K) to GDP ($100K) would be 25%.

2️⃣ Now let’s look at the United States…..

The debt to GDP in the United States is over 120%!! 👇

This is equivalent to owing $120,000 when you make $100,000 per year!

Needless to say this has become a problem. Throw in a banking crisis, record high rates relative to GDP, and a bunch of other geopolitical issues…and we have some real issues to deal with in this county.

But this is all nothing you don’t already know.

Why do I share this?

…because the financial system in this country is NOT getting better. It’s getting worse. We’ve been fixing things by printing more because the dollar is the reserve currency. We have systematically devalued this currency with each crisis.

If you know what’s coming, you can position your portfolio accordingly. That’s really why I share this.

☘️ My Thoughts Moving Forward…

US debt will continue to grow = good for 🥇 precious metals, bad for the dollar
Banking crisis not over; more bad banks will surface = more money printing to save banks = good for🥇precious metals
Powell will stop raising rates = good for 🥇 precious metals, good for COMPANY SPECIFIC 💻 technology - not all.
Powell will eventually lower rates = his reason for doing so is because shit is getting real! Ultimately good for 🥇 precious metals!

☘️ Which brings me to a recent new world record……….in GOLD! 🥇

🎯 Friday’s gold futures price (in dollars) was the highest quarterly close in history.

Ever.

World record.

Highest, which is superlative.

Most high, which is grammatically incorrect.

Never happened before.

Okay, you get it.

🥂 Congratulations Gold! 🥂

Why does this matter?

👀 Because everyone can see it.

Institutional money doesn’t put money into the dog that’s not in the race…but now gold is not just IN the race, it’s LEADING the pack. And as money gets rotated on a quarterly basis…winners get bought.