28 June 2023
One concerning factor is the large deficits in the US, which may require the Treasury to sell a significant amount of debt. However, there may not be enough demand for it. If that happens, it will likely lead to either much higher interest rates or the Fed printing a lot of money, potentially exacerbating the debt and financial conditions. In such a scenario, gold, historically seen as a safe haven asset, could play a crucial role. It is essential for leaders to prioritize cooperation rather than conflict to navigate these uncertain times. However, preparing for the worst is also necessary, as unexpected events can occur.