Daily Gold Market Report

Black Swan’s Taleb Sounds the Alarm:
U.S. ‘Death Spiral’ Due to Mounting Debt Crisis

(USAGOLD – 1/31/2024) Gold prices are up in early trading Wednesday, ahead of the conclusion of the U.S. central bank monetary policy meeting. Gold is trading at $2048.10, up $11.09. Silver is trading at $23.22, up 5 cents. Nassim Nicholas Taleb, author of “Black Swan,” warned that the U.S. is facing a critical situation with its escalating national debt, which he describes as a “white swan” event – highly probable and potentially disastrous. Speaking at a Universa Investments event reported by Bloomberg, Taleb criticized the U.S. political system, particularly Congress, for continually extending the debt limit without addressing the underlying issue. He suggested that the increasing interconnectivity of the global economy makes the situation more precarious. This concern is echoed by other financial experts like former Treasury Secretary Robert Rubin and BlackRock Inc.’s Vice Chairman Philipp Hildebrand. Universa Investments, where Taleb advises, is known for its strategy of profiting from market downturns. Taleb expressed a gloomy view of the Western political system, indicating that a significant external intervention or an unlikely miracle might be necessary to reverse the debt spiral.