The flaw in your argument is that a weak dollar makes earnings of U.S. companies stronger which drives revenues and earnings, bringing in more tax dollars. You are long gold because of a weak dollar not due to rates. You are being political. We need to cut the size of government and keep the economy strong to lower the deficit.
A weaker dollar can boost overseas earnings for U.S. multinationals, which may lift profits and tax revenues. But during the past, the net fiscal impact is limited, especially when accounting for higher import costs and reinvestment abroad.
As for gold, my position isn't political - it's based on real yields, not just the dollar. Gold tends to rise when inflation-adjusted rates fall, even if the dollar stays firm. That’s the key macro relationship behind the trade.
Instead on the deficit, reducing government size helps, but the real driver is improving the growth to interest-cost ratio. That takes structural reforms and long-term credibility - not just currency moves.
The flaw in your argument is that a weak dollar makes earnings of U.S. companies stronger which drives revenues and earnings, bringing in more tax dollars. You are long gold because of a weak dollar not due to rates. You are being political. We need to cut the size of government and keep the economy strong to lower the deficit.
A weaker dollar can boost overseas earnings for U.S. multinationals, which may lift profits and tax revenues. But during the past, the net fiscal impact is limited, especially when accounting for higher import costs and reinvestment abroad.
As for gold, my position isn't political - it's based on real yields, not just the dollar. Gold tends to rise when inflation-adjusted rates fall, even if the dollar stays firm. That’s the key macro relationship behind the trade.
Instead on the deficit, reducing government size helps, but the real driver is improving the growth to interest-cost ratio. That takes structural reforms and long-term credibility - not just currency moves.