The Bitcoin Versus Gold Debate May Quickly Reverse Course

The Bitcoin Versus Gold Debate May Quickly Reverse Course

On Friday we looked at three key charts as we ended the week. With the inflationary pressures becoming obvious in the data last week, we looked at the well intact trend in broader stocks and the well intact trend in oil prices—both bullish. We also looked at the ugly chart in the dollar (bearish). And we may be seeing clues in today's market behavior that suggest people are waking up to the seriousness of that scenario. Money is aggressively moving OUT of bitcoin (the antithesis of a "hard asset" preservation of buying power), and INTO gold (the historic battle-tested hard asset preservation of buying power). And these moves look like they might accelerate from here. Gold broke out this morning above the key $1, 845 level, on the back of news that the administration will be distributing even more direct cash handouts (disguised as child tax credits). I say "disguised," as these payments (also called benefits by the Treasury) will also be disbursed to those that don't pay income taxes. So, this, in addition to the first two tranches of direct payments, is looking more like another step toward universal income. So, the government continues to up-the-ante on insane deficit