In a world of unlimited money printing and new taxes on unrealized gains, the only way to win is to own assets your government cannot print or debase. In this episode, I'm joined by Jeroen Blok, a professional investor with over 20 years of experience managing institutional wealth. Today we're unpacking his new book, The Great Rebalancing in three parts.From the systemic failure of the 6040 portfolio to the scarce asset solution involving Bitcoin and gold. We discuss why safe government debt has become a we ...

Group 1: Precious Metals Market Overview - Gold prices have surged past $5,000 an ounce, with futures hitting this milestone earlier than anticipated by Wall Street [1] - Silver has experienced a near-parabolic rise, climbing 50% year-to-date, raising concerns about the rapid increase in precious metal prices [2] - The rise in precious metals is attributed to a "debasement trade," as investors seek to protect purchasing power amid increasing global government debt [1][2] Group 2: Economic Indicators and Predictions - The US dollar has begun the year on a downward trend, reaching a four-month low, which is expected to further boost gold prices [3][4] - Goldman Sachs has raised its year-end gold price target from $4,900 to $5,400, citing increased participation from private investors [4] - Analysts suggest that risks to the gold price forecast are two-sided but skewed to the upside due to ongoing global policy uncertainty [5] Group 3: Market Dynamics and Trends - Gold has rallied over 16% year-to-date, following a significant 65% surge in 2025 [6] - Demand for gold from foreign central banks has been strong, but this alone does not account for the substantial rise in prices this year [7] - The broad increase in all precious metals suggests that central banks are not the primary drivers of the current market dynamics [8] Group 4: Other Precious Metals Performance - Platinum has also reached new highs, gaining over 40% so far this year, indicating a strong performance across the precious metals complex [9]

Core Viewpoint - The global economy may be on the brink of a sovereign debt crisis, driven by a significant rise in long-term government bond yields, despite a recent decline in short-term interest rates [1][2][6]. Group 1: Long-term Bond Yields - A "thoroughly alarming" spike in long-term government bond yields indicates potential early warning signs of a global debt crisis [1]. - Investors are demanding unprecedented premiums for holding long-term government debt, reflecting uncertainty about when debt becomes unsustainable [3]. - The 10-year Treasury bond currently yields 4.22%, while the 30-year Treasury yields 4.84% [7]. Group 2: Global Context - The shift in bond yields is not limited to the U.S.; it is more pronounced in the G10 countries, particularly Japan, the UK, and France, which are experiencing unprecedented forward yield levels [4]. - Japan's 10y20y forward yield has surged to 4.5%, marking a historic anomaly [4]. - France's fiscal challenges are causing concerns about Eurozone debt, affecting even traditionally safe havens like Germany [4][5]. Group 3: U.S. Market Impact - Although U.S. Treasury yields appear less severe due to safe-haven inflows, they are still influenced by global chaos, indicating a synchronized rise in borrowing costs [6]. - The market index tracking the yield on the 10-Year Treasury Note has declined by 8.14% over the past year, while the 30-year Treasury has seen a slight decline of 0.08% [8].