Welcome back to Squawkbox. Joining us now, former Biden Treasury Official Natasha Sarin. She's a professor at Yale School and president and co-founder of the Budget Lab and former economic advisor uh Steven Moore.He's now with Unleash Prosperity. Stephen, you you still have um ears with people that are in charge doing all these things. What what what is your best uh guess as to to what's happening behind the scenes right now.Do you expect what Chuck Schumer has wanted all along, some type of backroom deal w ...

Core Viewpoint - The suspension of the U.S. dollar's convertibility into gold in 1971, known as the "Nixon Shock," marked a significant shift from fiscal discipline to a floating exchange rate system, leading to rampant government spending and increasing national debt [2][4][5]. Historical Context - Prior to 1971, the U.S. dollar was backed by gold, with a fixed exchange rate of $35 per ounce. Post-1971, the dollar became a fiat currency with no intrinsic value, contributing to inflation and national debt [3][5]. - U.S. government debt has surged from approximately $400 billion in 1971 to $37.5 trillion today, representing about 124% of GDP. Global debt has also escalated to $324 trillion, over 235% of world GDP [5]. Monetary Policy and Debt - The detachment from the gold standard allowed governments to increase spending without the need for fiscal restraint, leading to significant budget deficits financed by the Federal Reserve [4][5]. - The current economic environment is characterized by record levels of margin debt, which has risen to $1.06 trillion, up nearly 33% from the previous year, indicating potential market vulnerabilities [10][11]. Gold as an Investment - Gold is viewed as a hedge against excessive debt and monetary mismanagement, with projections suggesting a potential price increase to $7,000 per ounce by the end of President Trump's second term [7][12][16]. - Central banks are actively increasing their gold reserves, with a net purchase of 200 metric tons in the first seven months of the year, reflecting a 4% increase year-over-year [8][13]. Investment Strategy - A recommended investment strategy includes a 10% allocation to gold, split between physical bullion and high-quality gold mining equities, emphasizing the importance of regular rebalancing [15].

As Indonesian President Prabowo Subianto presents his 2026 budget to parliament Friday, the market will be watching how he intends to promote his populist agenda while maintaining fiscal discipline https://t.co/GAJ5Ri5GpO ...