Politicians may love inflation, and the media is oblivious, but the metals markets know that America's economic trajectory is unsustainable.

As Peter predicted, long-term interest rates are rising. Even though rate cuts are traditionally considered bearish for gold, gold is consistently reaching new highs and perplexing the media class:

"I said that when the Fed cuts short-term rates, that's going to be the bottom for long-term rates, and they're going to go up. And that's exactly what's happening. Long-term rates and gold prices are rising in tandem, which is the opposite of what most people think. They believe higher interest rates are bearish for gold, but gold is going up anyway. The mainstream financial media didn't expect this. They thought when the Fed cut short-term rates, long-term rates would follow instead of going in the opposite direction."

Why is this? The dollar is condemned to a future of continuous devaluation, and gold is the best hedge against de-dollarization. 

"We still have a weak economy. That's not why rates are rising. Rates are rising for the same reason the gold price is rising. It's because the Fed's rate cuts are a mistake. The inflation genie is not back in the bottle. We're going to have rising inflation. We're going to have skyrocketing fiscal deficits, so bigger budget deficits. We're going to have more supply of treasuries hitting the market, which, as I've said, are going to be monetized."

Peter likens gold's moves to the pre-2008 era, when the media and financial pundits were unaware of future inflation:

"They didn't care about gold when it was $495 an ounce. And now that it's $2,750 an ounce, they still don't care about it because they have no idea what it means, or if they do, they certainly don't want their audience to figure it out. … But when the Fed showed its hand and announced QE, gold took off. Initially, people— not just me— there was a chorus of people saying, 'This is terrible, this is going to be massive inflation. You've got to buy gold."