Gold surges past $3,700 as the Fed prepares for interest rate cuts - signaling deep concerns over economic stability
By ljdevon // 2025-09-18
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  • Gold surges past $3,700 as the Federal Reserve prepares to cut interest rates for the first time since 2024, signaling deep concerns over economic instability.
  • The U.S. dollar weakens to a seven-week low, while silver nears $44, reflecting a broader loss of confidence in fiat currency.
  • Investors are fleeing traditional assets, pivoting to gold, silver, cryptocurrencies, and tangible goods like ammunition and fuel as hedges against inflation and systemic risk.
  • Historical patterns suggest rate cuts at this stage of monetary expansion often precede financial crises, raising alarms about bank solvency and market volatility.
  • Trade tensions between the U.S. and China may ease, but the real story is the global scramble for hard assets amid a collapsing faith in central bank policies.
  • Experts like John Rubino and David Morgan warn of an impending dollar collapse, urging preparation through decentralized, intrinsic-value assets.

The Fed’s rate cut: a band-aid on a bullet wound

Jerome Powell’s Federal Reserve is about to do what it does best: apply a temporary fix to a structural problem and call it prudence. When the FOMC announces its widely telegraphed 25-basis-point rate cut on Wednesday, the move will be framed as a measured response to “softening economic data.” Translation? The economy is wobbling like a drunkard on a tightrope, and the Fed’s solution is to loosen the rope further. Lower interest rates mean cheaper borrowing, which, in theory, spurs spending and investment. But when the cost of money is artificially suppressed for years on end, the result isn’t growth — it’s a sugar high followed by a crash. The only difference now is that the masses are demanding the rate cuts just to survive - but this comes with an inevitable collapse that will stretch the dollar's value to its breaking point. The Fed’s own projections are expected to show slower growth and rising unemployment. That’s not the backdrop for a confident, thriving economy. It’s the setup for a classic central bank panic. Powell will face tough questions at his press conference, but don’t expect straight answers. The Fed’s playbook hasn’t changed since the 2008 financial crisis—print money, prop up asset prices, and pray the music doesn’t stop. The difference now? The band is playing louder, the dance floor is more crowded, and the exits are narrowing. Gold’s meteoric rise isn’t just about inflation hedging; it’s a vote of no confidence in the entire monetary system. When the world’s reserve currency starts to look like a leaky boat, investors don’t wait for the captain’s reassurances. They start swimming for shore. And right now, shore is anything that can’t be inflated away with a keystroke.

The great migration: from dollars to dynamite (and everything in between)

If gold is the canary in the coal mine, then the canary is currently screeching at the top of its lungs. The yellow metal doesn’t just climb to record highs on a whim. It does so when the people who move markets — hedge funds, sovereign wealth funds, billionaires with yachts bigger than football fields — decide that cash is trash. And they’re not wrong. The U.S. dollar index just hit a seven-week low, a quiet but damning indictment of the greenback’s eroding strength. Meanwhile, silver, the poor man’s gold, is surging toward $44, a level it hasn’t seen since the aftermath of the 2008 collapse. Coincidence? Hardly. But here’s where it gets interesting. The smart money isn’t just buying metals. It’s diversifying into assets that don’t rely on the kindness of central bankers. Bitcoin, once dismissed as a fringe experiment, is now trading in the $60,000s, a far cry from its post-FTX lows. Privacy coins like Monero are gaining traction among those who prefer their wealth untraceable by prying eyes. And then there are the tangibles — the kind of things that don’t need a blockchain or a bank vault to hold value. Ammunition. Diesel fuel. Iodine tablets. Emergency medical supplies. These aren’t just preppers’ fantasies; they’re the new frontier of wealth preservation for those who’ve lost faith in the system’s ability to provide. Why the shift? Because history has a nasty habit of repeating itself. The last time the Fed cut rates in the face of a wobbly economy, we got the 2008 financial crisis. The time before that? The dot-com bubble burst. Each time, the Fed’s solution was to print more money, bail out the reckless, and leave the little guy holding the bag. This time, the bag is heavier, the stakes are higher, and the alternatives — gold, silver, crypto, and yes, even bullets — are looking like the only lifeboats left.

Trade wars, TikTok, and the illusion of stability

Amid the monetary chaos, there’s a subplot playing out in Madrid, where U.S. and Chinese officials are hashing out trade terms. The headlines will focus on TikTok’s divestment and the thawing of tensions between the world’s two largest economies. Better trade relations mean better economic growth, or so the narrative goes. But dig deeper, and the real story is about demand — specifically, the demand for hard assets in a world where trust in paper promises is evaporating. China, the world’s largest gold consumer, has been on a buying spree, vacuuming up bullion at a pace that would make Fort Knox blush. The People’s Bank of China added another 10 tons to its reserves last month, part of a years-long strategy to reduce reliance on the dollar. Russia, Iran, and a growing list of nations are doing the same. Even Wall Street, that temple of fiat worship, is starting to wake up. Bank of America recently told its clients that gold could hit $4,000 by next year. That’s not a prediction; it’s a warning. The Fed’s rate cut this week won’t be the last. It’s the first domino in a line that stretches back to the 1971 abandonment of the gold standard, when Richard Nixon severed the dollar’s last tether to reality. Since then, the U.S. has operated on a faith-based currency system, where the dollar’s value is backed by nothing more than the belief that it has value. But belief is a fragile thing. And right now, that belief is fraying at the edges. Sources include: Kitco.com Kitco.com Enoch, Brighteon.ai
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