This Is What We Discussed – Gold $4,000, Silver $42!

Trump's Economic Advisor

You wouldn't know it, because he doesn't like the publicity, but Stephen Miran is one of the most influential economic advisors to President Trump.

If you care to read his entire 41-page-long report, you can access it HERE.

I will attempt to summarize the key points, so that you can, from here on, understand Trump's way of viewing the world.

At its core, Trump wants to achieve three things:

1. Retain reserve currency status.
2. Revive manufacturing in the U.S. of high-end products.
3. Deal with all countries to share in the burden of global military security.
4. Preserve essential industries, tied to national security.

This, in a nutshell, is Trump's vision.

It makes sure that if the developed world wants the benefits of America's stable currency, mighty army, deep financial markets and incredible consumption power, that it doesn't cause America's own demise.

The first assumption that Stephen Miran makes is that the dollar's reserve currency role is INHERENTLY OVERVALUED.

Think about what it means if the senior economic advisor puts forward a thesis that this strong dollar is hurting America.

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This is the first reason that I believe gold is headed to $4,000/ounce and that silver is heading to $42, in short order.

Tariffs offset the dollar's overvaluation, which is why they're so important.

Secondly, the dollar's overvaluation makes it so that China's currency remains competitive and because it doesn't play by the rules, they keep debasing it and manipulating it to keep it suppressed. Tariffs, especially the 30% on China, help to put that into some equilibrium; if Washington can't change the behavior of the CCP, at least it can enjoy the revenue of imports.

If China doesn't have to hold as many dollars as before, it will choose more gold. China's leadership doesn't trust anyone, certainly not Putin or Europe --- it trusts God's money.

Because the United States does not play games with its currency and is highly transparent about its policies, the world expects the military to secure the trade routes. This is a vicious cycle; American companies aren't punished for searching for salary arbitrage in the Far East, Africa or South America, losing middle-class jobs, while going into debt to fund the military that facilitates this magic of maritime shipping.

This is what Stephen Miran calls "burden sharing" and Trump calls "getting ripped-off."

The de-industrialization of America, in order to appear generous to other countries, including those who don't believe in Western values, only CHEAPENS the incredible Constitution and Bill of Rights that the Founding Fathers fought for 250 years ago.

We have reached a tipping point, argues Miran, where the cost of maintaining the reserve currency status, which allows the U.S. government to borrow funds, seemingly without limit, is actually counterproductive to its prosperity.

Trump sees everything with a very clear head: is the current system helping the United States or not?

The cost of the friction to the system, by rocking the boat, by rattling the cage, by shaking things up, is secondary to the long-term prosperity of the country.

Best Regards,
PortfolioWealthGlobal.com