TL;DR

Trump’s “thank you for your gold” tweet wasn’t just bizarre; it highlighted how easily political games can threaten global stability. It’s a reminder that even seemingly safe investments can be jeopardized by power plays.

Story

Trump’s tweet about demanding “thank you” for holding other nations’ gold reserves sparked a firestorm. Imagine a school bully holding onto everyone’s lunch money, claiming he’s doing them a favor. That’s the simplified version.

How? The US historically stores gold for other countries. Trump’s tweet implied he might leverage this for political gain—essentially holding it hostage. It’s like the 2008 crisis where complex mortgage bundles became weapons of financial destruction.‣ Mortgage-backed securities: Loans bundled and sold as investments, leading to the 2008 crash.

Impact: Global markets wobbled. People worried about war, financial collapse, and another gold confiscation like 1933.‣ Executive Order 6102: FDR forced citizens to sell gold to the government below market price. John, a retiree, saw his gold investment tank overnight. He panicked, sold low, and lost a chunk of his savings. It’s a reminder that political whims can crush ordinary folks.

Lessons: Trump’s tweet wasn’t a joke. It exposed how fragile the global financial system is. This isn’t Aladdin’s cave; it’s real money, real consequences. Like Enron’s accounting tricks, political power plays can create chaos.‣ Enron Scandal: Company hid debt through complex accounting, leading to its collapse.

So, what now? Diversify. Don’t put all your eggs in one basket—or one country’s vault. Question everything. Politicians, like used car salesmen, promise the moon but deliver potholes.

Advice

Diversify your investments. Don’t trust any single government or institution with all your assets. Assume the worst, hope for the best, but always verify.

Source

https://www.reddit.com/r/wallstreetbets/comments/1k47pc1/calls_on_gld/