President Trump's Davos Speech Was Just More Blathering and Gaslighting; Japan's Bond Implosion, Gold and Silver Advances Are All That Matters

It's difficult to get a grasp on just who President Trump thought he was addressing in his keynote address at the World Economic Forum this morning in Davos, Switzerland, but he spent most of his time with the the usual gaslighting, boasting the U.S. economy and denigrating Europe, most of whose industrial and political leaders were in attendance.

Among the boasts, the platitudes the president poured upon himself, and the interspersed insults, a few were:

"No inflation, "extraordinarily high economic growth."

"In the last three months, core inflation was just 1.6%"

$18 trillion in investment commitments.

"hottest country anywhere in the world."

"places in Europe are unrecognizable."

"Removed 270,000 bureaucrats."

"slashed the deficit by 27%"

"reduced trade deficit by 77%"

"steel plants are being built all over the country."

"Venezuela will make more money in the next six months than they did in the last 20 years."

"All the major oil companies are going in with us."

"Leading the world in AI by a lot."

"We want Europe to be strong."

"On Greenland, I have tremendous respect for the people of Greenland and the people of Denmark."

"We need it for strategic international security, not for rare earth metals."

"It's the United States alone who can protect this giant peice of land."

"Seeking negotiations to acquire Greenland."

"All we want from Denmark is this land on which we will build the greatest golden dome ever built."

He also talked about battleships. (two may be built in the next five years)

For the most part, it was another campaign speech, even though Mr. Trump cannot run for election again, at least not for the presidency.

Getting back to things that actually matter, stocks took a beating on Tuesday, the worst since October. What stood out was that while stocks were getting what they so richly deserve, gold and silver were absolutely electric. Gold, over the course of January 20th, gained from $4,601 to $4,866, a gain of $265 in just one 24-hour period. Over the same time span, silver rose from $89.94 to $94.34.

Tuesday was a day that was a long time coming. It was a day in which stocks were down greatly and precious metals were up by a huge amount. Tuesday's market activity was an indication of what is happening and what is coming. It is repudiation of paper promises and acceptance of hard assets as the true investable collateral.

Despite all the blather coming out of Davos and President Trump, what really matters are Japan's bond market - which is imploding - gold, and silver.

That's all.