White House Says U.S. Will "Dictate" Policy in Venezuela, Bloomberg Rebalancing Won't Stop Silver or Gold Rallies; Pipe Dreams of Inexperience

Editor's Note: While preparing this report, Money Daily suffered a power outage from approximately 8:45 an to 9:25 am. We apologize for the delay. - FR

While the world sorts out the latest escapades of runaway rogue U.S. foreign piracy policy, a few items to consider:

White House Press Secretary Caroline Leavitt told reporters, "We’re continuing to be in close coordination with the interim [Venezuelan] authorities, their decisions are going to continue to be dictated by the United States of America."

Now, maybe that was a poor choice of words, because "dictating" is what dictators do, or maybe Ms. Leavitt had a purpose. Either way, it paints the U.S. as a hegemonic bully and President Trump as a dictator, ruling by dictate rather than legislation, otherwise known by that quaint, old term, "the rule of law." For all intents and purposed, the rule of law has been given the heave-ho.

Seizing Russian tankers, or, for that matter, the assets of any country, anywhere, at any time, is not going to endear those whose assets are seized, sanctioned, frozen, or stolen to the use of the U.S. dollar in international trade. The BRICS and associated countries have almost completely ditched the dollar, preferring bilateral trade deals settled in native currencies, yuan, gold, other commodities, the "unit", or a combination of such. De-dollarization is proceeding wiht alacrity. The sanctions and anti-trade policies of the U.S., U.K., and E.U, are accelerating the process, rather than impeding it.

The government was crowing about the U.S. trade deficit falling to its lowest level in 16 years, from $48.1 billion in September to $29.4 billion in October. Imports fell by 3.2% while exports rose by 2.6%, according to the BEA. The main driver of increased exports was gold, that had come into the U.S. previously, in response to potential tariffs, that was shipped back in October when policies were clarified. Fewer imports of pharmaceuticals, primarily from China, drove the numbers down. While some economists were blaring about how this will have a positive effect on fourth quarter GDP, taking a longer view suggests that the effect of tariffs is causing fewer imports, and, on the opposite end, some countries are refusing exports from the U.S.. The overall effect is simply a general decline in international trade with the United States, a prospect the administration failed to anticipate.

While cutting the trade deficit may be a short term positive development, it's likely that October's numbers are an aberration and what can be expected from here on out, until tariffs are lifted or ruled unconstitutional by the Supreme Court (a decision is expected by the end of January at the latest) is a continued decline of imports and exports, which make the entire tariff regime somewhat of a moot point. Chalk it up to inexperience.

At 8:30 am ET, the BLS delivered the December Non-farm payroll numbers, this, the first on-time delivery of the data since September. What the agency noted for inaccuracy at all times found was little change. Their terse statement read thus:

Both total nonfarm payroll employment (+50,000) and the unemployment rate (4.4 percent) changed little in December, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in food services and drinking places, health care, and social assistance. Retail trade lost jobs.

The report also noted that "payroll employment rose by 584,000 in 2025 (an average monthly gain of 49,000), less than the increase of 2.0 million in 2024 (an average monthly gain of 168,000)." In plain English, the labor market is in severe decline.

And, of course, there were revisions: "The change in total nonfarm payroll employment for October was revised down by 68,000, from -105,000 to -173,000, and the change for November was revised down by 8,000, from +64,000 to +56,000. With these revisions, employment in October and November combined is 76,000 lower than previously reported."

Stock futures rose, then fell on the release. Gold and silver both gained. For whatever reason, WTI crude futures spiked about a buck, to nearly $59, despite the president explicitly stating that oil prices would decline. More inexperience.

One final note. Much has been noted the past few days about the rebalancing of the Bloomberg Commodity Index and how this would have a negative impact on the price of gold and silver, and other commodities that have shown strong gains over the past year. It's a complete canard, a rallying cry for the COMEX riggers to keep the U.S. dollar dominant at a time in which it is gyrating toward death throes. It is already underway and the best they've been able to do is keep silver from spiking above $80 and gold above $4,500.

There's certain to be some forced selling, which the Chinese industrialists will immediately buy. The price of gold, silver, copper aluminum are already well upon a trajectory signaling a global resource war and Bloomberg's vain attempts to influence the trend should be dealt with as anything emanating from the Bloomberg news desk is: ignore it. At worst, for a month or less, gold and silver won't rise as quickly as they did in 2025. The rebalancing began on January 8 (yesterday) and will be complete on January 14 (next Thursday). It is already underway with little material impact. The most astute and experienced traders have already priced in any effect it may have.

Gold is higher today, at $4,482, as is silver, $79.01.

The U.S. economy and its leadership is in tatters and is unlikely to be revived by the heavily-promoted AI buildout. The U.S. is light years behind China in terms of long range economic development and is losing ground to India and Russia and to other emerging market nations aligned with the BRICS.

Do not be fooled by serial liars and promoters of false narratives.