Mining's Golden Moment, Biden’s Terrible Tax Hike

This is a free preview of a paid episode. To hear more, visit vblgoldfix.substack.comHousekeeping: Good Morning. Bretton Woods Three is a Process, Not an EventToday:* Premium: Mining Catalyst’s apparent* Commentary: China Sanctions are bad, Biden’s Tax Hike is worseMarkets Yesterday:US equities were mixed on Wednesday ahead of the Q1 reading of US gross domestic product.Premium: Mining Catalyst?We all know miners are undervalued. The key to getting love for chronically undervalued assets is to find the catalyst. Catalysts can come in event-form. More frequently they come in narrative form. The old, “Their time has come” concept applies here. China is influencing not just bullion prices now, but mining prices as well; and Mining may be a narrative who’s time has come.* China is now influencing miner prices as well as bullion itself* Western analysts are taking note* One of them has made a comment today on topic* The world may start to wake up to mining sector valuationsMore in premium including the bank that may be at the cutting edge in investor perception on mining shares.Commentary: China SanctionsAntony Blinken has landed in China amid a worsening rift between the world’s two most powerful countries that threatens to overshadow otherwise improving relations. The US secretary of state arrives with a warning that the US and its European allies are no longer prepared to tolerate China’s sale of weapon components and dual-use products to Russia, which are helping Vladimir Putin rebuild and modernise his arms factories, enabling him to intensify his onslaught on Ukraine. Guardian* Blinken’s Trip to China is about hurting Russia* The US is threatening sanctions against china if they don’t abide (banking/finance)* China likely knew this was coming in some form* China has been preparing for this for years with gold purchases and stockpiling of key materials* The US among other things believes this will weaken their ties to Russia* The US should have bluffed this 2 years ago with gold at $1600. China only sees it as weakness now.* The likely effect is to accelerate their work towards multipolarity and divorcing themselves from Western influence* As an acceleration event, one cannot help but think this is all theater, or already scripted. Certainly this is no way to slow the loss of a close friend.* The US election and the demonizing of China is now front and center with Gold as a tool of accusations of trade manipulation- FT, BBG, on Gold/China speculators/manipulation/ frothy etc* China suffers as well: foreign capital will accelerate exit* Perhaps we feel they will cry uncle and come back into the fold given their own economic woes* United States actually had the objective of reducing Chinese assistance to Russia they would not be taking these steps.Market News: Biden Tax HikeTax hike: Democrats will likely prove successful in raising individual income tax rates and in strengthening audits of wealthy Americans as they work on overhauling the U.S. tax code in coming months. That’s a key takeaway from a survey of 15 current and former White House and congressional aides specializing in tax policy completed by Bloomberg this month. A tax on unrealized capital gains, as envisioned by Senate Finance Committee Chair Ron Wyden, was deemed impossible to get through Congress, the survey showed.Geopolitics:* White House National Security Adviser said the US is still in talks with Israelis regarding Rafah and expects in-person Rafah talks to take place relatively soon.* US official said the US quietly slipped long-range ATACMS missiles to Ukraine in the March aid package, which were fired by Ukraine against a Russian target last week.Some headlines via NewSquawk or DataTrekData on Deck:* MONDAY, APRIL 22 None scheduled * TUESDAY, APRIL 23 9:45 am S&P flash U.S. services PMI * WEDNESDAY, APRIL 24 8:30 am Durable-goods orders March* THURSDAY, APRIL 25 8:30 am GDP Q1 * FRIDAY, APRIL 26 PCEPremium: ***DO NOT SHARE THIS***