In economics, current sentiment is key to speculation. It can create the financial equivalent of self-fulfilling prophecies. For example, when the economy is believed to be in a downturn, consumers tend to spend less which helps put the economy in a downturn.
The current sentiment toward prospects of a government default if the debt ceiling isn’t raised in time has many investors acting skittish. According to Filip De Mott from Business Insider, many investors are turning to gold ahead of the fallout of such an event which could take place in less than three weeks.
“Specific predictions about the market fallout from a US default are tricky as such an event is unprecedented,” he said. “But analysts say gold will still be viewed as a safe haven.”
That doesn’t mean precious metals investors need to hope for default. As analyst Christopher Louney and other economists have been saying for weeks, even a last-minute deal cut between Republicans and Democrats to raise the debt ceiling could be a boon for precious metals investors who act soon enough.
“Even assuming a deal is eventually reached, we wouldn’t disregard potential growing financial angst as the deadline approaches,” Louney said. “In such a scenario, gold looks like one of the few likely candidates that would bear the burden of resulting market flows.”
As a publication, we benefits when our readers purchase from either of our America First precious metals sponsors. They have been very busy in recent months and are expecting the next two weeks to see the flood gates opening as we approach either default or a last-minute deal to prevent default. This is why we’re encouraging people to contact Our Gold Guy for multiple purchase types of physical bullion or Genesis Gold Group for retirement account rollovers backed by physical gold and silver.
Investors are paying attention, not just to what’s happening in Washington DC but to the sentiment shifting across the world. Gold in particular seems to be of interest; even most central banks around the globe have been buying up as much of the precious metal as they can get over the last few months.
“I wouldn’t be surprised if we had a $100 move in gold prices,” Oanda Senior Market Analyst Edward Moya said. “It’s a little too tough to call, but obviously that is a historic moment that would unravel large parts of Wall Street.”
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Quincy Krosby, chief global strategist for LPL Financial, also expects that gold could climb in a default, saying the dollar could weaken and elevate it, given that the commodity is priced in dollars.
She also pointed to credit default swaps as a potential indicator, noting that they are correlated with gold. In April, one-year default swaps hit their highest since 2008.
“It would not be surprising to see gold as a safe haven refuge for those who are concerned that a default could, in fact, ensue,” Krosby said.
Even outside of a default scenario, gold has other tailwinds that potentially set it up for new record highs. Moya pointed to the continued buying of gold by global central banks, demand from China and India, and global rate easing, which helps gold because it’s a non-interest-bearing asset.
“So, it seems that there’s a good reason to anticipate gold could still outperform,” he said. “Will $2,100 happen this year? I think there’s still a good chance that that could happen, given the way the US economy — or the direction — the US economy is headed. So gold is probably going to do just fine, given all the risks that are on the table.”
Reach out to Our Gold Guy or Genesis to get started with protecting your life’s savings from government, central banks, and other nefarious forces.
Two Storms, One Harvest
Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.
What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.
Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.
This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.
Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.
Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.
The Fertilizer Clock Is Already Running
While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.
The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.
Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.
The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.
Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.
The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?
The System Has No Slack Left
The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.
Today’s supply chain challenges are tomorrow’s hunger crisis.
There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.
The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.
What Joseph Knew
Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.
Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.
Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.
Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.
None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.
Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.
