Dear Reader,
A nonprofit law firm just filed the FOURTH lawsuit against Trump's tariffs. This one targets the 50% duties on Canadian goods. The Liberty Justice Center went to the Court of International Trade yesterday, arguing Trump pulled a dormant 1930 statute off the shelf and used it to impose sweeping taxes that Congress never authorized.
Four lawsuits. Same argument. Your money is in the middle of it.
Inside today's issue:
- The 1930 Law Nobody Voted For: Congress wrote it during the Depression. Trump used it to tax your groceries. Now the courts are trying to undo it. Again.
- Gold at $4,124 and Falling: The trade war is pushing oil higher, yields higher, and gold lower. That is temporary. The debt is not.
- The $40 Trillion Scoreboard: America closed fiscal 2026 with $1.99 trillion in new debt. The courts cannot fix that. No tariff can either.
- Larry Benedict on Oil Skimming: Larry Benedict just released a new presentation on a strategy called "Oil Skimming." Worth a look. (Brownstone Research)
THE 1930 LAW NOBODY VOTED FOR
Here is what the mainstream press is covering: Did Trump have the legal authority to impose 50% tariffs on Canada using Section 338 of the Tariff Act of 1930?
Here is what they are not measuring: whether the president wins or loses in court, you are already paying the price.
Let me give you the numbers. Trump slapped 50% tariffs on Canadian dairy, furniture, clothing, and wine after trade talks broke down in August. His legal basis was a law written in 1930 when Herbert Hoover was president and the Great Depression was just starting. The same law Congress passed to protect American industries. The same law that helped turn a recession into a decade-long catastrophe.
The Supreme Court already struck down his tariffs once this year. That was in February, using a different statute called IEEPA. A trade court got another one in May. Now a fourth challenge is in front of a judge. The Liberty Justice Center, the same group that killed the last set, filed on behalf of a U.S. food importer called Gellert Global Group.
Their argument is simple: "No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs." That is Liberty Justice Center CEO Sara Albrecht, quoted directly in the filing submitted Tuesday.
"No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans."
Here is what I think. This is not a trade debate. This is a fight over who controls the money supply of the most powerful nation on earth. Courts, Congress, importers, foreign governments. They are all fighting over the same lever.
And that lever is already broken.
The United States closed fiscal year 2026 with a $1.99 trillion deficit. Not billion. Trillion. Public debt hit $40.2 trillion at the end of September. Interest on that debt is now one of the top three expenses in the federal budget, running alongside Social Security and Medicare. No tariff policy saves you from that math.
Meanwhile, gold closed Monday at $4,123. Down from its October high near $4,300, but up from $2,640 at the start of 2025. That is a 56% gain in less than two years. In the same period, your savings account paid you maybe 4% in total. The market knows who wins when governments fight over who gets to tax you.
Here is the cycle call: this is the Smoot-Hawley playbook. 1930. Congress passes massive tariff legislation to protect American industries. Trading partners retaliate. Global trade collapses. A recession becomes a Depression. Governments never learn. They just change the statute number.
Whether Trump's tariffs survive this lawsuit or not, the damage to dollar credibility is already priced in. But before I tell you exactly how I'm thinking about this from a hard asset perspective...
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THE PLAY
...consider what four rounds of litigation actually prove.
The courts can strike down tariffs. They cannot strike down inflation. They cannot strike down a $40 trillion debt load. They cannot strike down an interest rate that is already consuming more federal revenue than the entire defense budget did fifteen years ago.
I have been buying gold since it was $300 an ounce. I watched governments argue about trade policy for fifty years. The argument always ends the same way: more money printed, more purchasing power lost, and the people who held real assets came out ahead.
Gold at $4,123 is not a bubble. It is a receipt. It is what $40 trillion in debt looks like when priced in something no judge can strike down.
Silver is at $57. Still cheap relative to gold. The gold-silver ratio is 71.7 right now. Historically it runs closer to 50. One of these metals is behind.
The lawyers can fight over 1930 statutes. You should be stacking the asset class that predates every tariff, every court ruling, and every central bank on earth.
Robert Kiyosaki
Author, Rich Dad Poor Dad
P.S. The governments of Saudi Arabia and Kuwait once hired our friend Larry Benedict. So did the banks that hold money for Exxon, Chevron, and Shell. For decades, he helped the most powerful players in oil grow their money. Now he's revealing his top oil strategy, adapted so ordinary folks can use it too. Watch the free presentation here.