#usdollarfallstothreemonthlow
Higher bond yields are only a headwind for metals if US
debt actually remains desirable. Who would want it anymore, rationally?
We're more than 40T in debt already and Bessent said yesterday that we’re going
to
“grow” (i.e. inflate) our way out of it. It's especially less desirable since the US demonstrated via Russia that we’re more than willing to freeze the funds of those we don’t like. That fundamental trust has been rugged.
Gold is becoming a larger international reserve than the dollar already. Our biggest debt holders are trying to offload it and first the treasury sweet talks Japan with swap lines and now Bessent has committed to buying our own debt for at least three months. A total house of cards, in my opinion.
The treasury will buy what they've set out to through November, maybe more afterward, and the Fed will do yield curve control eventually -- but they can't soak up the whole market. Yields will likely continue rising alongside gold with inflation just like the 1970s, only this time with a 122% debt-to-GDP ratio.
Yields rising is only bad for gold if US debt is seen as a safe haven. It can't be taken seriously anymore. The market just hasn't realized or accepted it yet -- or maybe it has finally started to sink in with Bessent's buyback announcement.
The international financial system is restructuring around gold before our eyes. The future is multipolar and increasingly illiberal. The neo-Leviathan has risen. For those unfamiliar with the work of Thomas Hobbes, it may be the most relevant treatise of political philosophy for the 21st century.
Act accordingly, then do nothing
🧘♂️🥇🥈
For the good of the order
🫡
$UP
$ID
$IO
Higher bond yields are only a headwind for metals if US
debt actually remains desirable. Who would want it anymore, rationally?
We're more than 40T in debt already and Bessent said yesterday that we’re going
to
“grow” (i.e. inflate) our way out of it. It's especially less desirable since the US demonstrated via Russia that we’re more than willing to freeze the funds of those we don’t like. That fundamental trust has been rugged.
Gold is becoming a larger international reserve than the dollar already. Our biggest debt holders are trying to offload it and first the treasury sweet talks Japan with swap lines and now Bessent has committed to buying our own debt for at least three months. A total house of cards, in my opinion.
The treasury will buy what they've set out to through November, maybe more afterward, and the Fed will do yield curve control eventually -- but they can't soak up the whole market. Yields will likely continue rising alongside gold with inflation just like the 1970s, only this time with a 122% debt-to-GDP ratio.
Yields rising is only bad for gold if US debt is seen as a safe haven. It can't be taken seriously anymore. The market just hasn't realized or accepted it yet -- or maybe it has finally started to sink in with Bessent's buyback announcement.
The international financial system is restructuring around gold before our eyes. The future is multipolar and increasingly illiberal. The neo-Leviathan has risen. For those unfamiliar with the work of Thomas Hobbes, it may be the most relevant treatise of political philosophy for the 21st century.
Act accordingly, then do nothing
🧘♂️🥇🥈
For the good of the order
🫡
$UP
$ID
$IO