The U.S. Treasury Department has expanded its long-dated bond repurchase operations, sparking market discussions about liquidity and the dollar’s purchasing power. Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad,” has sharply criticized the move, calling it “an indirect form of quantitative easing (QE).” He condemned the U.S. government for massively printing “fake money (fiat currency)” and urged investors to shift toward scarce assets such as gold, silver, and Bitcoin, arguing that this is the only way to preserve the value of assets amid the United States’ looming debt crisis.
Ministry of Finance: This is not quantitative easing
The so-called “quantitative easing (QE)” refers to central banks expanding the money supply by purchasing financial assets, usually with the aim of lowering long-term interest rates and stimulating the economy. However, U.S. authorities have a completely different interpretation of this latest operation.
Faced with a surge in long-term U.S. Treasury yields, with the 30-year Treasury yield once reaching a nearly 20-year high, the U.S. Treasury Department announced that starting September 9, it will raise the maximum limit for each buyback operation of U.S. Treasuries with maturities from 10 to 30 years—from the original $2 billion to at least $4 billion.
Treasury officials emphasized that expanding the buybacks is purely to address liquidity issues in the debt market, not an official round of quantitative easing. After all, only the Federal Reserve (Fed) has the authority to expand the money base.
Market observers also generally view this as a form of “Operation Twist” (meaning the central bank sells short-term debt and buys long-term debt to bring down long-end interest rates as a fine-tuning measure), aimed at easing the heavy pressure on the long end of the yield curve.
Although authorities tried to play down the impact, the U.S. dollar index still weakened immediately after the news was released, dipping toward a nearly three-month low.
“Smart money” rushes into gold, silver, and Bitcoin
In response to the government’s explanations, Robert Kiyosaki clearly doesn’t buy it. He believes that no matter how the government describes this move, expanding the buyback of public debt ultimately means more U.S. dollar liquidity entering the market—at its core, it’s creating more “fake banknotes” out of thin air. He also warns that when the U.S. dollar index, which gauges the performance of the dollar against major currencies, turns downward, that is exactly the signal the market worries inflation is heating up.
Robert Kiyosaki warns that if inflation continues to erode purchasing power, the first to be affected will be depositors holding cash or traditional assets. Investors with “financial intelligence,” however, will understand that during the process of currency purchasing power being eroded, they should allocate funds to hard assets that can appreciate with inflation, including gold, silver, Bitcoin, and quality real estate—thereby accumulating wealth.
Recently, amid a weaker U.S. dollar and a warming trend in trades that hedge against currency depreciation, gold and Bitcoin are also receiving attention from new buyers.
Image source: X/@theRealKiyosaki
Bullish on “hard assets” in the long run
Robert Kiyosaki has long argued that investors should move their money out of fiat currencies such as the U.S. dollar and into “hard assets” with limited supply and scarcity. Gold, silver, and Bitcoin are precisely his core allocations.
As the total amount of U.S. national debt surpasses $40 trillion, market concerns about U.S. fiscal deficits and the pressure of government debt have been intensifying. Robert Kiyosaki has also called on investors again to reduce reliance on dollar assets and shift some funds into scarce assets that can maintain purchasing power.
However, from the market’s perspective, whether the Treasury Department’s expansion of long-term debt buybacks is merely a short-term liquidity adjustment, or instead reflects that U.S. fiscal and debt-market pressures are further rising, still needs to be verified by subsequent data and policy directions.
For investors, what truly deserves attention is not just “whether there’s more dollars,” but whether U.S. long-term Treasury yields, the dollar’s trend, and inflation expectations are jointly changing the next direction of capital allocation.
This article is reprinted with authorization from: (Block City)
Original title: (Buy gold, silver, and Bitcoin! Robert Kiyosaki: the U.S. expands buybacks of long-term debt is a “backdoor to printing fake banknotes”)
Original author: Block Sis Mel
『Buy gold and Bitcoin! Rich Dad: the U.S. expands bond buybacks of long-term notes is a “backdoor to printing fake banknotes”』The article was first published on 『Crypto City』