Lots of well informed speculation the past couple of days on what’s afoot behind the scenes with the economy, the dollar, gold moves, tariffs etc. I’ll post some links for interviews and try to summarize (hard…it’s far ranging).
There is a huge tranche of USG Treasury Bonds that are coming due for pay-out (or re-finance) in the next 3 months. The only buyer of UST lately has been the Fed printing money giving it to banks to buy them. Foreign governments no longer trust the USD investments after we have embargo’d Russian assets in this country to punish them.
The largest holders of UST debt instruments are foreign governments (China, UK, Netherlands, Saudi etc). The tariff threats are a bargaining device to allow USG to renegotiate the terms of repayment. Essentially we will nationalize all foreign government assets and issue to them a 50 year promissory note. They won’t like this, but will (may) agree to make tariffs go away.
A two tier dollar system will be put into place (Jim Willie has been saying this for years). One for use outside the US, one for inside. The dollar (both) will be significantly devalued. The internal one to reduce budget obligations and the external one to increase balance of trade. One or more of these will be backed at least partially with gold. To make that happen at any kind of realistic level gold must be revalued up at least 10X from what it is currently. This is what’s behind the international gold moves (yes, the London exchange is out of current standard trade configuration 100 oz bars…they do have very old stock 450 oz bars that are being re-refined to current trade spec…hence the delays).
There is a think tank plan that lays all this out, which has been published and is available to download (The Mir-A-Lago accords).
The DOGE reveals are truly an attempt to cut spending but also to show the public the extent of the cuts and re-structuring that is necessary. This to get people on-board with what will be coming…major inflation/devaluation of the dollar and the standard of living reduction that comes with that.
The ‘US Sovereign Wealth fund’ idea is a way to monetize assets (dead-unused wealth…people like me whose house is paid off for example) . Primarily focusing on USG assets like gold stocks (above and in the ground (Chocolate Mountain preserve)), Alaska oil fields etc. Monetize those and use them as financial instruments.
Efforts included are mechanisms (incentives) for foreigners to invest in US but just as in China not be able to remove profits from the US.
There’s much more to this…a couple hours of listening I will post links to.
These seem like ‘adult’ leadership initiatives. The changes will be painful for almost everyone though.
