Gold overtakes U.S. Treasuries as the largest foreign reserve asset - Comments

The federal government is. We'll see if the founders concept of a union of states is worth as much as it was proclaimed to be.

Why? Because gold bugs caused a gold bubble?

It’s not a self decapitation exactly. I think Trump, his family, his corporate donors, and other friends are all willing to sacrifice everyone else - including the lead America had - to make themselves rich and powerful. Every single decision to spend - defense, ICE contracts, AI, approvals of anticompetitive acquisitions, changes to regulations, etc - is making that circle richer at our expense.

They don’t care if American supremacy is lost or if the dollar crashes or if the national debt becomes a crisis. As long as they have their wealth. The public is being decapitated, not them.

America just experienced a leveraged buy out.

Not really. It has more to do with gold is now worth almost 3x what it was 2 years ago.

And before you get too excited, this "news" from the World Gold Council. A consortium of gold mining corporations. Clearly it's a pump article "have you bought gold yet? everyone else is! why not you!?!?"

It's a choice that started in 1971. [1] People always act like every single geopolitical thing is the end of the world when it runs against their political biases, but in reality this nonsense will end soon enough and then we'll be onto the next nonsense soon enough.

It's really just never-ending nonsense because there seems to be this need for there always to be some 'current big thing', and in the absence of such we inevitably create it. Probably the nature of bureaucracy paired with a military industrial complex. There's always a need to blow things up somewhere to keep the gears turning and the dollars flowing.

Anyhow, the point of this is that countries respond far more slowly to geopolitical stuff than people do. They're certainly not going to just dump all their dollar reserves because of a single misguided war or even misguided president. In a couple of years he'll be gone, and soon enough we'll be in a brand new self destructive proxy war with China or whatever. It's just the nature of the world, or at least the US, and countries are well aware of this, dramatic public rhetoric to the contrary notwithstanding.

[1] - https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_sho...

[1] - https://wtfhappenedin1971.com/

You're seeing the result of something that's been decades in the making. You can see a simple table of dollar reserves here. [1] They've been consistently falling year over year for the past 27 years. And it's not like 1999 was anything particular. Rather the uptake leading up to 1999 as a peak was a result of shenanigans that happened in 1971 [2]. That's when the USD became completely unbacked by anything, enabling the government to start going arbitrarily far into debt. That had short to mid-term positive impacts and long-term catastrophic ones, as is the typical strategy in modern times.

People always exaggerate the impact of geopolitical things, because it feels like the biggest thing ever, especially when you're relatively young. But in reality we're always onto nonsense after nonsense. Countries have the wisdom and view to appreciate this, and so respond to geopolitical stuff (in action, not rhetoric) far more gradually than people do. They're certainly not going to just dump all their dollar reserves because of a single misguided war or even misguided president, or they'd have been gone long ago.

[1] - https://en.wikipedia.org/wiki/Reserve_currency#Global_curren...

[2] - https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_sho...

[2] - https://wtfhappenedin1971.com/

True. In that sense the voters have self decapitated. I can’t understand how the Trump administration still has support from 40% of the country (per polls). I could understand voting for him due to some issue a voter has strong feelings about. But now we have seen it all play out and it’s a disaster leading to national ruin. And there is no talk of impeachment, trials, and accountability for everyone in his circle. So I guess that 40% does choose to self decapitate.

Gold has always been stable, because it is physically limited.

It is the fiat currency debasement via unlimited money printing that makes the gold chart go up.

Imagine being in Zimbabwe or Weimar Germany and watching your stock portfolio and gold going up...

Too tired to write a novel like I usually would here, but we control the printing and, in large part, the distribution of USD. We don't control anything about gold. Then the USD was king, it entailed tremendous power and control in many ways beyond the obvious like the ability to try to kick people out of the 'global' economy. This is the not-so-secret purpose behind BRICS and dates back to issues starting in 1971.

just like stock trader, you can get rich from going long, you also can get rich by shorting the economy (selling short).

this is what trump is doing: selling America short

basically make decisions that make no sense but benefit you financially. Sample. you run a printing business. you dont own it just run it. you sell your main printer and assign a performance bonus to your self. next month your business is closed because you dont have equipment to print, but you also have your bonus in pocket.

It does, it's textbook "banana republic". Dictator and close circles enrich themselves, everyone else gets poorer.

US voters were so worried that South America would come to them, that they have become the worst of South America.

Look at post-USSR Russia

elections have consequences...

> someone too stupid to understand

That's only true if he's actually "your guy". There's an alternative where it's not stupidity that I think more people should be mulling over.

[dead]

And yet the current administration is fixated with trade balance (which conveniently ignores the most important US export that's not accounted: services).

Look at them countries sending food, cars, machinery for pieces of paper. They taking advantage of us!

US will have to refinance $ 10T of debt next year. That's a gargantuan amount of money and I see no scenario in which this won't have quite higher yields than the expiring one, remnant of the low rate decade.

With foreigners and hedge funds less prone to buy US debt right now it's going to be quite interesting to see what will happen.

I think pinning this on one guy is a gross oversimplification driven by personal dislike for that guy. In my opinion larger forces are at play. I don't mean it in a conspiratorial way; simply put, the structure of global trade, economy, military power, etc. have shifted to such a degree, that this process has become inevitable.

People have been convinced of that my entire life, and I'm old now.

It only accelerated what was already happening. But yes, Trump accelerated it by a lot. He's a madman.

Be careful what you wish for.

The federal government is. We'll see if the founders concept of a union of states is worth as much as it was proclaimed to be.

Why? Because gold bugs caused a gold bubble?

It’s not a self decapitation exactly. I think Trump, his family, his corporate donors, and other friends are all willing to sacrifice everyone else - including the lead America had - to make themselves rich and powerful. Every single decision to spend - defense, ICE contracts, AI, approvals of anticompetitive acquisitions, changes to regulations, etc - is making that circle richer at our expense.

They don’t care if American supremacy is lost or if the dollar crashes or if the national debt becomes a crisis. As long as they have their wealth. The public is being decapitated, not them.

America just experienced a leveraged buy out.

Not really. It has more to do with gold is now worth almost 3x what it was 2 years ago.

And before you get too excited, this "news" from the World Gold Council. A consortium of gold mining corporations. Clearly it's a pump article "have you bought gold yet? everyone else is! why not you!?!?"

It's a choice that started in 1971. [1] People always act like every single geopolitical thing is the end of the world when it runs against their political biases, but in reality this nonsense will end soon enough and then we'll be onto the next nonsense soon enough.

It's really just never-ending nonsense because there seems to be this need for there always to be some 'current big thing', and in the absence of such we inevitably create it. Probably the nature of bureaucracy paired with a military industrial complex. There's always a need to blow things up somewhere to keep the gears turning and the dollars flowing.

Anyhow, the point of this is that countries respond far more slowly to geopolitical stuff than people do. They're certainly not going to just dump all their dollar reserves because of a single misguided war or even misguided president. In a couple of years he'll be gone, and soon enough we'll be in a brand new self destructive proxy war with China or whatever. It's just the nature of the world, or at least the US, and countries are well aware of this, dramatic public rhetoric to the contrary notwithstanding.

[1] - https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_sho...

[1] - https://wtfhappenedin1971.com/

You're seeing the result of something that's been decades in the making. You can see a simple table of dollar reserves here. [1] They've been consistently falling year over year for the past 27 years. And it's not like 1999 was anything particular. Rather the uptake leading up to 1999 as a peak was a result of shenanigans that happened in 1971 [2]. That's when the USD became completely unbacked by anything, enabling the government to start going arbitrarily far into debt. That had short to mid-term positive impacts and long-term catastrophic ones, as is the typical strategy in modern times.

People always exaggerate the impact of geopolitical things, because it feels like the biggest thing ever, especially when you're relatively young. But in reality we're always onto nonsense after nonsense. Countries have the wisdom and view to appreciate this, and so respond to geopolitical stuff (in action, not rhetoric) far more gradually than people do. They're certainly not going to just dump all their dollar reserves because of a single misguided war or even misguided president, or they'd have been gone long ago.

[1] - https://en.wikipedia.org/wiki/Reserve_currency#Global_curren...

[2] - https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_sho...

[2] - https://wtfhappenedin1971.com/

True. In that sense the voters have self decapitated. I can’t understand how the Trump administration still has support from 40% of the country (per polls). I could understand voting for him due to some issue a voter has strong feelings about. But now we have seen it all play out and it’s a disaster leading to national ruin. And there is no talk of impeachment, trials, and accountability for everyone in his circle. So I guess that 40% does choose to self decapitate.

Gold has always been stable, because it is physically limited.

It is the fiat currency debasement via unlimited money printing that makes the gold chart go up.

Imagine being in Zimbabwe or Weimar Germany and watching your stock portfolio and gold going up...

Too tired to write a novel like I usually would here, but we control the printing and, in large part, the distribution of USD. We don't control anything about gold. Then the USD was king, it entailed tremendous power and control in many ways beyond the obvious like the ability to try to kick people out of the 'global' economy. This is the not-so-secret purpose behind BRICS and dates back to issues starting in 1971.

just like stock trader, you can get rich from going long, you also can get rich by shorting the economy (selling short).

this is what trump is doing: selling America short

basically make decisions that make no sense but benefit you financially. Sample. you run a printing business. you dont own it just run it. you sell your main printer and assign a performance bonus to your self. next month your business is closed because you dont have equipment to print, but you also have your bonus in pocket.

It does, it's textbook "banana republic". Dictator and close circles enrich themselves, everyone else gets poorer.

US voters were so worried that South America would come to them, that they have become the worst of South America.

Look at post-USSR Russia

elections have consequences...

> someone too stupid to understand

That's only true if he's actually "your guy". There's an alternative where it's not stupidity that I think more people should be mulling over.

[dead]

And yet the current administration is fixated with trade balance (which conveniently ignores the most important US export that's not accounted: services).

Look at them countries sending food, cars, machinery for pieces of paper. They taking advantage of us!

US will have to refinance $ 10T of debt next year. That's a gargantuan amount of money and I see no scenario in which this won't have quite higher yields than the expiring one, remnant of the low rate decade.

With foreigners and hedge funds less prone to buy US debt right now it's going to be quite interesting to see what will happen.

I think pinning this on one guy is a gross oversimplification driven by personal dislike for that guy. In my opinion larger forces are at play. I don't mean it in a conspiratorial way; simply put, the structure of global trade, economy, military power, etc. have shifted to such a degree, that this process has become inevitable.

People have been convinced of that my entire life, and I'm old now.

It only accelerated what was already happening. But yes, Trump accelerated it by a lot. He's a madman.

Be careful what you wish for.