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The institutions that create money are increasing their gold holdings. That doesn’t guarantee gold will rise. But it’s worth asking why they want to own more of it while debt and inflation remain a problem. - Higher rates make government debt more expensive to refinance. - Larger interest bills...

15,960 görüntüleme • 8 gün önce •via X (Twitter)

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Felix Prehn 🐶 profil fotoğrafı
Felix Prehn 🐶8 gün önce

I made a full report on why raising rates during an oil shock can hurt the economy and how inflation reaches your savings. Read it free here:

Hrvy Mighty M. profil fotoğrafı
Hrvy Mighty M.7 gün önce

Dear Felix and Winston, you should switch to crypto for a time at least..not the time for gold now 😅👋

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Ray Dalio explains how financial repression begins once the debt problem gets out of control. It starts with a simple reality: One man’s debt is another man’s asset. Government debt is not just a liability for the government. It is also the asset sitting inside pension funds, banks, insurance companies, foreign reserves and portfolios. But here is the problem. If those bonds do not offer a good real return after inflation, investors stop wanting them. So yields rise. And when yields rise, the government’s debt burden becomes even harder to manage. That is the trap. At some point, the system cannot tolerate true market-priced interest rates anymore. So policy steps in. The Treasury keeps issuing debt. The Fed is pressured to help absorb it or suppress yields. Inflation is allowed to run above bond returns. Taxes on capital and wealth rise. And savers are slowly paid back in money that buys less. This is financial repression. It does not look like default on paper. But in real purchasing power terms, it is a slow default on savers. That is why Dalio keeps pointing toward gold. Because when bonds stop protecting real wealth, capital starts looking for assets outside the paper promise system. The core message is simple: The government needs cheap funding. Investors need real returns. Both cannot win at the same time. And historically, when the debt burden becomes too large, policy chooses the debtor over the saver.

Macro Liquidity by Sunil Reddy

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🚨 WARNING: SOMETHING TERRIBLE WILL HAPPEN ON MONDAY!! The Fed just hit the panic button. Next week, they'll inject BILLIONS into the economy to prevent a market collapse. When markets open on Monday, this won't be “just a dip.” If you hold any assets now, you MUST read this: The Fed is no longer choosing between a strong economy and stable inflation. It is choosing which problem to make worse. If the Fed hikes rates, borrowing costs will surge. Long-term Treasury yields will rise. Economic growth will slow. Debt servicing costs will explode. And with $40T in debt, the U.S. financial system will absorb an enormous amount of pressure. But if the Fed pauses or cuts rates, the problem moves somewhere else. Inflation will accelerate. Financial conditions will loosen. Inflation expectations will rise. And the Fed will be forced back into aggressive tightening. This creates a trap with NO clean exit. Higher rates → Higher yields → Slower growth → Bigger debt burden Lower rates → Higher inflation → More tightening → Higher yields This is no longer a normal rate cycle. The Fed is trapped between INFLATION and DEBT. And this is exactly where the Bank of Japan is currently sitting. Now it’s the Fed’s turn. The market can ignore this for as long as liquidity remains abundant. But once long-term yields start breaking higher while economic growth is slowing, the pressure will spread across every major asset class. Stocks will dump. Bonds will dump. Gold and Silver will dump. Bitcoin will dump even harder. Because when liquidity disappears, investors do not sell what they WANT. They sell what they CAN. And that is where the real chain reaction begins. Higher yields → Tighter liquidity → Falling risk assets → Forced selling The Fed will eventually be forced to choose between fighting inflation and protecting the debt market. And whichever path it chooses will create another problem somewhere else. This is the setup most people are completely ignoring. I have spent over 10 years trading markets and studying liquidity, rates, and macro cycles. I warned you before. And I'll warn you again soon. If you want to survive the 2026-2027 cycle, follow and turn notifications on. A lot of people will wish they paid attention earlier.

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Discover

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More sophistry and revisionist history from Mike Green. He claims: "Money exists to cancel debt. That's all it does. That's what it says on your dollar bill. This is legal tender for settlement of debts both public and private. It continues to function in that manner. It never stopped functioning in that manner. That is what it does. That's what it's supposed to do. It's not meant to store value. It's not meant to retain its value. It doesn't say that on there. There's no statement on your dollar bill that says this is good for three cowhides, right? It says this is for the settlement of debts, public and private." -------------------- His statements would only be sensible to someone who thinks money has been fiat for all of time. However, his claims are ahistorical (a word Green likes to use himself). Paper money was introduced as a representation of a specific amount of precious metal. Dollar bills once stated exactly how much silver or gold they were redeemable for. When the Coinage Act of 1792 was passed (and all the way up to 1971), you would have been laughed out of the room if you stated that "all money does is cancel debt." In fact, even after 1971, you would have been laughed at for claiming this, because Nixon's suspension of gold convertibility was "temporary," of course. When money was a specific representation of gold and silver, it DID store value. Of course paper money never stated that it can be exchanged for three cowhides. But when dollars stated exactly how much precious metal they were redeemable for, citizens KNEW that the underlying precious metal stored value over time. This is why the fiat rug-pull happened over many decades rather than overnight (central banking --> gold seizure --> "temporary" removal of gold convertibility --> fiat money). The best defense of Mike Green's claims are that they apply to the nature of fiat money TODAY. But Green leaves out that, historically (while competing monetary theories did exist), people correctly treated gold/silver-backed money as a store of value. Money DID store value. Everyone knew this to be true, and wanted it to be true (except banks and governments).

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