The Fed’s not a buyer of extra US debt right now, nor expanding its balance sheet, so get ready for massive money printing, a fast rising gold price, and…
Hyperinflation of the US dollar as it enters its crack-up boom.
In respect to the dollar?
I think so.
When it happens, that is.
Well, the dollar has already lost what, 97% of its value?
The hyperinflation already happened, and now, all that is missing is the final 3%, which would be the crack-up boom.
Additionally, all that selling of treasuries, which really are nothing more than dollars, for dollars, would mean that a flood of US dollars is coming out of the woodwork, and all of those dollars would be looking for a place to go into real stuff.
Said differently, the there could be a massive, worldwide shopping spree – a real “shop ’til the dollar drops” moment, no pun intended, and yes, I am speaking both figuratively and literally.
Some things to consider, in no particular order but loosely resembling a chain-reaction:
- China dumps US treasuries.
- The Fed ain’t a buyer right now.
- US govt not prepared for an extra $1 trillion in debt THIS YEAR!
- Stevie’s ESF just prints the money to buy the bonds
- Bond prices collapse with all the selling.
- Interest rates go through the roof.
- Pension and retirement funds collapse.
- Etc, etc, etc
Well, even if China is notoriously “secretive” about its official gold holdings, the nation has still reported that it increased its gold reserves for a 5th month in a row.
Plus, even if the World Gold Council is to gold as the Fed apologists are to the US dollar, well, this:
China (and Russia for that matter) has been a buyer of gold for at least the last ten years.
Furthermore, central banks around the world bought more gold last year than they have bought in the last fifty years.
In other words, if China uses the nuclear option and sells a trillion bucks worth of worthless United States’ government debt, you don’t think that physical gold would literally vanish from the marketplace?
And what about silver?
What brings me to say China is set to use the nuclear option?
Well, this from CNBC:
So it’s not ‘Ol Half Dollar tryin’ to get all click-baity.
That’s what the trolls say as they have no argument.
And by saying, $1,000,000,000,000, I’m being generous.
Because according to our own government, China has over a trillion dollars of US debt:
So is this a total game changer?
First, understand the game.
And what happens to it.
When it changes.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.