“Slowly At First – Then All At Once”
This week’s Treasury move to double the amount of long bonds being bought is already losing steam and Bessent is jawboning that the dollar amount will be greater than $4 billion a pop. The announcement confirmed what most PM investors and many others already knew. The dollar is facing increased rates of debasement, which means Gold & Silver will keep rising. When it becomes clear that the debasement is running so fast that the system is about to collapse, the Treasury and FED, will have no choice but to rollout a Gold revaluation. I now don’t think they will be able to wait until after the midterms. Possibly as soon as Labor Day weekend?
Sure, I love Hemingway’s quote, but not sure the gold standard would be put back in place. Like i tell people. US defaults (like in the 14th amendment, all debts are declared null and void), dollar tanks, or we go to gold standard. Probably some other choices, but not sure what they are. Happy to listen to smarter people in the room….but if ai reaches sentient state of thought, I don’t think it matters, we’ll all be dead in 50 years.
Gold revaluation, ie much higher “official” price so they can use the newly created dollars to buy back some of the debt. Going back to a Gold standard while possible in the future is unlikely at this time.