..for some time if you recall, this thread had been suggesting DXY's strength and correspondingly its negative effects on Gold.
..as everything has it time and place, the tables are turning- the time for precious metals has arrived and the dollar is in for a rough time (it is only the interest rate differential that is keeping it above).
..the US has no way to pay its debts other than through money creation/printing and that is what the CBDC is all about (not to spy at you).
..think of it this way, if you company continues to issue more shares through CR, it can continue to survive and muddle through despite not being able to become cashflow positive and it can continue to remain viable as long as its share holders are prepared to stump out more $$ to subscribe and keep it afloat
..and that is what the US is doing with its UST (Treasuries) auction, someone will have to buy them for them not to be in default, but they are losing their buyers slowly but surely (via antagonising their buyers) and for whomever prepared to buy them, we can only expect that the UST would have to offer a higher interest for what has now been perceived as a higher than prior sovereign risk; that high interest bill will cripple the US economy fiscally - so lower fiscal capacity amidst still higher interest rate would reduce Govt contribution to GDP with the private sector stagnating.
...a perfect storm for a much lower dollar in the years ahead. Thus, a fertile ground for precious metals in the coming years.
In 2011, Fed Chairman Bernanke told Congress that QE was not debt monetization because the balance sheet would have no permanent increase. It's now about 3x higher than when he said that, and 8x higher than the pre-crisis level. So by his definition, it was debt monetization.
