Unfortunately capital markets operates a lot more complicated that what goldbugs like to ask about debt repayment. The rolling over of bonds mechanism ensures the supply of iou paper is continuous and seamless because this is the deepest market in the world. I’ve never traded bonds so I’m only taking what I read.
My understanding is that provided the US institutions of which its military continue to dominates globally, USD remains the reserve ccy as well as global transactional medium of exchange.
No one seems able to answer how IR can normalize to levels we were used to pre-GFC Feds QT the rates jack had that optimum point in the midst of Trump trade war so I would argue it was working against goldbugs expectation as they have been reminding us constantly. A lot can be learned from Japan as they are totally dependent on QE. US got hooked on it and trying to fight it off and we are thinking this is a new party drug worth sampling tobgetvthst next level euphoria.
From a gold stock investor, all good news today as those jobless figures came out. Immediately wobbly gold sector found a new bounce likewise general equity markets. I’m sure BH dump to join the equity yield party.
