..and I might add that China sees this well in advance, so it has embarked on a progressive selling down of its USD reserves by swapping with Gold, and even loaning USD to the developing world in need of the dollar and requiring repayment in yuan, collaterised against their ports, infrastructure assets etc.
..it is clear that China and US are parting ways despite all the fronts to normalise relations; the US decision to use economic coercion as a weapon has turned increasing attention to dedollarisation efforts and this is why gold and silver have become the ultimate beneficiaries.
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I believe, Fed is closer to starting debt monetization than most anticipate. Hiking rates allowed the US government to borrow funds and finance the budget deficit. However, US government needs more and more money, hence solution is starting the printing press and monetizing debt. Cutting rates does not solve the situation with the ever increasing US budget deficit. Once printing press is started, there will be no need to cut rates, at least immediately. The moment they start printing, dollar will enter into a bear market. Starting the printing press and cutting rates simultaneously could just bring an end the Dollar’s hegemony…
