Mar.14.24
Get some gold.
You’re gonna need it.
As much for an increase in asset value as it is to protect what you have.
Inflation is coming back.
Roaring back.
Central banks have decided.
Jerome Powell knows how screwed his situation is.
Congress keeps spending like a drunken sailor.
He has to continue to sell treasury bonds.
US treasuries are underwater but the banks still get liquidity from the BTFP.
That’s done.
More regional bank failures are coming.
SVB 2.0.
Commercial real estate is underwater.
Banks hold a lot of those assets on their books.
Especially regional ones.
That spells trouble.
What about Chinese real estate?
Their banks are also bankrupt.
The government is just backstopping everything.
Xi knows it can’t fail.
Yet it is coming.
Who owns those assets?
Banks globally.
What happens when they have to take a write down?
Not good.
What happens next?
QE infinity.
Powell already did it backing up SVB when it failed.
He’ll do it again when the next one does too.
The US debt load is too high.
For every extra amount that gets added, it means the interest payment skyrockets.
Right now a lot of US income tax is going to pay the interest.
The interest the US government owes to creditors for already existing debt.
Not new debt, but existing debt.
America has a MASSIVE financial problem.
That will come to a head in the next decade.
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