Episode 15 of The SilverTrade Insider: The MATH Behind $16,000 GOLD!
The US budget deficit is projected to be nearly $2 TRILLION this year.
Approximately $11 TRILLION in marketable U.S. Treasury securities are scheduled to mature (and thus need to be refinanced/rolled over) within the next 12 months (roughly July 2026–July 2027).
🌊A $13 TRILLION TSUNAMI IS APPROACHING THE FED & US TREASURY⚠️
Meanwhile, the Iran War is escalating with NO END IN SIGHT, making a global recession this fall increasingly likely to occur. A major recession would increase the projected US annual deficit from $2 Trillion closer to $5 TRILLION.
Investors are FINALLY starting to wake up and smell the PANIC, as Treasury bonds are selling off HARD today.
🌩️I’m not sure who needs to hear this, but treasury bonds crashing (yields exploding) is NOT bearish for gold & silver long term.
It pulls forward the necessity for Yield Curve Control by The Fed (targeted QE by another name) which is MASSIVELY INFLATIONARY. (Craig Hemke just discussed this with us on the STI Tuesday:
Who is going to buy Treasury bonds & continue financing $40 TRILLION of US debt, & $2 TRILLION annual deficits?
China? Xi is DUMPING T-bonds, & HOARDING Gold & Silver like they’re the only 2 life-rafts left on the Titanic. China’s net T-bond holdings declined by $74 BILLION over the past year.
Russia? In the words of Kevin McCallister, “I don’t think so!”
The ONLY reason that Russia isn’t dumping T-bonds faster than China is that its holdings of US Treasuries are already essentially ZERO.
🕌The Gulf States? Hormuz is blocked, Iran is attacking their refineries & infrastructure – they won’t have any trade surpluses to park into Treasuries any time soon.
🕋The Socialist Islamic wannabe empire known as the EU?
Perhaps the only potential buyers in sight for the US, but they now hate America & Trump perhaps even more than God Himself. Don’t expect the EU to meaningfully prop up $2T + in deficits, much less the $11 TRILLION in Treasuries maturing within the next 12 months that will need to be rolled over.
🇮🇳India? The Rupee is also nearly in a free-fall collapse, Modi is SELLING DOLLARS to prop up the Rupee. TIC data shows India has DUMPED $54 BILLION of US T-bonds over the past year -23% of total holdings.
🇧🇷Brazil? Lula dumped $43 BILLION of US T-bonds over the past year, per TIC data- 20% of total holdings.
The Fed will be forced to become the buyer of last resort or the US bond market will COLLAPSE.
We are nearing a point in time where The Fed will be forced to choose to support the currency (actually fight inflation) or the bond market.
There really is no choice, as supporting the currency by drastically raising rates will EXPONENTIALLY worsen the US fiscal debt crisis…& create a MASSIVE SOVEREIGN DEBT CRISIS.
The rats are backed into a corner. We expect them to ultimately make the same choice that they have made with each exponentially bigger crisis over the past few decades: RUN THE PRINTER.
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