Read the fine print with us, because Thompson did. In the space of SIX DAYS the US Treasury doubled how often it buys back long bonds (two operations a quarter to four), lifted total buyback capacity from $30 billion to $38 billion, then doubled the minimum size per operation from $2 billion to at least $4 billion (0:43). All this with the 30-year at 5.34%, its highest yield in 20 years (2:03). And the Fed? The New York Fed announced it would buy NOTHING between August 14 and September 14 (2:46).
Thompson’s chain of logic: the Treasury can lean on the long end, but it can’t do it forever. “The next logical step is fuller yield curve control. And to get full yield curve control, you need the Fed to do it” (5:31). Which means printed money buying bonds. Which is QE by any name. Gold jumping $100 in 90 minutes says the market did that math in real time (7:21).
He flags it himself: “This, of course, is just speculation… it’s what the market thinks is likely to happen” (8:22). But his mid-September marker comes with a punchline: if the Fed pivots, “the gold price will go ballistic, in my opinion” (9:03). This commentary was published by Clive Thompson’s channel; embedded here with attribution, SilverTrade didn’t conduct it.
Wednesday afternoon the gold price jumped over $100 in 90 minutes.
The rise came immediately after the US Treasury released an announcement on its website.
In the space of six days Treasury has doubled how often it buys long bonds, and then doubled how much it can buy each time.
The Fed is standing still.
The Federal Reserve is not riding to the rescue.
On 13 August, the New York Fed announced it would buy nothing at all between 14 August and 14 September.
The logical next step is fuller yield curve control, and that requires the Fed.
Clive Thompson explains that Gold is anticipating what the Fed will do.
September 15th Could be THE DAY to watch gold:
