Is the US Treasury Allowing China to Acquire Cheap Gold? Shocking Revelations!
EconomyFinancial CrisesRecent speculation suggests that the US Treasury may be allowing China to acquire cheap gold in exchange for support in the Treasury Market. This has raised concerns about the implications for the global economy and the stability of the US Treasury.
The Controversial Gold Flow
⚠️There are signs suggesting that the US Treasury is allowing China to acquire cheap gold in exchange for support in the Treasury Market.
📰The speculation is based on an article from Zero Hedge and a video by rafy Faber discussing US Treasury issuance.
📈Financial institutions, including the US, UK, and EU, have allowed the flow of gold from west to east due to their short-term thinking.
💰Gordon Brown's decision to sell half of the UK's gold in the late 90s had disastrous consequences and almost bankrupted the country.
🔍Yellen's frequent visits to China to ensure cooperation and gold supply.
US Treasury's Debt Issuance
💸US Treasury needs to issue $5 trillion of debt in 2024 to pay off maturing debt and cover the deficit.
📉If the US goes into a recession, the debt issuance could reach $7 trillion.
📉Chinese treasuries being sold each week may impact smooth operations.
📉The highest bid in the auction was 4.8, which was significantly higher than the WI issue of 4.6.
📉The bid to cover ratio for the auction was 2.2, indicating strong demand.
FAQ
What are the implications of the US Treasury allowing China to acquire cheap gold?
The implications are concerning as it raises questions about the US Treasury's motives and the impact on the global economy. It also brings into question the stability of the Treasury Market.
Why did Gordon Brown's decision to sell UK's gold have disastrous consequences?
Selling half of the UK's gold in the late 90s had disastrous consequences as it almost bankrupted the country and had long-term negative effects on the economy.
What is the potential impact of the US Treasury's debt issuance reaching $7 trillion in a recession?
If the US goes into a recession, the debt issuance could reach $7 trillion, which would have significant implications for the economy and the Treasury Market.
What does the bid to cover ratio indicate in a bond auction?
The bid to cover ratio indicates the demand for the bonds being auctioned. A ratio of 2.2 indicates strong demand, while a ratio of less than one would result in a failed auction.
Why are Yellen's frequent visits to China significant?
Yellen's frequent visits to China are significant as they suggest efforts to ensure cooperation and a stable supply of gold, which could have implications for the global gold market and the US Treasury.
Summary with Timestamps
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Recent speculation suggests that the US Treasury may be allowing China to acquire cheap gold in exchange for support in the Treasury Market. This has raised concerns about the implications for the global economy and the stability of the US Treasury.
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