But I think what's even more significant is a long overdue realization that the US cannot possibly repay its debt honestly [music] that the national debt which is now 38 trillion and of course that's just the bonded debt not with all the unfunded liabilities but the treasuries that a lot of foreign central banks own there's no way the US government can repay that debt in money that isn't dramatically debased meaning that the US government will not be able to raise sufficient tax revenue to make


good on its obligations. The Fed is going to have to print the money. And also, we have so much debt now that we can't even afford to pay a rate of interest that would be commensurate to the loss of purchasing power that you might experience holding US debt to maturity. And you know, that's why Donald Trump is beating up the Fed to cut rates. In fact, that's why the Fed is cutting rates even though inflation is well north of their, you know, bogus 2% target and headed higher, right?


[music] Uh they're cutting rates when they should be hiking rates and it's mainly because we can't afford [music] the rates that we have now, let alone the rates that would be required to restore inflation to 2%. Right? So, we're cutting rates, but we're letting our creditors know that if you hold dollar or treasuries, you know, you're going to lose. We are going to debase uh what you're holding, and we're not going to pay you a a rate of interest that's anywhere near close to compensating you


for what you're going to lose to inflation. And so, I think given that, the world has made a a decision to get out of dollars. And so I think you're going to see the weakness in the dollar against other fiat currencies. I mean, clearly when gold is at 4,000 and it was at 2,000 2 years ago, the dollar has lost half of its purchasing power in terms of how much gold you can buy with your dollar. So the dollar is losing value against real money right now, but so are the pound and the euro and the


yen and all these other currencies. Um, but I do think that you're going to start to see the dollar losing a lot more value relative to its fiat counterparts, uh, either, you know, before the end of this year or or next year. And that's going to accelerate the increase in the price of gold in dollar terms. But I think it's already uh, you know, you know, giving you a forewarning that that's going to happen. And I think gold is rising as a reflection of a loss of confidence in the dollar because I


think the main reason that gold is being accumulated is because central banks have lost confidence in the dollar and in the you know the the fiscal responsibility of the US government or any the credibility of the Federal Reserve. So you're seeing it first in gold. I think you'll next see it in the dollar and then I think you'll see it after that in the Treasury market where you'll start to see a big drop in bond prices and a rise in long-term yields [music] despite the fact that the Fed is


going to be reducing short-term rates. And I think that is going to be the catalyst for a return to quantitative easing because I think the Fed is going to try to uh lower long-term interest rates through its open market operations where it needs to print money to buy the bonds that the rest of the world is is selling. And and so that I think will be another catalyst to drive gold to even higher levels because that's just massive inflation. And you know the last couple of times we tried a QE uh


inflation at least the way the government purports to measure it was below 2%. So the government was able to justify QE by saying look you know inflation is below target and so we could do this uh because the goal is to get inflation higher to reach our target and so you know we're gonna accomplish that with QE. But if inflation is already well above 2%, what is the excuse for creating more inflation? How do you justify QE when inflation is four or 5% the way the government measures it? I don't think they could do that


because just moving it to 3%. Once you move the goalpost once, right? Well, now you've already broken trust because if you can move it to three, you can move it to four. But even moving it to three uh you know is a big gamecher because that means a 50% increase in annual inflation. So I mean what does that do to the present value of gold if inflation is going to be 50% higher from now until the end of time? But of course they're not going to achieve three because if they give up two and they


move to three, well then they're going to give up three. They've already proven that their target is BS when they're above it. they don't have uh the, you know, the monetary kahonas to do what it takes to bring inflation down to 2%. Well, then why would they have it to bring it down to 3%. Or 4%. So, I think, you know, once they once they move it, they're they're they're done, which is why they probably won't. I I don't know that they're officially ever going to


say that they have a target of three. I think they're going to keep a target of two, but they're just never going to hit it. And I thought it was really ridiculous in in the last FOMC meeting, somebody actually asked pal about the, you know, about his forecast because he pointed out, hey, you know, 2 years ago, you predicted that in 2 years inflation would be 2%. And now it's 2 years later and it's way above 2%. And you're still predicting that 2% will have 2% inflation in 2 years. And he said, you


know, why should we believe you? I mean, what makes you more confident now than you were 2 years ago when you made the same prediction? And Pal basically said, "Look, we don't really know where inflation is going to be in 2 years. It's just that 2% is our target. So, that's our forecast. We just we just assume that we're going to hit our target, but we have no idea." So, in other words, they just make it up. The only reason they forecast 2% is because they want it to be 2%. What they may do


to try to get closer to 2% is not change the target but change the CPI. I mean that's how the government operates, right? You you change the methodology for calculating the CPI so that you get a you get a lower number. That that's what they did with the Bosan Commission. That's why the whole CPI is irrelevant today because you know it's [music] been uh rigged by the government to have a low number. One of the biggest realizations finally dawning on people, and it's long overdue, is that the


United States cannot and will not repay its debt honestly. This isn't politics, it's math. The national debt has surged past $ 38 trillion. Add in Social Security, Medicare, and pensions, and you're looking at over $100 trillion in total obligations. That number is so huge, it's meaningless to most people. But for every foreign central bank holding US treasuries, it means one thing. America can't make good on those IUs in money that still holds value. In plain terms, we'll repay in dollars


worth far less than they are today. Debasement is not a choice anymore. It's the only way out. Raising taxes high enough would crash the economy. So, the only lever left is the Federal Reserve. It has to print. It will print. And it's already doing it. The irony, the more debt we pile on, the less we can afford real interest rates. If rates rose to reflect inflation, say 6 or 7%, the government would go bankrupt overnight. So instead, the Fed keeps cutting even as inflation stays above target. And


that sends a clear message to our creditors. Holding dollars or treasuries is a losing deal. They're being paid back in devalued currency, and the interest doesn't make up for it. So, they're quietly backing away. A decade ago, foreigners held half of all US treasuries. Now, just 30%. And you can see the fallout in gold. 2 years ago, gold sat around $2,000 an ounce. Today, it's over $4,000. That's not just a gold rally. It's a vote of no confidence in the dollar. And it's not just America. The pound, the


euro, the yen, they're all sinking in the same fiat lifeboat. The dollar's just sinking slower. But when it finally starts falling against other currencies, too, that's when the real shift begins. Gold is the canary in the coal mine, warning that trust is collapsing. Central banks see it. They're selling treasuries and buying gold because they know the era of trusting the full faith and credit of the United States is ending. If you like our insight, please like and subscribe to our