Jun. 8 at 10:59 PM
$SLV $B $GLD $JNUG $GDX
Moves like this right here are why more & more countries are reducing their exposure to US dollars & treasuries
Actions like freezing or potentially redirecting foreign assets don't usually cause countries to dump dollars overnight. BUT, Instead they encourage:
1) Holding more gold
2) Diversifying reserve portfolios
3)Conducting some bilateral trade in local currencies
4)Building alternative payment systems outside the U.S.-controlled financial network
My reserves are safe only as long as I remain on good terms with Washington, then it has an incentive to diversify
What this eventually boils down to is fewer buyers Treasuries.
Hence they diversify into gold, hold perhaps more euros, yuan, or other assets. Then things get real where they begin to touch the everyday american by U.S. deficits getting even large, debt grows faster than the economy, Interest payments consume a growing share of federal spending. The US isnt too far off
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