BESSENT PANICS ANNOUNCES 200% TREASURY BUYBACKS AS LIQUIDITY DRIES UP -GOLD, SILVER AND BITCOIN SOAR
So here are the key numbers to look at.
1. 20 years ago when interest rates on US bonds were this high we had to sell $500 billion in bonds. Now in 2026 we have to sell $10 trillion in bonds.
2. 20 years ago the entire world was using the US dollar to buy oil in the Mideast and so they were buying US bonds. Today, only 60% of the world is buying oil in the Mideast using US dollars and our customers for US bonds has dropped dramatically.
3. 20 years ago the US changed the asset rules for banks forcing them to buy US bonds as collateral for the bank. That created a very big customer for bonds replacing countries that were switching to BRICS, so we didn't notice, but since then the banks have made all their asset allocation adjustments and so the purchase of bonds from US banks has dropped off dramatically.
4. Gold is a much better investment right now than US bonds and you can use gold as a backing for trades that are being done in the Mideast. So investors looking to get a safe return in the market are buying gold, not US bonds.
5. In addition to the US needing to sell $10 trillion in bonds we have other countries like China and Japan selling US bonds. Again, driving up interest rates.
6. AI has become a major competitor for people looking to loan money or buy bonds.
7. One reason for the demand in US bonds was the demand for oil in the Mideast. However, with the shut down of oil and refined products being shipped from the Mideast there is also a shut down in demand for US bonds to purchase the oil.
8. All of this is happening when the US has to ramp up production of weapons and increase their military budget.
This war is a war that will determine if the US dollar remains the reserve currency or if we switch to a gold backed currency.