Fed Preps Massive Bond Buying as Japan Dumps US Debt

Fed Preps Massive Bond Buying as Japan Dumps US Debt

Right now, the Fed is gearing up to buy massive amounts of US debt, but they’re not doing it to stimulate the economy. They’re doing it out of desperation. As one of our largest buyers walks away, a sure signal that the currency reset that we are all living through is accelerating. Meaning your dollars are losing value fast and that it has never been more important to make sure that you’re protecting your financial future outside of the fiat currency system with physical gold and silver. In case you missed it, last week the Federal Reserve quietly ended QT, quantitative tightening, or the process of letting assets such as US bonds roll off their balance sheet to shrink liquidity. The Fed has been tightening since March of 2022 in an attempt to fight the inflation that they themselves ignited by printing trillions in 2020. But now this phase is ending. Not because the Fed has run out of assets to get rid of. No, in fact, the Fed still has trillions left over from pre2020 on their balance sheet. And it’s certainly not because the Fed hit their inflation target of 2%. In fact, inflation is on the rise, currently sitting at 3%. And 3% is completely misleading as well, because that’s just how much inflation is going up right now. It doesn’t even take into account what we’ve already lost, which most estimate is around 25% in the last 5 years. But if you ask me, even that is conservative. But what’s changing today is a structural shift within the US debt cycle. See, inflation, while terrible for everyday Americans and for optics, it’s actually not really a problem for those at the top because inflation might be their only way out. inflation or a devalued currency, a currency that is continually worth less, makes the real value of the US debt worth less as well, meaning that it’s easier to pay off. Nominally, it stays the same, but the real value shrinks, which is very important when you’re dealing with $ 38 trillion in counting. In fact, by the time you finish watching just this video, the debt will have gone up roughly $60 million more dollars. But it’s not just the size of the debt that’s the problem. It’s the size of the debt coupled with declining demand. See, because the dollar has always been the global reserve currency, there has always been strong demand for US debt. But as fiscal uncertainty and geopolitical risk have grown, the demand is disappearing. There’s a tired and outdated saying, I’m sure you’ve heard it before, there will always be a buyer for US debt. Sure, that’s true. There’s a buyer for everything, but at what cost? That’s the question we need to be asking? Because as demand continues to decline, buyers are demanding higher rates of return or higher yields to take on US debt. Higher yields means that our debt costs more. In fact, today just the interest, the cost of servicing the US debt is over a trillion dollar, the third largest line item, right behind social security and higher than our entire defense budget. More interest means we have to spend more to finance that interest. By spending more, it means we have to issue more bonds because that’s how we spend. We create more debt. But more debt requires more buyers, which we don’t have. Do you see how this is a cycle here? And it continues to go around and around. But that declining demand, that is what is accelerating this spiral downward at a rapid pace. And history shows us what happens when nations reach this point. When unsustainable breaks, it’s an acceleration moving forward in a currency reset. A currency reset is both a process and an event. A process where confidence in a currency collapses often as a result of overspending which leads to inflation, hyperinflation or the rapid increase of prices and ultimately an official revaluation or devaluation of the currency which results in the fiat currency being worth its intrinsic value which is always zero. It’s what we’ve seen happen in Venezuela, Argentina, Weimar Germany, the list goes on and on. overprinting, inflation, hyperinflation, reset. Which brings us back to today with the Fed ending QT, Japan’s bond market, and what happens next. Over the past week, Japan’s bond yields have been surging with their tenure hitting the highest level since 2007 and their third year hitting record highs. But do not be fooled. This is not a boring technicality, and it most certainly is not a Japan-only problem. Japan has often been called the world’s largest creditor and this is largely because Japan’s rates have always been low. So, Japanese investors have always put their funds elsewhere, such as the United States. In fact, Japan is the largest holder of US debt. As Japan’s yields continue to rise, the math no longer makes sense for those funds to go elsewhere, which is why we are expecting to see an outflow of funds from the US back to Japan at a time when the US needs buyers the most. Every dollar that leaves the US and goes back to Japan is a dollar that you have to find a buyer for. And if the buyers aren’t there or they’re demanding too high of yields, well, who do you think is going to step in? the Federal Reserve, the lender of last resort. But what happens when they step in and start buying our own debt? They talked about ending QT, but it’s essentially restarting QE, quantitative easing, firing up the old printing press. And you cannot create more units of an existing currency without devaluing the existing units of said currency. This is how each and every single one of our dollars are worth less. This is where it becomes so important to make sure that you understand how to protect yourself throughout these specific scenarios. What we can learn from past currency resets. And I’ll give you a hint. It’s not going to be the dollar. It’s not going to be stocks and bonds. And it’s not even going to be real estate that protect you through this reset. Historically, time after time for thousands of years, there is one asset that truly protects wealth through the reset, and that is physical, tangible gold. It’s the exact same reason that central banks are buying gold in record quantities, because they understand what is coming next for the dollar and therefore the global monetary system that is based on the dollar as it is accelerating through this currency reset. As the dollar inevitably is going to be worth less and less, there is only one true asset that nations and individuals turn to during these times where trust is broken and it is gold. Because gold has intrinsic value. It doesn’t rely on counterparty promises. There is zero counterparty risk and you cannot print more of it. This is why for me, gold is not just another investment. Yes, it’s up 60% year to date. Yes, it’s outperformed the stock market, the magnificent 7 and Bitcoin. But that is not even why I hold it. I hold gold as my insurance policy against what is coming next because there will be a day in the future where everyone will look around and say, I do not have enough gold. That is what has happened time and time again. Now, if you want to learn more about currency resets throughout history and how different assets are impacted, as well as what you can do to protect yourself and the timeline we’re on, you can always download our free bill to endure report. It’s exactly why we created it because we get so many questions from our viewers asking us more about the reset. You can download your copy by scanning the QR code or there’s a link down below in the description. But if history shows us anything, things are about to get a whole lot worse again. And we know what comes after inflation. It is hyperinflation. And when prices start doubling every single day, that’s not a situation that I want to be trapped inside the system for. I want to make sure that I’m protected outside of the system again with real physical tangible gold that I hold, I own, I control, that no one else can touch. If you do not already have a strategy for what comes next that involves physical gold and silver, I highly, highly, highly recommend that you get one. especially talk to someone who understands this. Now, we at ITM Trading, we are a fullervice gold and silver, physical gold and silver dealer, but we don’t just sell gold and silver. We work with our clients one- on-one to really make sure everyone understands again the nuances of what we can learn from history, where we are today, and what’s coming next. So, if you have any questions at all or you’re ready to get that strategy in place, or even if you already have gold and silver, but you want a second opinion, call us at the number below, scan the QR code to set up a time to talk with us, or there is a Cali link in the description below. Whatever is easiest for you. I just want to make sure that every single person out there watching not only understands what’s going on and therefore what’s coming next, but also that you’re taking action to make sure your wealth is protected. because I know it’s too important to leave to chance. And as always, thank you so much for being here. I’m Taylor Kenny with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.

The Fed just ended Quantitative Tightening without telling you why. The truth? Foreign buyers are walking, debt is exploding, and the dollar is being sacrificed. Now we’re headed straight into QE, currency devaluation, and global loss of trust in the dollar.

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📖 CHAPTERS:
00:00 The Fed’s Desperate Pivot
01:30 QT Is Over: What That Really Means
03:00 The Real Inflation Story
04:20 The U.S. Debt Spiral Explained
06:00 Vanishing Demand for U.S. Treasurys
07:11 Japan Dumps U.S. Debt
08:30 QE Is Back: Welcome to the Currency Reset
09:03 Take Action Now

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Disclaimer: The information provided in this video is for educational purposes only and should not be construed as financial advice. Gold and silver prices are influenced by many factors and may fluctuate. All assets carry some risk and past performance does not guarantee future results. The views expressed by our hosts or guests do not always reflect the views of ITM Trading nor guarantee a specific outcome. Always conduct your own research and consult a financial advisor before making any investment decisions.