Opinion: When the world’s largest asset manager and the ‘bond king’ both agree — run to gold, silver and bitcoin
The world’s largest asset manager and the “bond king” join the preppers defending against Washington’s financial repression.
www.marketwatch.com
A very intersting article which follows the same theme as many others.
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EXCERPT....
But here’s where it gets interesting, and by interesting, I mean terrifying.
Some clever folks in the digital currency business just figured out how to make financial repression work even better.
There’s this thing called a stablecoin. It’s basically a digital dollar that’s supposed to be always worth exactly one dollar. Think of it as cryptocurrency for people who hate the crypto part. The biggest stablecoin company, called Tether, makes these digital dollars and backs them with real assets. They’ve got 170 billion of them floating around the world right now.
Still with me? Good. Because here comes the con.
Tether just announced they’re launching a special U.S. dollar-backed coin called USA₮. Yes, they trademarked the dollar sign, because apparently regular dollars weren’t pretentious enough.
This new digital dollar will follow rules written by something called the GENIUS Act.
And here’s where it gets beautiful, in that train-wreck sort of way.
The chief executive of this new digital dollar company? Bo Hines. Until August, he was Trump’s crypto adviser, helping write these exact laws. One month later, he’s profiting from them. In Washington, that’s actually considered a cooling-off period. The rest of us have other names for it.
These rules say every USA₮ must be backed by U.S. Treasury bills. Let me translate: By law, anyone who wants to use these digital dollars is forced to lend money to the government at whatever pathetic rate Washington offers.
It’s like passing a law that says every American must eat at McDonald’s three times a week. McDonald’s doesn’t need to make better burgers or offer competitive prices. They’ve got guaranteed customers. Except in this case, you’re McDonald’s, and you’re being force-fed Treasury bills that pay 3% while the money supply expands 7%.
Here’s the beautiful part. While Tether is building this machine to force people into Treasury bills, guess what they’re doing with their own money? They’re buying gold. $8.7 billion worth, sitting in Swiss vaults. They’re buying gold-mining companies. They made $13 billion in profit last year and they’re converting it to hard assets as fast as they can.
The market’s already caught on. Gold is up more than 40% this year. Silver hit 14-year highs. Central banks are buying gold like it’s 1999, except instead of Y2K, they’re preparing for D-Day: Debasement Day.
This isn’t fringe behavior anymore. BlackRock manages $10 trillion. Gundlach built his reputation betting on bonds when bonds were the only game in town. These aren’t gold bug podcasters or silver-stacking survivalists. These are the people your financial adviser name drops to sound sophisticated.
Yet they’re all making the same move: Out of paper, into real assets. When the house starts betting against its own game, smart players don’t ask questions; they follow the money.
. Might not be long before we have terapixel cameras.