Last week the Senate gave the President power to slap 100% tariffs on any country buying Russian oil. Translation: a shot at China and India — two of America’s biggest creditors.
Nice bipartisan unity. Terrible timing.
The U.S. still needs foreign buyers for about $2 trillion a year in new debt just to keep the lights on. After Washington froze $300 billion of Russia’s reserves in 2022, every central banker got the memo:
Treasuries are safe only if you stay on America’s good side.
They’ve been walking away. Central banks now hold more gold than U.S. Treasuries. China has cut its holdings in half since 2013. Japan has sold every month since April. Foreign ownership of Treasuries fell from nearly half to just over 30%.
Push them out and the last buyer is the Fed. We already ran that experiment. It produced 9% inflation.
The Fed can print trillions. It cannot print gold or oil.
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#Tariffs #China #India #USDebt #Gold #Treasuries #PlanB #Shorts
