Last week I wrote about the OECD Global Debt Report stating that between corporations and governments $29 TRILLION in new debt was going to be issued in 2026. More concerning is that over $22 TRILLION is just going to redeem debt already issued.

This week, I was reading that here in the USA we have $8 TRILLION in Treasuries maturing between now and December 31, 2026. WOW!

A question I have to ask is if foreign buyers are turning to sellers where will the demand for that type of debt come from? That is the first question and the obvious answer, in my opinion, is that the Fed will release its inner-Japan and buy the debt itself- at least a MAJOR portion of it. Keep in mind that the “money” will have to be conjured up from nowhere to facilitate this- adding a LOT of pressure on the purchasing power of the US dollar.

The Japanese central bank currently holds more than 52% of all Japanese government debt along with major stakes in the Nikkei stock index.

While I made the point about $22 TRILLION that will produce NOTHING but more interest payments, I did not do a bit of a deeper dive that I probably should have.

I have written many times about exponential growth in DEBT. This latest round of redemptions could be different than all of our previous experiences. The main reason is HIGHER INTEREST RATES.

If the mix is mostly T- Bills, the increase in the maturing bonds and new bonds will not be drastically different. Maybe .5% higher. However, bonds issued in 2016(10-year) that had a 1 handle will be maturing at more than 4 times the previous rate. Even the five- year treasury will have a yield that will be 4 times the previous rate. This means that the interest expense that is already over $1.2 TRILLION per year is about to get a major boost higher.

What this means is that the interest payments- which we are already “printing up” to pay right now will demand even more cash from nowhere to keep the illusion of solvency alive.

This has major implications for the price of all goods. Keep in mind that those “in charge” would like us to think that prices rising is just a normal state of affairs. It is NOT. The propaganda is meant to keep prices rising so that those with assets can benefit but also to provide capital gain taxes to the government. This is one of the main reasons that many hate gold.

Politicians cannot tax capital gains on assets that are held instead of traded.

Wall Street cannot charge huge fees on gold. It is only traded by large banks to manipulate the price or trading cowboys who are trying to make a quick buck. There are no dividends to TAX. Gold has gone from $250.00 in 2000 to $4400.00 today- outperforming all other asset classes. How come nobody points this out? Mainly because the financial game shows promote stocks and bonds because of their sponsors. Just look at the commercials. I am sure the government loves propaganda too because they collect their tribute when people- or entities sell an appreciated asset or just simply collect dividends. They get those taxes on dividend payments every year.

Think about how crazy this is. In the 1940s a house was around $4000.00. In the 1970s the same house was around $40,000.00 and now the same house currently- depending upon location of course could be $400,000.00 to $800,000.00 (800k on Long Island NY).

Nothing changed- same wood, same walls, etc. but the amount of dollars needed to procure that same asset has exploded. This is a clear indication that the house has not changed- the purchasing power of our currency has COLLAPSED and could be entering a new phase in as little as the next few months.

This is not only a major sign that hard assets are a place to look for some insulation from rising prices, but it is also a warning about holding large amounts of cash that is rapidly being destroyed. I also believe that our dollar is being destroyed on purpose. Even our president is hawking lower interest rates and a weaker dollar.

The propaganda is King Dollar and strong dollar while all of the actions like wars, out of control spending and debt issuance as well as weaponizing the dollar and alienating most of the rest of the world are creating the exact opposite reality.

The 24/7 propaganda machine is running full speed to keep as many as clueless as possible until it is too late to do anything about it.

Also, just this week Ursula von der Leyen, European Commission president floated out the idea that $10 Trillion in European savings should be mobilized for the common good. In other words, they are contemplating the confiscation of private assets. This screams of desperation. It is obvious that the EU is bankrupt not only financially but also morally. As Gerald Celente says, “When all else fails they take you to war.” All else is failing so they are actively provoking Russia for someone to blame. My opinion is that this is a MAJOR mistake which can only end in disaster. If the “leaders” had any sense they would try to get along and rebuild their crumbling industries with the help of Russian natural gas, oil, and necessary commodities. Instead, they are cutting off their nose to spite their face.

The “leadership” around the world appears to be looking at ways to place blame off of themselves rather than doing the challenging work of fixing the underlying problems of too much debt, too much regulation, and too much fraud.

I do not expect them to change but hopefully, we can change some minds and get prepared for what appears to be some challenging times coming.

Be Prepared!

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