The dollar's slow erosion — $40 trillion in debt

As you know, macroeconomics and geopolitics are a big interest of mine. After the summer break I'm getting more active and devouring information to judge what's clickbait and what's actually worth watching. I usually use the weekends to set my sights on the coming week. I'm going to start sharing more of my thinking.

Below is worth watching a little extra right now.

1. The US national debt has passed $40 trillion and the Treasury is now buying back its own bonds – the market reads it as more money printing, which would weaken the dollar. New Fed chair Warsh did, however, flag on Friday that inflation is still too high, which can give the dollar temporary support – that's where the thesis is tested.
2. The US is now threatening to shut countries that trade with Iran out of the dollar system – aimed mainly at China. Short term not much happens to the dollar; it's driven mostly by the Fed and rates. But long term this is big: the more the US uses the dollar as a weapon, the more countries look for alternatives – the dollar's share of the world's currency reserves is already the lowest in 25 years.

Slow erosion rather than collapse, but it strengthens the long-term case for gold & silver. See finance minister Bessent's statement here 👇