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DJ Synikus Makisimus

(1,263 posts)

20. Central banks are buying metals. Not a good sign for the US economy.

Tue Jan 20, 2026, 09:37 PM

Jan 20

Last edited Tue Jan 20, 2026, 11:15 PM - Edit history (1)

The gold market rise appears too be only partially fed by individual and institutional investors. It's not just folks dumping crypto. Central banks have been liquidating gold and other metal assets for years, until now.

Trump's threats to the Fed have unnerved folks across the world, and fed the BRICS dream of replacing the dollar as the world's go-to currency. One of the European Central Bank's VPs, Luis de Guindos, issued a statement of confidence in the Fed yesterday.(1) Reminds me of the losing head coach who gets a statement of full confidence from the ownership, days before getting fired. The US economy floats on a sea of debt (and the interest paid on it), underwritten by treasury securities. They've been the world's safe harbor for years. China is the largest holder of them. Much, perhaps most, of the US debt is held abroad.

Should the world abandon the dollar and another vehicle for investment replace US treasuries, the US economy is finished. Agricultural and weapons exports won't maintain our lifestyles. This is the world Trump and his finance bros have been working for, as they think they'll be immune. Trump's lowborn fascists (see the Birchers, KKK and US Nazis) have been forming conspiracy theories about the Fed since before Trump was born without thinking consequences, so that's not new. It's that lots of very wealthy finance bros seem to buy into them. Perhaps they will.

If it does happen, we lowborn folks will likely be reduced to abject poverty and servitude, assuming we can find a master to serve. It's not a sure thing yet, and it isn't going to happen overnight, but it's important to be aware of the trend. If you're interested keep your eyes on how the sales of treasuries go in 2026-7, and watch the interest rates. It's also interesting to follow the price of gold and silver every week or so.

Oh yeah, in related news, China posted a trade surplus of $1.2 trillion in 2025.(2) Hmm.

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(1) https://www.politico.eu/article/ecb-vice-president-luis-de-guindos-we-still-trust-the-fed/
(2) https://www.reuters.com/world/china/chinas-trade-ends-2025-with-record-trillion-dollar-surplus-despite-trump-tariffs-2026-01-14/

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BaronChocula raccoon

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Highlight:

Staggering amount of US treasuries dumped as Trump salivates over Greenland [View all] turbinetree Jan 20 OP

So it begins... Aristus Jan 20 #1

Never ask for whom the bells tolls.... NotHardly Jan 20 #9

Yes. Literature reacquaints readers with reality. But the felon obviously doesn't read. ancianita Jan 20 #13

I can think of one clod I wish would be washed away by the sea. raccoon Jan 21 #34

This may be what it takes Mme. Defarge Jan 20 #2

I really hope that after listening to some of the leader's speeches at Davos, Bev54 Jan 20 #10

The finacial world expressing to Trump Johonny Jan 20 #3

$100 million is a pittance. It was the warning Melon Jan 20 #4

Like... if China joined the dumping club! nt slightlv Jan 20 #7

Actually, I thought that I saw someplace that China was already dumping treasuries. h2ebits Jan 20 #31

Not dumping at all. Countries ebb and flow Melon Jan 21 #37

Thanks for the correction. That must have been what I saw and remembered inaccurately. h2ebits Jan 21 #38

Do we want to f around and find out what happens when the warning is ignored? IronLionZion Jan 20 #29

That would add to The National Debt, right? no_hypocrisy Jan 20 #5

That is the national debt, funded by selling US treasury bonds. Bev54 Jan 20 #12

Not directly, but it still ain't good for any of us. paleotn Jan 20 #15

It makes our national debt more expensive because Treasury has to pay higher yields IronLionZion Jan 20 #30

We're barely able to pay INTEREST on the Debt right now. no_hypocrisy Jan 21 #35

This is just the beginning of the end for the good faith and credit of the US that the felon has killed. ancianita Jan 20 #6

Supposedly that's what got him to back off the tariffs last April IronLionZion Jan 20 #8

heh heh...probably... Wondering if you have a link to Orrex? ancianita Jan 20 #11

Every day here on DU IronLionZion Jan 20 #22

Ah, yes! Thanks. ancianita Jan 20 #23

If Denmark, Germany and France stop exporting insulin were screwed. 33taw Jan 20 #14

But...but...but....I didn't think we were reliant on Europe for anything!!! paleotn Jan 20 #17

You'd be surprised. Aussie105 Jan 20 #25

Not true SCantiGOP Jan 20 #21

You may be correct, but that is not what I am finding. Yes,Eli Lilly is a US company. 33taw Jan 21 #32

Reuters link DoBW Jan 20 #16

It will force the Federal Reserve to engage in significant QE at the long end of the yield curve. roamer65 Jan 20 #18

The bigger the depression... purr-rat beauty Jan 20 #19

Central banks are buying metals. Not a good sign for the US economy. DJ Synikus Makisimus Jan 20 #20

I think Japan surpassed China BaronChocula Jan 21 #33

Quite a lot of trade happens. Aussie105 Jan 20 #24

Yes. Yes, he's an idiot. Wharton must be so proud. Buddyzbuddy Jan 20 #26

Gonna be a whomping big distraction from Jack Smith's little chat to the public. Attilatheblond Jan 20 #27

$100M is meaningless other than symbolism Bluetus Jan 20 #28

If that becomes an avalanche, we are SCREWED Martin Eden Jan 21 #36