Gold, Japan, Bonds and the Big Print

BREAKING NEWS

THE EUROPEAN CENTRAL BANK IS WARNING THAT GOLD MARKETS COULD POSE A THREAT TO THE EURO ZONE'S FINANCIAL STABILITY IN THE EVENT OF GEOPOLITICAL STRESS DUE TO DEMAND FOR PHYSICAL SETTLEMENT

Right on schedule.

— Gold Telegraph ⚡ (@GoldTelegraph_) May 19, 2025

The above tweet is not a warning of what might happen: it is preparing people for what is coming when they realize that gold has be hypothecated at 132:1. The US markets are currently down and UST yields are up after Friday’s announcement after the closing of the bell:

30-year Treasury yield jumps above 5% after Moody’s downgrades U.S. credit rating

U.S. Treasury yields spiked on Monday after Moody’s downgraded the U.S.′ credit rating, causing investors to dump bonds. Rates hit key levels that have pressured financial markets recently.

The 30-year Treasury yield hit a high around 5.03%, reaching levels not seen since November 2023. The yield last traded at 4.969%, up 7 basis points. The 10-year yield climbed 6 basis points to reach 4.501%. Meanwhile, the 2-year Treasury yield was up 1 basis point at 3.993%.

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Japan also dropped a bombshell:

Japan PM warns financial condition worse than Greece’s

Japanese prime minister Shigeru Ishiba said his country’s financial condition was worse than Greece’s as he rejected calls for tax cuts at a time of rising borrowing costs.

Mr Ishiba said he didn’t think it was a good idea to fund tax cuts with government bonds just days after the economy was reported to have shrunk for the first time in a year, and at a pace faster than expected, in the face of US president Donald Trump’s trade policies.

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And then the Fed has begun the “big print”:

BREAKING: Fed Caught Quietly Bailing Out Bond Market with $43.6B Injection.

No buyers? No problem. The Fed just snapped up billions in Treasurys: $8.8B in 30-year bonds in a single day and 43.8B in total last week.

THE BIG PRINT HAS JUST BEGUN. pic.twitter.com/w4JmQ6DEo4

— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) May 17, 2025

There are too many coincidences in a small time frame to ignore. I would say to be vigilant but I have a strong suspicion that most people have not stopped their prepping and are hopefully planting large gardens.

David DeGerolamo