RE: POG7 Jun 2026 20:13
Very interesting and detailed article on Ticker Talk Newsletter in lasr 24 hours by Gerret Goggon , Chief Analyst and founder Golden Portfolio. In it he highlights 2 events which have occurred and seemingly kept under the rader by the powers to be in US and especially in the treasury .
1. Apparently Saudia Arabia has never renewed it's 50 yr old agreement with the US signed up in 1974, expired in 2024, whereby SA would price it's oil only in US dollars which meant every nation had to stockpile US Treasuries just to buy energy. with this agreement being the bedrock American financial supremacy has rested on for 50 years and is it now gone,
2. Saudi Arabia recently linked a 9billion dollar currency swap with Beijing and started clearing oil transactions in digital yuan., plugged into mBridge,China's cross border settlement network.Conflict with Iran is pushing Gulf States towards yuan denominated oil contracts.Vessels moving through Strait of Hormuz are paying tolls in yuan.
The collapse of this enormous built in global demand for dollars will rewrite how money works.If crude no longer requires dollars then the world has no reason to warehouse US currency.With softening dollar demand - Treasury demand softens equally - yields increase - Fed staps in - the printers fire up -dollar quietly loses value. Already happening with 10 yr gilts creeping towards 4.4%Foreign central bank holdings of US Treasuries at lowest level since 2012- dropping 82billion dollars since war began. As Foreign Tresury demand falls Treasury has a big problem which it hasn't faced in 50 years,It has to refinance 9 trillion of expirying debt in 2026 and another 21trillion by 2031l
Every time the 10 year yield approaches 4,4% analysts observe a softening in trump administr rhetoric about military action.once yield goes above 4.4% cost of servicing 39trillion debt spirals out of control. economists call it a debt death spiral.
On 16 April 2025 ex Treasury secretary , Henry Paulson, on Bloomberg called on US Authorities "to prepare a back up plan in order to avert potential collapse in demand for Treasuries." Paulson is the man who wrote TARP in a week end.On same day as Paulson wrote his Bloomberg article The Treasury executed a 15 Billion dollar buy back of it's own debt.Treasury don't address it as a buy back, or bail out- they call it " a liquidity management operation"
According to Marco Rubio . sec of state, " We wont have to talk about trade sanctions in 5 years because there will be so many countries transacting in currencies other than the dollar, we won't have the ability to sanction them ".= admitting the dollar's leverage is evaporating.
The article's author predicting POG at 10,000dollars .
As the dollar weakens and foreign buyers walk away from American debt GOLD has nowhere to go but up.A sinking dollar is the most powerful tailwind gold has ever known.
Sign In
Follow the stocks
