The U. S. Federal Reserve is shifting its approach to managing national debt as Japan, a major holder of U. S. Treasuries, reduces its investment. This change comes despite ongoing inflation and a large debt burden.
• The Fed has ceased Quantitative Tightening not due to inflation control or a clean balance sheet, but because Japan is selling off U. S. Treasuries.
• With over $38 trillion in national debt and rising interest payments, the demand for U. S. debt is declining.
• The Fed is set to step in as the main buyer of U. S. debt, signaling a shift from a focus on stimulus to survival.
• This scenario is typical during currency resets, where confidence in the dollar declines, leading to a preference for real assets like gold over stocks and cryptocurrencies.
ITM Trading highlights the importance of preparing for financial instability by investing in tangible assets, emphasizing that gold is a safer option during these uncertain times.
https://www.zerohedge.com/news/2025-12-11/fed-preps-massive-bond-buying-japan-dumps-us-debt
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