The Death Of The Dollar

Victor Dergunov Investing Group Leader Follow Summary The Treasury is using proceeds from short-term Treasury sales to buy long-term bonds, effectively conducting its own form of QE to lower long-term yields. The Fed is indirectly supporting this by buying $40 billion/month of short-term Treasuries, boosting liquidity without labeling it official QE. Global demand for U.S. Treasuries is waning, with central banks diversifying into gold, which supports a bullish long-term thesis for gold prices. I expect gold to reach $5,500–$6,000 by early next year and potentially $10,000+ in 3–5 years, making it a top asset to own. Looking for a helping hand in the market? Members of The Financial Prophet get exclusive ideas and guidance to navigate any climate. Learn More » EvgeniyShkolenko/iStock via Getty Images So, the Treasury is now buying its own bonds. What's even more interesting is that the Treasury is purchasing long-term Treasuries (10-30 year bonds). However, the Treasury is not the Fed, and it cannot print or "create" dollars unlimitedly. Therefore, it's implementing a fascinating tactic. The Treasury is This article was written by Victor Dergunov 56.55K Followers Follow Hi, I’m Victor Dergunov, MBA, and I’ve been an active investor for over 20 years. My passion for investing started early, and I’ve spent two decades honing strategies that consistently deliver results. Whether it's tech giants like Apple and Tesla or opportunities in commodities and crypto, I provide diversified insights to help you succeed. Join me, and let’s take your investing to the next level. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long a diversified portfolio with hedges Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.