Did Bessent Say Buy More Gold?

Treasury Secretary Scott Bessent came up with a new way to rob Americans of their own tax dollars while also saying you should buy more gold.

Huh?

George Soros’ former right-hand man, Scott Bessent…

Wait!

You didn’t know that our current Treasury Secretary worked many years for George Soros?

We’ll get to that later.

Meanwhile,  two senior Treasury officials told CNBC that Treasury could use its near $1 trillion General Account (TGA) to help fund the governments bond buybacks.

Wait!  Where did that TGA come up with that much money?

Bessent has called this operation Treasury Twist using the government’s checking account – a rainy-day fund of sorts held at the Fed – to bail out the bond market.

Ironically (or NOT) it is already funded with existing tax collections.

Translation: Using your tax dollars to cover up or prevent a Sovereign debt default.

Translation II:  The Treasury is selling debt to buy back more new debt.

Why are they doing this?

Glad you asked.

Here’s 3 of the major reasons:

• China has stopped buying our debt…and is selling it

• Japan has stopped buying our debt…and is selling it.

• And now, thanks to Netanyahu’s war with Iran, Saudi Arabia has stopped buying our debt…and is desperately selling it for liquidity needs.

Listen to Bessent or Buy More Gold

 

Unfortunately for the USA, Bessent is about to find out that trying to stop a bond collapse is like trying to stop a forest fire with a garden hose.

Especially when you are the only major buyer of your own debt.

This strategy is also like using your credit card to pay down your mortgage. Genius.

We wonder if Bessent (or anyone else involved) has ever asked the question:

 

“Has This Ever Worked Before?”

 

And we imagine that this ridiculous action probably started with Bessent thinking to himself:

Hmmm! We have an extra $trillion…We could:

• Not borrow so much this year and impress the world big time. Interest rates in all ranges would fluctuate favorably from the perspective of the borrower (the US)

• Use it to buy our own debt and hope it buys interest rates down a bit for a little while, (making sure financial engineering makes money for someone on the side who figures out where the buy down will happen next and then front run it)

 

Bessent and his husband John Freeman

 

Cue Up:  Scooby Doo making that confused noise: Ruh Rho, Shaggy!

BTW, NOTHING in this plan ever goes toward paying down the $40T in debt.

So, although Scotty Bessent didn’t come out and actually say you should buy more gold, his actions should make it painfully clear that, even if you already own gold, you probably don’t own enough.

And if you want confirmation, go back and read the post we wrote on June 29^th:  Did Gold Bottom Last Week? (HERE)

Be sure to see what gold and silver mining stocks we like in our upcoming September newsletter (HERE).

And share this with a friend…especially if they are still thinking about buying gold.  They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~