End of the dollar?

Central banks continue replacing US Treasuries with gold.

This has been going on for a while - since 2012.

That's when China started dumping T-bills and buying bullion bars.

But it's been ramping up recently.

Last quarter, China sold $50B of US bonds, and over the past 18 months, increased its gold holdings by 316 tons, or 16%.

At the current rate, the PBOC will flip its US Treasuries holdings by 2026.

It's not just China. This is a global trend.

IMF COFER Survey shows how US Treasuries have declined from 71% to 59% of global foreign exchange reserves over the past two decades.

This shift is so concerning that the NY Fed felt compelled to address it in a post from May 29th: "...The narratives about declining dollar shares in official reserves, and increasing roles for gold holdings by central banks, inappropriately generalize the actions of a small group of countries."

It's worth noting that this "small group" is China, India, Russia, and Turkey, and represents almost 40% of the world population and 25% of global GDP.

Seriously, small group?

That's a strange way to describe vast swaths of the Eastern hemisphere shifting away from dollars and into a new gold standard.

But not all hope is lost.

While the East is playing the 20th century game of gold accumulation, the West should play to its technological strengths and accumulate 21st century digital gold.

Either way, the debt is getting monetized, and the usual mouthpieces are already inoculating the population against what’s inevitably to come:

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