. . .
K “Something is up.”
J “The price.”
. . .
K “Its use as both an industrial metal and a precious metal positions it as a valuable and insightful barometer of economic events.”
J “The Chinese and the British have always liked the stuff as money. Industry also likes the metal. Semiconductors, EVs and other clean energy production require the real thing and cannot be papered over with paper deliveries.”
K “Someone with some insight believes that the supply of industrial silver metal may not meet the demand in the next year.”
. . .
K “De-dollarization is quietly moving forward. The dollar is slowly but measurably slipping as the world’s reserve currency while the U.S. Treasury Instruments are slipping as the world’s reserve asset.”
J “Everyone has reservations about the U.S. In a subtle way, the dollar as the ‘medium of exchange’ and the ‘unit of account’ and the UST as the ‘store of value’ are all threatened.”
K “The sale of gold and silver at Costco is a palpable reveal. Some fortunate little people are following the lead of the big banks and the central banks. The people realize they need something real as a store of value.”
. . .
K “The decision by the Biden Administration to steal Russian assets in contravention of every legal convention and every economic conviction was an economic and political nuclear bomb dropped on the world. The world realized what the world always suspected. The United States is the suspect. The United States cannot be trusted.”
J “Trust today is almost no longer even a theoretical construct.”
. . .
K “This thing known as the Japanese carry trade seems to be blowing up, but I do not understand all the implications.”
J “The thing known as the Repurchase trade seems to be blowing up, but I do not understand all the implications.”
. . .
K “Do you believe there was a power outage at the CME that interrupted trading?”
J “Not a chance. Things were getting out of control. So they pulled the plug. They pulled the power when they realized they were losing power.”
K “The plug may be pulled again.”
J “They are losing power.”
. . .
K “There sure are fractures and fissures in the economy.”
J “Stay tuned.”
. . .
[See“Model Collapse: The Entire Bubble Economy Is a Hallucination” By Charles Hugh Smith dated December 3, 2025 in “www.oftwominds.com.”]
[See the e-commentary at Too Much Dirt; Too Few Rugs. Repurchase Agreements (September 23, 2019) noting the trouble in the market for Repurchase Agreements in real time in September of 2019, Holographic Treasury Rates? The 500 Trillion Asset Steal? And Then The Great Taking? Oh, And Happy IRS Day! (April 14, 2025) venturing that the government could simply pretend and report that it found buyers for the Treasuries, “De-Dollarization” Is The Word Of The Week. And The Development Of the Year. (April 24, 2023) on a slow but growing transition, Not World War Tres. Again. The U.S. Declares War On Russia. Again. Oh, And Happy Thanksgiving! Again. (November 25, 2024), Portentous Developments In 2022? (January 23, 2023), Sanctions, Supply Chains And World War E (March 7, 2022) and World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014).]
Bumper stickers of the week:
Dragon < Eagle > Bruin; Dragon + Bruin > Eagle; Eagle + Bruin > Dragon
“To be an enemy of America can be dangerous, but to be a friend is fatal.” Henry Kissinger
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