Currently, the whole world is engaged in two activities: one is hoarding gold, and the other is selling U.S. Treasury bonds.

The reasons are well known to everyone, which is that the risk of a U.S. debt bomb is becoming increasingly greater: firstly, because the scale of U.S. debt is growing larger and larger, like a snowball rolling down a hill; secondly, as the U.S. Federal Reserve raises interest rates and the U.S. government continues to impose sanctions, the income of the U.S. government is plummeting; thirdly, due to the impact of high interest rates and high inflation, the cost of the U.S. repaying its debt is also soaring sharply.

These several factors combined can only be said to be a further blow to the already shaky U.S. economy!

As for these data, the U.S. Department of the Treasury has already made it very clear: as of the first nine months of the fiscal year 2023, the U.S. federal deficit has already reached as high as 1.4 trillion U.S. dollars, an increase of 170% compared to the same period, but the income has plummeted by 26%, and the cost of the U.S. repaying its debt has also increased by 25%.

So, the U.S. government is still claiming that the U.S. economy is very robust, but this statement can only deceive its own people, while the rest of the world sees it very clearly. This is the core reason why everyone is hoarding gold and selling U.S. Treasury bonds.

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It should be said that at this critical juncture, the U.S. should take practical actions to establish the confidence of the world in the U.S. However, the U.S. has done something that even its own people are afraid of, that is, the Federal Reserve has repeatedly refused to allow several countries, including China, to repatriate the approximately 7,000 tons of gold stored in the Federal Reserve, and at the same time, it does not disclose specific audit data. This matter is even more serious.

Muni said that since the gold stored by the world's countries in the Federal Reserve for more than 40 years has not been physically audited, we should conduct a comprehensive audit of these gold reserves, increase their transparency, and reassure the world, because only in this way will there be buyers for the trillions of new U.S. Treasury bonds issued by the U.S. in the future, especially China and Japan, ensuring the safety of gold is very important. Because our country also has 600 tons of gold stored in the Federal Reserve.

But what about the Ministry of Finance? It always remains silent and does not say a word. It's okay if you don't let the countries repatriate the gold, but you don't even disclose specific data and audit details, which is a bit too much. This has further increased the world's concerns about U.S. debt.

That's because the U.S. dollar has now evolved into a credit currency, and the world still supports the circulation of the U.S. dollar, and more importantly, it values the credit of the United States. But now? The U.S. not only refuses to pay gold but also does not disclose specific data. One of the very important reasons is that the U.S. may have secretly misappropriated these gold reserves.If this is really the case, then it would be more serious than the default of U.S. Treasury bonds. However, looking at the past actions, the United States has already lost its credibility, and not allowing the default of U.S. Treasury bonds is just a desperate struggle, we cannot guarantee that the United States will not do these underhanded things! This is also the place where countries around the world are more worried.

As the saying goes, what you fear will come! According to the analysis of the ZeroHedge website, if the United States refuses to pay gold, and if the U.S. Treasury bonds cannot be sold next, this will further increase the financial credit risk of the United States, and then major buyers including China and Japan will sell 700 billion U.S. Treasury bonds one after another.

If this is really the case, then it means that our country will not sell U.S. Treasury bonds, but will clear U.S. Treasury bonds. This is more of a double blow to the United States.

So, does the United States refuse to pay gold, which will only lead to countries clearing U.S. Treasury bonds so simply? I believe the ZeroHedge website must have deeper words that dare not say. That is because this matter will make the United States completely friendless, including the United States' allies. This will also make the status of the dollar hegemony in danger, and a new global currency will be born quickly.

Let's take a look at what serious consequences will be brought about after the United States refuses to pay gold?

Due to the huge debt crisis in the United States, coupled with this series of breaches of trust, it is inevitable for the world to think about a very serious problem, that is, the global currency needs to return to the gold standard. And on this issue, even the United States' allies are on the same line with the world. This also means that after the United States refused to pay gold, the United States' little brothers finally woke up and said goodbye to the dollar hegemony!

According to the World Gold Council, central banks around the world purchased 1,136 tons of gold in 2022, setting a 55-year record for the highest purchase record, and in 2023, they are still buying gold at a record pace.

In addition, countries such as Poland, Germany, Saudi Arabia, Australia, France, Israel, the Netherlands, Belgium, and Italy, which are allies of the United States, are also buying a large amount of gold and raising the banner of clearing U.S. Treasury bonds.

According to the data released by the Polish central bank cited by the U.S. ZeroHedge financial website, the Polish central bank has become the third-largest gold buyer after China and Singapore in the first half of this year.Through these data, it is evident that the current global rush to stockpile gold is not for investment purposes, but rather as a prelude to adopting it as the official currency. This is evidenced by the birth of Europe's first gold-dispensing ATM in the Czech Republic.

European countries are now well-prepared to revert to the gold standard or to adopt digital currencies backed by gold, national currencies, oil, and other strategic resources. Even 12 states in the United States have declared gold as legal tender, replacing the US dollar and officially recognizing gold as an official currency on par with the dollar.

Now let's talk about China.

Since November of last year, China has purchased a total of 188 tons of gold, and since 2017, at least 6,350 tons of gold have been shipped back to China from the European and American markets.

Additionally, China has joined forces with Russia, Brazil, India, and South Africa, the BRICS nations, to plan the joint launch of a new transactional currency supported by gold, which will undoubtedly feature the digital yuan.

It is worth mentioning that currently, 41 countries wish to apply for membership in the BRICS nations, including Iran, Saudi Arabia, France, Argentina, and Turkey. They are also very interested in the new currency of the BRICS nations, expressing their willingness to accept the currency for cross-border transactions to bypass the monitoring power of the US dollar.

Finally, I would like to say that the United States' refusal to pay in gold is digging its own grave and adding fuel to the fire of the US debt crisis. The consequences of this will not be as simple as countries clearing their US debt, but will accelerate the return of the global gold standard and the birth of new currencies.