The so-called “debasement trade” that’s been pumping crypto and precious metals has broken through into the mainstream. The Kobeissi Letter reports that the word "debasement” appeared in 1,533 Bloomberg articles last week double the week before and the third-highest number of mentions on record. VanEck Asia Pacific Managing Director Arian Neiron told the Australian Financial Review the trade reflected a “fiscal reckoning” for the world’s largest economy. “The US is holding so much debt and long-term yields are at 2007 levels,” he said. “So the question for an investor is: well, if I’ve got too much US Treasuries, what is my real store of value? What’s the asset that’s really going to hedge the risk? That’s why the debasement trade has come to the fore again.” The US primary budget deficit of -3.58% is the largest among major advanced economies.
Everybody’s talking about the “debasement trade”
The so-called “debasement trade” that’s been pumping crypto and precious metals has broken through into the mainstream.
The Kobeissi Letter reports that the word "debasement” appeared in 1,533 Bloomberg articles last week double the week before and the third-highest number of mentions on record.
VanEck Asia Pacific Managing Director Arian Neiron told the Australian Financial Review the trade reflected a “fiscal reckoning” for the world’s largest economy. “The US is holding so much debt and long-term yields are at 2007 levels,” he said.
“So the question for an investor is: well, if I’ve got too much US Treasuries, what is my real store of value?
What’s the asset that’s really going to hedge the risk?
That’s why the debasement trade has come to the fore again.”
The US primary budget deficit of -3.58% is the largest among major advanced economies.