Name: The US Bond Debt Collapse Just Started - Gold Is Sounding The Alarm
Uploaded: 2026-01-25T18:15:44.000Z
Duration: 9 min 49 s
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And this is the biggest threat the dollar has faced since the United States abandoned the gold standard in 1971.

Transition words & phrases

When the United States left the gold standard, gold prices soared by over 250% in the next four years because the world realized that their dollars are no longer being backed by gold.

But over the next following decades, the US Government did everything possible to restore the faith of the world in the US Dollars and and gold prices over time slowed down.

However, since 2022, gold prices have risen by more than 200%, which is almost as much as they did back in 1971.

The world is losing trust in the US dollar.

And if this trend is going to continue, it is going to be catastrophic for the US Economy.

So here in this video, let's try to answer a few questions.

Who exactly buying so much gold, how that is going to impact the US Economy and is the US Dollar is in danger?

So if you're ready, give this video a thumbs up and let's get right into it.

The United States still had the largest gold reserves in the world at over 8,000 metric tons.

But the rest of the world isn't actually far behind the United States.

If you combine all European countries, they have a total reserve of more than 10.7 thousand metric tons.

So theoretically, European Union today has four far more gold than the United States.

And if we are going back to the gold standard, European countries can back their currency with much more gold than the United States can do.

BRICS countries have been accumulating far more gold in recent times, but they are still at number three.

The total amount of gold that BRICS countries have are a little over 6,000 metric tons.

The biggest buyers of gold are not individuals or even investors.

The largest buyer of gold in the last 20 years has been central banks, especially in Russia, China, China and the European Union.

But holding gold doesn't actually make sense for central banks because gold is literally a passive asset that sits there and shines and does absolutely nothing.

But holding U.S. treasuries is far better investment.

When people tell you that a lot of countries are holding so much US Currency, it doesn't mean that they are holding the actual dollars, but

And holding Treasuries actually makes sense for any central bank.

First of all, you are receiving interest for holding so much U.S. treasuries.

treasuries are easily convertible into dollars that you can use for international trade or to back or stabilize your currency.

Well, if you are holding so much gold, you can easily turn that gold into real cash overnight.

Here is how the central banks, or AKA the Federal Reserve in the United States, controls the currency.

When you are increasing interest rates, the cost of capital suddenly goes up and the cost of borrowing just becomes more expensive because people are less likely to borrow money, which means that they're less likely to buy a car or get themselves a new house or buy anything, which means that it is going to slow down spending and slow down inflation and vice versa.

If you're going to lower down interest rates, access to capital is going to get a lot more cheaper and people are more likely to borrow money.

And that's how the Federal Reserve or the central bank of any country, the UK has the bank of England, Canada has its own central bank and pretty much every nation has that.

It's one of the main tools that central banks use to manipulate inflation in the country.

The second way the central banks manipulate their currencies is by directly creating money or decreasing the size of the money in the economy.

That's what we call quantitative easing or quantitative tightening is when the Federal Reserve actively buys U S Treasuries in the market.

The U S Treasury market is literally the backbone of the dollar to be the global reserve currency.

So we have the Federal Reserve that actually prints and creates so much money.

And there is always demand for the Treasuries by the US Banks because if you want to open a bank in the country, whether you are JP Morgan, State street or Chase, you are required by law to hold a certain amount of U.S.

So there is always a demand for them and the government can simply tweak the rules slightly and require these banks to hold a much bigger US treasury reserves.

However, international banks work completely differently.

Let's say you have a bank in London and a bank in Brazil and they want to trade, they want to do business because Brazil don't want to accept the British currency and England does not want to accept the Brazilian currency.

But both of them trust the US Dollar, which is why they are using US Dollars.

However, both of these banks don't want to actually hold a lot of US Dollars in their accounts because there is something called inflation and the US Dollar consistently loses its value, which is why instead of actually holding the US Dollars, they're going to hold a lot of US Treasuries and, and

in exchange they're going to receive interest for holding these U.S.

And whenever it's time for them to conduct any kind of trade, they are going to easily convert these US Treasuries into US Dollars and do this trade.

Well, if they are actually going to hold so much gold, then doing this transaction is going to be very difficult, because turning gold into actual currency is much more difficult than turning US Treasuries into actual US Dollars.

That's why the dollar is the global reserve currency.

Because you're holding it, you're receiving interest.

And the interest that you receive from the US Government is always slightly higher than the inflation rate.

So you're actually generating interest for holding these US Treasuries, which is why all these banks across the globe don't actually mind holding so much US Treasuries.

The exact same analogy works for central banks.

Now, all the central banks across the globe are, one way or another, are connected to the Federal Reserve.

It's like a VIP account at the Federal Reserve for international central banks.

And central banks always need some kind of reserves to stabilize their currency.

Ideally, as a central bank, you want to hold a lot of gold.

But the problem with gold is that if you're actually holding physical gold, and

the moment you need a lot of cash to stabilize your currency, selling that gold that is in your vault is extremely difficult because you physically have to take that gold, move it to a different place.

For example, if you have to sell billions of dollars of that gold.

If you have US Treasuries, you're not actually holding any kind of pieces of papers.

Nothing is going to be moved from one place into another.

treasury ledger at the Federal Reserve that tracks who holds or owns a certain amount of U.S. treasuries.

So if you're a central bank in the bank of England and suddenly you need US Dollars, you can literally convert your US Treasuries into actual cash overnight.

And now you have billions of dollars to instantly your market.

But if you're actually holding so much gold, you can't actually do that with gold.

When you don't need those US Dollars, they're continuously earning interest from the US Government, which is why the global economy did not abandon the United States dollar.

Even when the United States abandoned the gold standard, it actually worked for the rest of the world.

So the entire global financial system and the fact that the dollar is the global reserve currency is on the shoulders of the US Bond market.

And the reason all these countries and banks trust the U.S.

tre is because they trust the independence of the Fed.

The moment that trust is eroded, this system is no longer going to work.

So when you see that gold prices are catastrophic, rising so fast recently, it means that central banks are actually buying so much gold.

Gold is not rising because gold is becoming more valuable.

Gold is rising because all these central banks are ditching their U.S. treasuries and buying so much gold.

That huge demand for gold is driving gold prices higher and higher.

And if this trend is going to continue, it literally can break the US Bond market.

And if you break the US Bond market, then the dollar cannot possibly be the global reserve currency because this is how the system works.

Things are getting so bad in the US treasury market that Donald Trump is literally threatening retaliation.

If the European countries sell US Treasuries, nothing literally breaks the system more than threatening your investors that if they sell their investment, you are going to retaliate.

That literally breaks the system even more.

That erodes the trust and the faith in the system.

And that's why you see gold prices rising so fast.

And if this trend is going to continue throughout the entire 2026, do not be surprised that gold prices are going to cross $10,000.

I've warned you about this last year when gold prices just crossed $4,000.

And I told you that most likely in 2026, gold prices are going to be anything between 6 to $10,000.

It's to comprehend how the global economy or the US economy is going to look like when the bond market is breaking so fast.

But if you want to ensure that you are going to profit and win out of this, is to ensure that you are an investor in the right assets every single time.

When there are huge financial or global transitions, there are always going to be winners and there are always going to be losers.

There has been people who made billions of dollars and there has been so many companies that went bankrupt.