Via King World News
Ray Dalio just warned that a US debt collapse is coming and Michael Burry warned the big short is about to repeat.
The Big Short
October 1 (King World News) – Michael Burry Stock Trader: Breaking: The Big Short is about to repeat itself
No one is paying attention to housing:
1. Rates have risen for 6 straight weeks
2. Mortgage applications fell 6% in a single week
3. Purchase applications are down 14% from a year ago
4. Refinance applications have fell 56% year over year
5. Serious delinquencies (90+ days past due) just rose for the first time in 5 months, up 19% year over year
Michael Burry stated “The AI narrative and the buildout is the only thing keeping this economy going”…
RAY DALIO: A U.S. Debt Market Collapse In 3 Years, Give or Take Two
Stern Drew: Ray Dalio says that the U.S. is on the brink. If the fiscal path does not change, a debt shock could hit in 2 years.
$40 Trillion in debt and climbing, net interest surpass defense spending.
U.S. 10-Year Yields continue to skyrocket despite multiple interventions and bond-buybacks by Scott Bessent. He even called himself “the house” and eventually admitted that U.S. bond market is in an “illiquid period” and cannot set the equilibrium price.
Here is the real pressure point: Japan is one of the largest foreign holders of Treasuries. If Tokyo ever starts selling in size, yields spike, liquidity tightens, and the shock hits banks, pensions, and risk assets worldwide. That is why Washington is leaning on the Bank of Japan to stay put.
Meanwhile, China is hedging.
Beijing has been stacking gold for years. The yuan has been firmer against the dollar at times. Hong Kong and Shanghai have built gold-settlement plumbing that can clear without going through the dollar.
Yuan-denominated gold trading infrastructure is live. That is a parallel system, not a replacement for the dollar.
The CCP can never replace the dollar, but they’re taking advantage of the situation in real time.
Why it matters: If confidence in Treasuries cracks, paper assets do not drift lower politely. Gold can reprice violently. China wants an escape hatch if that day comes.
This was exactly warned by the famous City of London banker Lord Belgrave at the start of the year.
The dollar does not lose because China posts a gold contract. It loses if America refuses to get its fiscal house in order.
Debasement Trade Is Back On
Robin J Brooks: There was no way the Fed could validate all the hikes markets price. Between the pushback from NY Fed President Williams yesterday and the dovish PCE reading today, an October hike is off the table. That puts the debasement trade back in the driver’s seat.
Gold
Rashad Hajiyev: Gold rallied 70% from August 22, 2025 to January 28, 2026 in the previous cycle. If gold completed a correction and is about to start a new cycle then gold could reach over $7k by March or April 2027…
One Of The Greatest Interviews Ever On Gold, Silver, Miners, Uranium & More!
To listen to one of the greatest interviews ever with Nomi Prins where she predicts $6,000 gold in a matter of months and gives new price targets for markets such as silver, miners, uranium, crude oil and more CLICK HERE OR ON THE IMAGE BELOW.
JUST RELEASED!
To listen to Alasdair Macleod discuss gold, silver, bonds and much more CLICK HERE OR ON THE IMAGE BELOW.
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[ H/T The Burning Platform ]
Ray Dalio just warned that a US debt collapse is coming and Michael Burry warned the big short is about to repeat.
The Big Short
October 1 (King World News) – Michael Burry Stock Trader: Breaking: The Big Short is about to repeat itself
No one is paying attention to housing:
1. Rates have risen for 6 straight weeks
2. Mortgage applications fell 6% in a single week
3. Purchase applications are down 14% from a year ago
4. Refinance applications have fell 56% year over year
5. Serious delinquencies (90+ days past due) just rose for the first time in 5 months, up 19% year over year
Michael Burry stated “The AI narrative and the buildout is the only thing keeping this economy going”…
RAY DALIO: A U.S. Debt Market Collapse In 3 Years, Give or Take Two
Stern Drew: Ray Dalio says that the U.S. is on the brink. If the fiscal path does not change, a debt shock could hit in 2 years.
$40 Trillion in debt and climbing, net interest surpass defense spending.
U.S. 10-Year Yields continue to skyrocket despite multiple interventions and bond-buybacks by Scott Bessent. He even called himself “the house” and eventually admitted that U.S. bond market is in an “illiquid period” and cannot set the equilibrium price.
Here is the real pressure point: Japan is one of the largest foreign holders of Treasuries. If Tokyo ever starts selling in size, yields spike, liquidity tightens, and the shock hits banks, pensions, and risk assets worldwide. That is why Washington is leaning on the Bank of Japan to stay put.
Meanwhile, China is hedging.
Beijing has been stacking gold for years. The yuan has been firmer against the dollar at times. Hong Kong and Shanghai have built gold-settlement plumbing that can clear without going through the dollar.
Yuan-denominated gold trading infrastructure is live. That is a parallel system, not a replacement for the dollar.
The CCP can never replace the dollar, but they’re taking advantage of the situation in real time.
Why it matters: If confidence in Treasuries cracks, paper assets do not drift lower politely. Gold can reprice violently. China wants an escape hatch if that day comes.
This was exactly warned by the famous City of London banker Lord Belgrave at the start of the year.
The dollar does not lose because China posts a gold contract. It loses if America refuses to get its fiscal house in order.
Debasement Trade Is Back On
Robin J Brooks: There was no way the Fed could validate all the hikes markets price. Between the pushback from NY Fed President Williams yesterday and the dovish PCE reading today, an October hike is off the table. That puts the debasement trade back in the driver’s seat.
GoldRashad Hajiyev: Gold rallied 70% from August 22, 2025 to January 28, 2026 in the previous cycle. If gold completed a correction and is about to start a new cycle then gold could reach over $7k by March or April 2027…
One Of The Greatest Interviews Ever On Gold, Silver, Miners, Uranium & More!To listen to one of the greatest interviews ever with Nomi Prins where she predicts $6,000 gold in a matter of months and gives new price targets for markets such as silver, miners, uranium, crude oil and more CLICK HERE OR ON THE IMAGE BELOW.
JUST RELEASED!To listen to Alasdair Macleod discuss gold, silver, bonds and much more CLICK HERE OR ON THE IMAGE BELOW.
Tweet
Continue reading...
[ H/T The Burning Platform ]
