The US now has three men steering monetary policy who barely agree on anything, and between them they're doing more to wreck the dollar than any single bad decision could. Treasury Secretary Scott Bessent is buying America's own debt back with borrowed money. Donald Trump wants interest rates slashed to 1 percent in the middle of a hot economy. And Fed governor Kevin Walsh, styled as the sensible inflation hawk of the three, hasn't lifted a finger to actually fight inflation.
I call them the Three Stooges, and it's not just a joke. Each of them is making a separate, uncoordinated decision, and every single one of those decisions points the same way: more debt, more money printing, and a weaker dollar. Here's what each of them is actually doing, and why their antics have me more bullish on gold and silver bullion than I've been in years.
Scott Bessent Is Now Buying His Own Government's Debt
America's national debt just crossed a record $40 trillion. The Treasury has to keep borrowing constantly to fund the government, showing up with bonds to sell, but the customers who normally buy that debt are disappearing. So Bessent has started buying the bonds himself, using Treasury money, effectively becoming his own customer.
He's since said he'll draw on the $950 billion Treasury General Account to buy "as much as we need," with buybacks now running north of $10 billion a week. "I am the house now," he told traders warning them not to bet against him. Bond yields kept rising anyway. I went into this in more depth in a recent article on the Bessent buyback strategy, and if this isn't the beginning of the end for the US dollar as the world's reserve currency, I don't know what is.
Trump Wants 1 Percent Interest Rates in a Hot Economy
Trump has publicly said the US should have a 1 percent interest rate. He said this right after the US posted strong jobs data, the exact moment central banks are supposed to raise rates, not cut them. When the economy is running hot, you raise rates to keep inflation in check. Cutting them into a hot economy is asking for the opposite.
Part of this might come from Trump's real estate background, where lower rates mean cheaper debt to buy more property. But there's a simpler explanation. The US has more than $40 trillion in debt it can't realistically pay back. Cut interest rates from 5 percent to 1 percent and you cut the cost of servicing that debt by roughly 80 percent. That's not tin-foil-hat stuff, that's just the maths.
Kevin Walsh: The "Inflation Hawk" Who Isn't Fighting Inflation
Kevin Walsh is the one Trump picked to be the sensible voice, the inflation hawk of the trio, despite once suggesting the US should have printed whatever it took to get out of the GFC. In his public statements he talks tough about delivering the Fed's 2 percent inflation target. In practice, he hasn't raised interest rates and has been printing money at the fastest rate in five years.
During his Jackson Hole speech he referenced going on "hikes" around Jackson, and algorithmic traders read the word as a signal of interest rate hikes, briefly selling off gold and silver before realising the mistake. It's a useful reminder: dirty tricks and loose talk can move the gold price for a day, but they don't change where the US dollar is actually heading over the long term.
Why the Three Stooges Are Fuel for the Precious Metals Super Cycle
None of these three men are working together, and they don't need to be. Bessent buying bonds, Trump pushing for near-zero rates, and Walsh printing money while talking tough all lead to the same place: a debased dollar. That's exactly why we buy gold, silver and platinum as long-term investors, not as a reaction to any one headline.
Right now, gold, silver and platinum all look to be breaking out of the consolidation patterns they've been trading in over the past year. Combined with the fundamental setup above, I'm expecting silver to reach $300 USD an ounce within the next three years, with gold hitting $10,000 an ounce over the same period, and platinum outperforming both.
This is not financial advice. This is insight into what I do with my own money, not a recommendation for what you should do with yours. We're not day traders reacting to a Jackson Hole speech or a tweet, we're long-term investors positioning for the scale of what's coming.
Three separate men, three separate agendas, one shared outcome. Keep watching this one, because the antics aren't slowing down.
What a time to be alive.
Sam from Liberty Bullion.
