Yield Curve Control is Inevitable: The Fed Will Blink, Fiscal Dominance Guarantees Aggressive Rate Cuts and a Gold/Silver Explosion!

H/T TAVI COSTA FOR CHART

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The market is living in a fantasy. It is a dangerous delusion, a collective hallucination built on a foundation of outdated models and a naive belief in the Federal Reserve’s independence.

The consensus, as you can see in the image above, is that the Fed will deliver a mere two rate cuts over the next two years. This is not just wrong; it is a dangerous misreading of the new reality we live in.

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We have crossed the Rubicon into a world governed not by monetary policy, but by fiscal dominance. The Fed is no longer the master of the universe; it is a servant to its true master: the unpayable, ever-growing mountain of U.S. government debt.

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• You need to understand the great deception at the heart of the financial markets.
• You need to understand the why the Fed’s hand is being forced.
• You need to understand that the cost of servicing the national debt has become the single most important factor driving monetary policy, rendering inflation targets and unemployment rates secondary.
• And you need to understand the the inevitable endgame: a wave of aggressive rate cuts and the implementation of Yield Curve Control (YCC), a policy that will unleash a torrent of liquidity into the system and ignite a firestorm in the hard asset markets.

The Two-Cut Fantasy: A Market Blind to Reality

The image above is not just a chart; it is a portrait of a market in denial. It shows that the so-called “smart money” is pricing in a slow, gentle glide path for interest rates, with a mere two cuts expected over the next 24 months.

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This view is predicated on the belief that we are still living in a world where the Fed can afford to be “data-dependent,” where it can raise and lower rates based on the ebb and flow of inflation and employment. Let’s be brutally honest…that world is dead.

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The market is still playing by the old rules, treating the Fed as an independent actor with a clear mandate to maintain price stability. It is a comforting fiction, but it ignores the brutal reality of the nation’s balance sheet.

The truth is that the Fed’s mandate has been subordinated to a much more urgent and existential imperative: ensuring that the U.S. government can afford to pay the interest on its own debt.

Let’s dig Into The Following:

1. The debt and debt servicing is on an unsustainable trajectory. There comes a point when the math simply does not work anymore. Why at that point, the Fed’s tough talk on inflation becomes irrelevant!
2. Why the Fed is trapped. If it keeps rates high to fight inflation, it risks bankrupting the government and triggering a sovereign debt crisis. If it cuts rates to save the government, it risks unleashing a new wave of inflation. The Fed will always choose to inflate the currency rather than risk a nominal default. It is the only politically palatable option!
3. When Yield Curve Control is implemented, and it will, the floodgates will open. The Fed will be forced to create trillions of new dollars to buy up the government’s debt, and that money will pour into the financial system. The effect on hard assets will be explosive and we need to be positioned prior to this happening!
4. Why the transition to a world of fiscal dominance and Yield Curve Control is not a matter of if, but when. And when it happens, the fortunes that will be made in the hard asset space will be legendary!
5. Why the Fed’s tough talk on inflation is a charade. They are simply waiting for the right political moment to pivot, to dust off the WWII playbook, and to once again sacrifice the dollar to save the government!
6. The miners are the ultimate leveraged play on the coming monetary tsunami. They are trading at valuations that are completely disconnected from the price of the metals they produce. Why they are priced for a world of high interest rates and a strong dollar, a world that is about to be turned upside down!
7. The Fed is not in control. The politicians are not in control. The only thing that is in control is the math. And the math says that rates must come down, that the printing presses must be turned on, and that the value of your money is about to be destroyed. That’s why Trump is barking about the rates so loudly!
8. And why is not a gradual process. It will not be a slow, steady climb. It will be a stampede. It will be a panic. It will be a rush for the exits as investors realize that they have been holding the wrong assets for the wrong world. And when that happens, the price of gold and silver will not just rise; it will explode!

Metals and Miners

I’m wearing her around my neck as I post this, and my life continues to be Silver and Gold, but that’s another story! Happy New year to All from SNG!

Best wishes for the New Year to all the folk here.

Thanks for all the useful posts and charts recently and hope that 2026 will be happy, peaceful and prosperous year,

Don

A few minutes ago.. Now targeting Canadian miners.

🤙

If you take the national debt of 38 trillion and you divide by what is allegedly in Fort Knox and you say that 40% must equal the value of debt let’s call it 15 trillion for the sake of conversation to the 1.8 trillion allegedly in Fort Knox that puts gold at 58 thousand a ounce. That doesn’t include the unfunded liabilities, doesn’t include the school district 5 trillion bond fraud, that doesn’t include any portion of the derivatives that are out there. Start adding up all those and it blows past 86 thousand. The point is it’s pure upside and given where we are today where every 90 days being forced to print 1 trillion dollars to control the national debt. We’re printing money to pay the interest. This is nuts. Kabuki theater. Happy New year.

With a special thanks to Maddog!

Talk about inclusion!

Is the UN just a giant grift machine?

may all the troubles of 2025 go up in smoke.

Minnesota

Yep

Special thanks to Maddog or taking on  site especially with the situation going on around you.

Maddog and all who have helped with the running of the site for all these years.

I know I told you top was in remember. You comically said something to the effect okay I’ll drink the cool aid. It saved you a repeat of 08 and got your money back. You can write well. I should of copied you post in 08 with your 100 plus shares trying to sell them and were losing money on partial sales while they were still charging for trades and even penny stocks as they fell with partial fills  were costing even more to sell. Then you said as far as those stocks WHO BUYS 10 SHARES!!! That had me in stitches. That post should of went in the history books on the crash of 08. They could get a feeling of the nightmare unfolding.

A Happy and Prosperous New Year to you and all Tent members.

You got to know when to fold them!

I sold them in 2011 at the top, paid taxes to Canada, paid double taxes to the USA, and after that double taxation pocketed over $850,000. I kept a residue in 2011 that are now worth about $200K, but this time, as I have stated here, IMO the shares are rigged by the Derivatives and ETF’s and Super Computers like BlackRock’s ALADDIN, using your own shares borrowed from your own broker to short your own purchases to keep the share prices supressed or contained….so this time IS different. This time IMO it’s time to hold physical silver and gold…

and know when to walk away and know when to run! SNG 

Smart move. Many sold around  2011 but land and other tangible assets was more plentiful and cheaper to buy then.

You got to know when to hold them! I did!

And lots more too, but never close to that price again. SNG

“driven by profit and strategic necessity,”

Like WWII, banks were financing both sides. JPM still have a foothold in Russia. Ready for ‘expansion’, no doubt.

How did you do that,? I didn’t see that. I was delayed in finishing writing by a call but that was strange. Well at least you posted it.

JPM didn’t move to China it expanded.

• Market Opening: China removed foreign ownership limits in financial sectors (like futures and securities), allowing full control.
• Massive Growth Potential: China’s huge economy and financial market offered substantial opportunities for revenue and client services.
• Regulatory Support: Chinese regulators were helpful in granting licenses, fostering financial development.
• Client Demand: Chinese companies going global needed cross-border services, and international investors sought access to China.
• Strategic Positioning: Full control in key areas (futures, securities, asset management) positioned JPM as a leader among foreign banks. 

• While tensions existed, JPM saw strategic value in staying and investing, viewing China as a critical, long-term market, even as operations evolved.
• The bank managed risks but remained committed, seeing opportunities in the growing domestic market and increasing global financial flows. 

Can they make piracy legal within a month?

gonna be up tonight anyway, it will be interesting to see what happens about 9:00 p. m. (est) when shanghai opens up for 2026.  export restrictions in place, no foreign customers….?  (they never had many)

Another point although he didn’t mention it when he talked about the US breaking up because it’s so polarized now ” imo since they put Obama in office’ that they will do just the opposite of what the other side is doing. Demos on state offices are still doing it. Newsom has driven out oil and their pipelines to cities over importing foreign oil. They’re leaving. That’s supposed to help climate change by importing it instead right. Idiots

IMO  If combined with these shortages of critical metals to multi industries running the economy,  including medical and defence and the demos and their appointed judges denying and blocking oil, gas and mining causing enough trouble as is it would be economic suicide if they were put back in power.