Currency Corner by Kotak Neo
@CurrencyCornerByKotakNeo
Currency Corner by Kotak Neo
�� MACRO REGIME SHIFT | CONNECT THE DOTS ��
�� $200bn Mortgage-Backed Securities buying announced
�� $40bn per month liquidity quietly injected by the Fed
�� Credit-card rates to be capped at 10%
Three headlines.
One direction.
This is not policy noise.
This is financial repression taking shape.
�� WHAT’S REALLY HAPPENING:
The US fiscal deficit is already out of control.
Debt issuance is being forced into the short end, because rolling long would detonate long-term yields.
The old, price-insensitive buyers are gone.
BRICS+ central banks are net sellers of US Treasuries, using the cover of a strong dollar and FX intervention.
Only Japan remains — and even that is by necessity, not choice.
�� THE CORNER THE US IS TRAPPED IN
The US government is the largest employer
Runs the largest freebies programme in the world
All funded by the reserve-currency privilege
Cut the deficit ➝ growth collapses
Don’t cut the deficit ➝ someone must absorb the debt
There is only one buyer left.
The Federal Reserve.
⚠️ A LINE HAS BEEN CROSSED:
The dollar-debasement trade just received a major boost overnight..
Jerome Powell made an unprecedented video statement, revealing that Trump is using the legal apparatus to explore criminal investigation threats — the real objective being to pressure the Fed into aggressive rate cuts, despite inflation on the ground suggesting otherwise.
This is extraordinary.
Something usually seen in fragile economies — never in a country issuing the world’s reserve currency.
This is not subtle pressure.
This is open revolt.
But we are not surprised.
�� THE ENDGAME:
In the mature phase of de-dollarisation, the US government has very few choices left.
To backstop yields
To monetise exploding deficits
To continue funding dole-outs and freebies
�� Control over monetary policy becomes inevitable
Yield Curve Control — without naming it
Debt monetisation — without admitting it
Dollar sacrificed — to save the system
�� THE TRADE | REAL MONEY WINS
This is exactly what we have been saying since the election.
�� Fiat loses pricing power
�� Gold absorbs value
⚪️ Silver accelerates
A slow, controlled value transfer is underway.
When we compare Nasdaq and Dow against gold and silver, bullion has outperformed for the last 7–8 years.
That tells you one thing clearly:
�� Currency debasement is running faster than financial-asset reflation
This trend is likely to continue into 2026.
Cycles are ruthless.
And this one is entering its decisive phase.
Real money never lies.
https://x.com/amital13/status/2010635421819064384
As we have been been flagging in our research memos, the real stress is at the long end of the curve.
The Fed will eventually have to step in — because price-insensitive buyers are exiting.
Japan wants out.
Primary dealers want out.
BRICS+ began reducing exposure long ago.
This is where the real story lies.
As we have been been flagging in our research memos, the real stress is at the long end of the curve.
The Fed will eventually have to step in — because price-insensitive buyers are exiting.
Japan wants out.
Primary dealers want out.
BRICS+ began reducing exposure long ago.
This is where the real story lies.
X (formerly Twitter)
Amit Noam Tal (@amital13) on X
PDs Absorbing the Long-End Supply: Parabolic Rise to ATH in 2025… Unsustainable?🤐💥
Amid the exceptional confrontation between the Fed and the U.S. administration, a confrontation that revives the question of the central bank's independence in the United States and underscores
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