London | Brisbane. 7 September 2026.
This week saw more evidence that the rest of the world is preparing to dump the United States. With gold now the biggest holding of western central banks, watch where it’s moving to, not the price. The price will follow.
The DNB this week confirmed a 3 month long operation of selling its gold from the Reserve Bank of New York and buying the same amount in market ready bullion in London. Their press release mentioned “crisis” a dozen times whilst encouraging caution!
Gold has long been held in geographically optimised locations. London is protected by the Atlantic and the European continent whilst America has 2 huge oceans. Understand what they’re doing, not what they’re saying.
Gold is being accumulated at the expense of US Treasuries. The RBA has cut its USD holdings favouring Euros and sovereign funds have been slashing UST allocations. The EU has announced that the US$300b in EU savings will be redirected to internal investment in future. China has conversely been allowing its banks to buy more USTs but that is in the context of its currency getting too strong.
Back in the US, following a massive US$12b UST buyback last week, the Treasury is trying to sell US$61b 10 and 30 bonds at auction.
The Noose is tightening around the necks of Trump, Bessent and Warsh.
Podcast Notes
On September 9, the Treasury will auction $39 billion of 10-year notes. A day later, it will auction $22 billion of 30-year bonds. At virtually the same time, it will buy back $2–4 billion (or much more) of older, off-the-run bonds to “support liquidity.” Sell bonds with one hand. Buy bonds with the other.
RBA cuts US dollar reserves as central banks hedge against Trump
The Reserve Bank of Australia quietly reduced its target share of US dollar holdings in its foreign currency reserves from 55% to 45%, shifting the allocation primarily into euros. This adjustment reflects growing caution among global policymakers regarding US institutional stability, fiscal trajectory, and market volatility under the Trump administration.
Netherlands moves billions in gold to London in 'crisis preparedness' move
15 Sep 16 senate vote on clarity act
Gold and silver became legal tender in Texas yesterday under HB 1056.
New Zealand Dollar Drops After RBNZ Rate Hike
Possible FX intervention in USD/YEN by MoF Wed 2nd Sep
Treasury yields fall after top Fed official signals support for rate hold.
Christopher Waller stated he would support holding interest rates steady at the upcoming September 15–16 meeting, provided incoming inflation data confirms cooling price pressures.
Von der Leyen: €300 billion in European savings flown overseas every year, primarily to the US, will be invested in Europe from now on. All 27 EU states agreed to establish the S&I Union, a step toward the full Capital Market Union
Exclusive-Chinese banks purchasing Treasuries after wooing dollar deposits, sources say. It's so they can weaken the Yuan if necessary.
Manager of Norway’s $2tn oil fund proposes slashing US Treasury holdings
Trump says if the Fed doesn't cut rates, he'll stop trading with some nations
Study the movement of gold before Nixon took USD off gold standard