🔴 Bond Crisis IMMINENT? Gold Preparing To EXPLODE? | Eric Yeung

本站收录: 2026-05-22

[00:00:00]But given the situation that the US is in right now with the um war with uh with Iran and the fact that uh things are blowing up in the bond market, I just don't see how he can um you know keep um keep the situation going without implosion without um you know also conducting quantitative easing. Now Denny there's there's a way to do that. There's a way actually there's an alternative to quantitative easing >> and the alternative to that is to revalue the US Treasury's 8,133 metric tons of physical gold.

[00:00:54]You're watching Capital Cosm. My name is Danny. My guest today is Eric Jung. It is May 21st, 2026. Eric, thank you so much for coming on.

[00:01:06]>> Well, thanks Denny for inviting me back to your show.

[00:01:09]>> Yeah. Well, let's just dig right into the data here. I'm going to pull up a chart of gold. Looks like gold has been consolidating since the beginning of February. Just really high level um prognosis here, Eric. Where are we when it comes to the metal space? Looks like gold may have we'll see if this is a double bottom uh right here. One, two.

[00:01:33]Uh but it looks like it's continuing to consolidate. Where are we today with gold?

[00:01:39]>> I think uh there are two forces at play here with um with with gold. uh one is of the um of basically non US ally countries like China, Russia um the other bricks countries etc. if they can, they are reducing their US Treasury bond holdings slowly or in some cases they're doing it pretty fast like China and they're increased steadily increasing their um physical gold holdings. So that's that's one force in the um in the go in the gold space.

[00:02:24]And then the other force that is pushing the gold price here are these uh po potentially these GCC countries and institutions within these countries that are really tapped out right now because of the situation at the um straight of Hamoose. They probably have a lot of debt they have to service and with the significantly reduced oil revenues because of the let's let's just be honest 90% shutdown of the street of Hamoose by Iran.

[00:03:04]>> Mhm.

[00:03:05]>> They are really you know looking to get their hands on US dollars. So what do they do if they if they if they don't um you know want to tap into their swap lines with the US um with the US government, they would um potentially sell some of their physical gold. So that's that's why like you know I think that explains the uh lengthy consolidation that we are witnessing um with the gold price and the fact that we don't know you know me and you talk almost every day Danny and we're looking at this thing and we don't even know which direction it's going to go >> tomorrow. Yeah.

[00:03:54]>> Yeah that's it.

[00:03:55]>> I I pulled up a chart here on the DXY and we're going to look at uh these various moments here. So, here is when the war started. This is at the very end of February, at the very, very beginning of March. And you'll see we kind of moved all the way up here, and it began selling off. It topped out at the very beginning of April. This is when the ceasefire that we've been enjoying the last month and a half or so began. And ever since then, uh, the DXY dropped down and has been pretty much moving sideways. This is exactly what you explained here. Uh during the Iran war, countries were moving into the dollar.

[00:04:36]At the same time, going back to the gold price, this is when gold sold off. You can see it right there in March. So, I mean, what you're saying perfectly explains everything that's uh happened, especially the way it looks like on the charts.

[00:04:51]>> Yeah. I mean, it's not over. Um, I think if the situation deteriorates in the Middle East, we might see another retest of um 4,200 dollar gold or or maybe even 4,000.

[00:05:09]I actually said this in another interview, in my Chinese language interview. Um, I guess um two, three weeks ago, I said that. So, I I fully expect that to um potentially happen.

[00:05:27]>> Why 4,000? Do you see any like major support at 4,000 or why?

[00:05:32]>> I don't like I mean I I just think, you know, because we we did go uh all the way down to 4,200.

[00:05:40]I think it's possible to go back to 4,200 and maybe, you know, um dip a little bit more than that, which is 4,000. So that's that's where my numbers come from. It's not uh written in stone for sure. It can't be below 4,000. I mean like we no nobody knows how badly this situation is going to going to get and and the fact that um you know these swap lines are pretty new. We discussed that new in the sense that a lot of these swap lines and standard repo facilities were set up after the uh COVID crisis in 2020.

[00:06:22]We really don't know um how effective they are when um push come to shove. I mean like of course they're there um US allies can uh you utilize them but uh in practice are they do they perform really well? Do they um you know you know uh react immediately?

[00:06:51]>> You know that's yet to be seen. That's yet to be seen.

[00:06:54]>> That's a great question. One of the key reasons Iran is striking uh the UAE is because uh the UAE and you know the rest of the Gulf countries have been in a silent debt crisis you know since COVID uh when oil hit $6 a barrel. So at that time their revenues just dried up. So they had to take loans and they haven't been able to fully service the debt. And now three months into this war, the straits are still closed. They still can't generate the revenue to service the debt because they can't pump the oil out to their customers. And and so you're really creating conditions for a for some sort of debt crisis that could metastasize into a banking crisis that could metastasize into a some sort of contagion that affects the European bank. So if these swap lines are not in place or not as robust as we're being told, then uh Europe is most likely the most effective. But I mean this would create some sort of global contagion.

[00:08:00]>> I agree. Um yeah, it can go both ways. either the swap lines experience a lot of hiccups meaning that they don't go um smoothly or they go um smoothly and um and essentially what it becomes then is basically infinite quantitative quantitative easing is another form of quantitative easing essentially >> yes >> except it's foreign in this case so um you know how the swap lines work theoretically is that um let's say these GCC central banks they need uh US dollars they would swap their currencies with the Federal Reserve for US dollars like that's just one sentence simple explanation is of course like you know the way they actually do is more complicated than that >> but my point being is if it goes smoothly and this happens like the Fed would put all that foreign currency on its bonding sheet and it will print US dollars and give it to these GCC or foreign central banks.

[00:09:23]So like like back to what I just said is just basically quantitative easing infinity, >> right? Which means if we get to that phase theoretically, shouldn't the US dollar be devalued at that point? Like I mean, of course, not measured against the currencies that are being swapped, but against other currencies that are not being diluted, and of course against um things like gold and silver.

[00:09:59]Yeah, and we we just finished looking at the charts here. DXY is still hovering around 99. Hasn't really dropped seen any >> because we're not at that stage yet.

[00:10:08]We're not at that stage yet. I don't think um you know they're really stepping on the gas on these swap lines.

[00:10:16]I think they're still trying to they're hoping that this thing is going to de deescalate and um some sort of normaly will come back in the region.

[00:10:32]Well, uh another clue we can look at is 10-year yield that has been also spiking higher which is not good for the bond market. Uh which means bonds are getting sold off. And if we zoom back a bit from 5 years ago, you can kind of see we've been consolidating in this zone and it looks like we may have broken out in bond yields. Uh what does this imply, Eric? The last time um you know bond yields broken out I believe it was um >> Ukraine war >> Ukraine war 2000 well well like I mean that broken out a bit but like it really broke out in 2023 during that Silicon Valley bank implosion situation if you remember.

[00:11:25]>> Yeah. Here's the larger trend. Here's the here's a downtrend from 1980.

[00:11:30]>> Yes.

[00:11:31]>> Um and you can see here it broke out >> April of 2022, like spring of 2022. I think that's when the Silicon Valley Bank stuff happened as well, didn't it?

[00:11:40]Or was it 2023?

[00:11:42]>> Yeah. Um 22 23 around that time.

[00:11:45]>> But anyway, my point being is that um they immediately reacted with um you know, not kill ye kill ye.

[00:11:56]That's what they did.

[00:11:58]Um, so I just it's very difficult for me to see how they can hold this thing together >> without doing something within the next quarter. meaning that um potentially you know Welsh the new the new Fed chair may actually cut race kept the race where they are cut it and um you know potentially might um start kill again although he said publicly that he's really against um quantitative easing. he want to um reduce the size of the first bid sheet, but given the situation that the US is in right now with the um war with uh with Iran and the fact that uh things are blowing up in the bond market, I just don't see how he can um you know keep um keep the situation going without implosion without um you know also conducting quantitative easing. Now Denny there's there's a way to do that. There's a way actually there's an alternative >> to quantitative easing and the alternative to that is to revalue the US Treasury's 8,133 metric tons of physical gold from a statutory value of 42.22 22 US per troy ounce to a value that is closer to the actual market value of gold today.

[00:13:52]And I've done this before. I you sent me a good chart on this. Let's go and take a look at that one. So this is a chart of gold from 1970 to 1980. And as you can see here, gold was originally valued at $35 an ounce up until 19 or sorry uh uh at 1971.

[00:14:11]Then uh December of 1971, a few months later, it was revalued at $38 an ounce.

[00:14:16]And then it was finally revalued at $422 an ounce in 1973.

[00:14:24]But as you can tell, we start off at $36 and then by the time they revalue this thing to $42, we're at $97.

[00:14:33]And then you fast forward a few more years and you're at $600. So if they do revalue gold, I mean, would we anticipate seeing something similar to this? Could the gold price really get that wild and are >> potentially because they they are essentially backstopping the gold price.

[00:14:57]That's what they would be doing if they revalue the US Treasury gold to a you know closer to mark to market price. But more importantly than um let's say they revalue um their 42.22 22 US per troy $8,133 tons of gold to let's say $4,000 because as as I as I explained back in the 70s they they didn't do market they did it below slightly below and the reason for that is because they wanted to keep the physical gold flows neutral um so they do it below and um I I would assume that If they do it this time, they would do it below at let's say $4,000. If the price of gold is above 4,000, if they do it $4,000, they actually they would be able to get um one around $1 trillion from the Fed.

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[00:17:31]>> $1 trillion, but Yeah, but let's put this in perspective.

[00:17:35]Uh, the US debt clock has a debt at $40 trillion. So even I mean a trillion dollar sounds great, but in the grand scheme of things, it's it's still still not enough.

[00:17:48]>> Well, they can also issue uh US Treasury gold bonds and they can get another trillion dollars out of that. So in total, $2 trillion. So that's about a that's all that's a little more than a year's worth of the federal budget deficit.

[00:18:05]>> Yeah. But the point is like a lot of people miss this Denny is that if they do this is not to wipe out the um US national debts all at once magically.

[00:18:17]That's not the point. The point is if you can pull up the chart that I gave you um explaining it's actually infographic explaining the um impossible debt situation that the um US government is in.

[00:18:36]>> All right, this one.

[00:18:38]>> Yeah, this is the one. If you can make it bigger for your audience.

[00:18:46]So, yeah. So anyway, right now the US is paying around $1 trillion US per year um for the interest on payment interest on debt, sorry, interest on debt payment is1 trillion US dollars per year as of right now. Of course like as the um as the debt increases this number also increases unless of course they cut rates significantly.

[00:19:19]Now if you look at the breakdown is on the right bottom side.

[00:19:28]Yes.

[00:19:30]So their deficit is actually $1.9 trillion dollars this year, projected this year.

[00:19:40]>> Mhm.

[00:19:41]>> So remember I said if they do the gold revaluation they get one trillion and um if they do the gold bonds they get another trillion.

[00:19:52]Well, you know, this will allow them to, you know, first of all reduce the debt load and also enable them to um on at least on the accounting side, they will essentially wipe out their official deficit for 2026.

[00:20:16]So instead of like you know thinking that these people are trying to solve all their problems in one go, I think you know what I just told you if they were to do it would give them enough road to kick the can down the road.

[00:20:39]>> Make sense? That's that's I think their >> that's the goal.

[00:20:44]>> I think that's the goal. I think that's what they want to do. And um if they actually do that, they might actually be able to um you know, jack up race a bit because they have some room at that point.

[00:21:02]>> How much time does this buy them? Do you think >> couple years maybe if they like blow up their expenses? Yeah. enough time to get the all the data centers operable and get all these uh um AI models working to boost productivity enough to escape the uh to escape the um the debt spiral. Maybe that actually might that actually might be the plan, Denny. Like just to buy a couple years, >> you know, this would do it because this wouldn't like this is something on their balance sheet that is actually of value that they can um use without getting further into that or you know um ballooning the uh Federal Reserve's bonding sheet.

[00:22:01]So they can do this or they can just, you know, like I said, kill ye infinity or they can do both, Denny.

[00:22:10]>> They can do both.

[00:22:12]>> So >> they certainly could.

[00:22:13]>> Yeah.

[00:22:16]So I'm interested in getting your take on this because you live in Hong Kong, but you look at the uh data center buildout in the United States, it's looking like it's going to be around 5,000. They're building 5,000 data centers as we speak right now. Some of some of them have already been built.

[00:22:34]Um, and others are are in the process of being built. Um, but the population of the United States is like between 300 to 400 million. In China, the population is what 1.2 billion, 1.1 billion, something like that.

[00:22:47]>> Yep. Something like that.

[00:22:47]>> And and you guys or China has 500 data centers or so built or in the process of being built. And of course, you know, there's the, you know, you guys have the grid and everything else out there to take advantage of that. But do you see the mismatch here? You mean we have you have three times as much in population, but we have 10 times as much in data centers. Uh why do you think that is?

[00:23:16]Why why why are we building that many data centers here in the United States?

[00:23:22]Well, um you know, if you want to go down the rabbit hole, maybe the um maybe the US is potentially planning to um utilize this these data centers and the AI and uh work with companies like Palenteer to effectively turn the US into a police state.

[00:23:54]>> Yeah. But you still cameras everywhere.

[00:23:57]>> Yeah.

[00:23:58]>> Does that require Does that require 5,000 data centers? I mean, >> watch you guys 24/7. Maybe >> is more spread out than China.

[00:24:07]>> But doesn't China do that?

[00:24:08]>> Doesn't China do that with only 500?

[00:24:11]>> China doesn't. Um, but as with anything in the US, like the like the Pentagon, you guys all always overspend on stuff.

[00:24:24]You know what what it takes for China to build, let's say, a cruise missile. It takes you guys uh the US five, six times the amount of money. So maybe you know another possible explanation is just um all these data centers being built is part of the uh tech bubble that is happening to keep the money flowing.

[00:24:53]I seem possible.

[00:24:56]>> Did you speak speaking of AI and data centers, let's talk about the components that goes into building these data centers in this grid and that is the commodities complex.

[00:25:06]Jeff gave an interview. He's been Jeff Curry's been going around doing the media rounds lately and he's been talking about this. I'm sure you've seen a number of his interviews. We've shown a number of his interviews in past episodes recently on this channel. Um but uh for those who don't know he's the ex Goldman Sachs comm head commodities trader and he's basically been saying that you know people are looking at the AI play purely from an from from an AI company perspective but uh what's missed is the key components the molecules uh the rocks um the fuel that will go into powering and creating these data centers to begin with. Um, is that another big play that you're looking at? Eric, what what do you what do you think of his recent comments? Um, if you did, >> first of all, first of all, Danny, I agree with um Jeff 100%. So like you know I don't know if you watch his videos in detail but he talks about how there's a mismatch right now with the um the need for these commodities and the super low valuation of the miners that actually extract these commodities from the earth in the US in Canada and also um in the American continent.

[00:26:28]So I think it's a great opportunity.

[00:26:30]Like I own a company called Hercules Metals.

[00:26:35]>> It has I believe um the best corporate deposit in in the American continent and possibly the entire world. Certainly the American continent.

[00:26:50]And um it's sitting at something like um 200 the 150 million200 million dollar market cap is it's basically just you know the market capitalization of these companies uh grossly under their true value true values. So I like in that sense I agree with Jeff because like like a lot of the interviews he go on he keep going on and on about that about how there's a great opportunity because you're essentially buying stuff that is um in some cases um you're buying something that is that should be 10 times you know the worth of what they're selling it to you right So you have a 10x potential for some of this stuff. So in that sense I agree with him and and like um it's the same thing with the energy complex. I'm talking about base power uh uranium.

[00:27:57]>> Mhm.

[00:27:57]>> You know like I know you own a lot of uranium miners as well. I do as well.

[00:28:02]And um I think the uranium story is is not finished because of this AI situation. I think yeah, you know, I said there's the AI bubble for sure.

[00:28:12]There's like like a bit of overinvestment going on in the AI space, but um it looks like AI is here to stay. It's helping me a lot. It's helping you a lot. It's helping everybody a lot. And I think AI is only going to get better.

[00:28:29]Therefore, um you know, this commodity super cycle as um Jeff Curry labeled it is probably just in the beginning.

[00:28:43]>> Yeah. Well, I'm looking at the price of copper today. $6.28. No one's talking about copper despite it making new all-time highs.

[00:28:51]It's uh >> Well, there you have it.

[00:28:53]>> To behold.

[00:28:56]So, anything else you want to talk about, Eric? I think we've covered pretty much the the waterfront here.

[00:29:03]>> Well, I think um you know, like I said to the audience time and time again, if you if they don't own any physical gold and silver, it's never too late to um start stacking uh dollar cost average because we're in this consolidation phase. And um just hold on because um like I said, gold might retest um $4,200 and silver might retest $64 that we saw I guess a month, two months ago. Yeah.

[00:29:38]>> Interesting. Well, let's pull up silver here for a second. I want to show the audience the silver chart. I mean, it pretty much been doing nothing ever since this big crash in end of January. If you take that out and just look at this, it's just been pretty much moving sideways. There's really been no trend to silver. Uh, no rhyme or reason. $75.

[00:30:02]So, we're just here waiting for the other shoe to drop on silver here. It looked like it was about to break out um a few week a couple weeks ago, but guess it retesting, but uh yeah. All right, Eric, thank you so much for coming on, my friend. Uh where can people find you if they want to see more of your work?

[00:30:23]>> Well, um they can find me on X at King Kong9888 or they can actually, you know, find me on Substack as well. It's the same handle.

[00:30:34]>> Awesome. We'll have the links to your X account and Substack as well in the description box. Be sure to check it out everyone. Hit the like button if you haven't already. Subscribe to the channel to help support us grow and get pushed in the algorithm. And if you'd like to add into your gold and silver stack, consider becoming a member with our good friends over at the Boolean Standard Pro. You pay 35 bucks a month and you get access to gold and silver pricing at wholesale pricing. So, if you buy enough gold and silver that it pretty much pays for itself. It's a it's a no-brainer deal. Check it out. link in the description below. We get you get 10% off uh your your first month. And um yeah, check us out on on capital.sups.com.

[00:31:12]Much appreciated everyone. I I will catch you all next time. Thanks for watching. Bye.