In the last weeks the US hit India with massive 50 percent tarrifs. In response, the Reserve Bank of India (RBI) has reduced its holdings of U.S. Treasury bills while increasing its gold reserves. This strategic move is part of a broader global trend of central banks diversifying their foreign exchange reserves away from dollar-denominated assets
"Looks like we've lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!" Truth social, Sept 6 2025
Is this policy or biproduct?
Who cares?
It means goods in the US are more expensive, margins for US corporations are
depressed, growth slows. And, as Jim Grant says in the Interest Rate Obverver:
Jim Grant: A Multi-Decade Bond Bear Market Lies Ahead
You know who loves these economic conditions?
GOLD!
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