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Fed Preps Massive Bond Buying as Japan Dumps US Debt

Taylor Kenney - ITM Trading Dec 12, 2025

The Fed just ended Quantitative Tightening without telling you why. The truth? Foreign buyers are walking, debt is exploding, and the dollar is being sacrificed. Now we’re headed straight into QE, currency devaluation, and global loss of trust in the dollar.

Quantitative Tightening Ends, But Inflation Is Still Climbing

The Fed has been shrinking its balance sheet since March 2022, claiming it was to “fight inflation.”

But here’s the catch:

  • Inflation hasn’t dropped to their 2% target. It’s still officially 3%, and that’s excluding what we’ve already lost.
  • Real inflation has eaten away at 25% of your purchasing power in just five years—a number even Taylor calls conservative
  • The Fed still holds trillions in pre-2020 assets. So why stop now?

QT didn’t end because it worked. It ended because it couldn’t continue. Demand for U.S. debt is collapsing, and the Fed has no choice but to pivot back toward printing.

Debt Spiral: Too Much Debt, Not Enough Buyers

The U.S. debt isn’t just massive—it’s unsustainable:

  • $38 trillion in national debt and counting
  • Interest payments now exceed $1 trillion annually—more than our defense budget
  • Each day, the U.S. adds another $60 million in debt

But here’s the nightmare scenario:

  • Foreign demand for Treasurys is vanishing
  • Buyers are demanding higher yields to offset risk
  • Higher yields mean higher interest payments, which leads to more debt issuance, which requires more buyers

It’s a doom loop. And who fills the gap when foreign buyers walk away? The Federal Reserve.

Japan Bails Out. The Dominoes Are Falling.

Japan—America’s largest foreign debt holder—is walking.

Why? Because their own bond yields are rising, hitting levels not seen since 2007. Japanese investors are now pulling funds back home

  • This means less capital for U.S. debt
  • Which forces the Fed to restart QE
  • Which means more money printing

And every new dollar printed makes your existing dollars worth less.

This Is the Currency Reset in Real Time

What we’re watching isn’t normal.

This is the currency reset unfolding right before our eyes:

  • Loss of confidence in fiat
  • Rising inflation or hyperinflation
  • Currency devaluation by design

It’s happened before:

  • Venezuela
  • Argentina
  • Weimar Germany

The result is always the same: fiat currency becomes worthless. The only question is how fast.

Why Gold and Silver Are the Only Escape

Gold isn’t just another investment. It’s a lifeline in times like these.

  • Central banks are hoarding it for a reason
  • Gold has no counterparty risk
  • It can’t be printed or manipulated like fiat

Silver adds affordability and utility to the equation.

These are tangible assets for wealth preservation. They don’t rely on government promises or Wall Street schemes.

And while gold is up 60% year-to-date, its true value lies in its stability during systemic crises

What Comes Next? Protecting Your Wealth Starts Now

This isn’t fearmongering. This is reality.

The dollar is being sacrificed on the altar of debt and desperation. The Fed has chosen inflation over default. And you’re expected to sit still while your savings evaporate.

Don’t.

If you don’t already have a strategy that includes physical gold and silver, you’re exposed.

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