🚨 CHINA HAS JUST INJECTED A SIGNIFICANT AMOUNT OF LIQUIDITY INTO THE GLOBAL ECONOMY
This is a significant occurrence.
China has initiated its most substantial monetary expansion since the outbreak of COVID-19, introducing vast amounts of liquidity into its financial landscape.
This could potentially trigger the next big shock in the commodity markets.
Certain analysts are now openly contemplating outcomes where:
Gold approaches a price in the five-figure range
Silver sets its sights on reaching triple-digit prices
Here’s the reasoning behind this.
The overall money supply in China (M2) has surged dramatically, currently exceeding $48 trillion when converted to USD — which is more than double the U. S. M2.
When China engages in printing on this scale, those funds are not merely resting in the stock market.
Traditionally, the money flows into:
• Infrastructure projects
• Manufacturing sectors
• Strategic reserves
• Tangible assets
In essence, China leverages its increasing money supply to obtain limited resources.
Now here’s the critical issue.
While the world’s largest consumer of commodities is boosting liquidity to purchase tangible goods…
Several significant Western financial institutions are said to be holding substantial short positions in silver.
Estimates indicate net shorts exceeding 4 billion ounces.
Global silver output annually is approximately 800 million ounces.
This implies that financial entities are essentially wagering against more than five times the annual mining capacity of the planet.
This represents a fundamental dislocation.
You have:
An increase in demand propelled by industrial applications (solar panels, electric vehicles, electronics) and currency depreciation…
Versus…
A futures market that is oriented towards declining prices that cannot be physically settled.
Should silver start to escalate rapidly, those short positions will face mandatory purchasing — and in a constrained market, such buying pressure results in a squeeze.
Not merely a price hike.
A reassessment of prices.
This is the foundation for supercycles.
Not from excessive enthusiasm — but from disparities between paper assets and actual goods.
The supply of money can be increased indefinitely.
The supply of commodities cannot.
And when central banks aim to devalue their currencies, tangible assets become the only reliable benchmark.
That explains why gold and silver are not considered “old money. ”
They serve as protection against financial excesses.
Major macroeconomic shifts do not announce themselves quietly.
They emerge when market positions are skewed, leverage is excessive, and trust is misplaced.
That combination is precisely what leads to market disruptions.
$RIVER
$SUI $XRP This is a commentary and should not be taken as financial guidance. Always conduct your own research.
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