Secretary of the Treasury Scott Bessent and famed investor Stanley Druckenmiller worked for George Soros during his famous coup of the UK pound crisis back in 1992. Druckenmiller has since gone on to be an independent hedge fund manager with one of the best records on Wall Street spanning several decades. Scott Bessent’s independent hedge fund closed because of poor performance during a period of record growth in the stock market and his second attempt did not fare much better.
Kevin Warsh was in college at the time, but, after stepping down from his job as Fed Governor, he joined Druckenmiller’s firm as a high-level analyst. This lucrative position along with his marriage into the Estee Lauder fortune essentially made him a billionaire, and that’s how he also knows President Trump. He has had a long-running relationship with Bessent as a protégé.
Druckenmiller recently criticized Bessent in the Wall Street Journal for his latest move for trying to mask prices for US bonds against the reality of markets. And that would be considered a losing proposition according to the playbook of their 1992 bet against the British pound. Druckenmiller is essentially right and signals to the market that the Treasury and Trump want a lower dollar. This aspect of the Trump agenda spells a lower dollar versus other currencies and higher prices for US consumers.
My modeling indicates that many of George Soros’s successes that have made him a multi-billionaire philanthropist for various social—and socialist—policies are attributable to insider information, personal contacts with major policymakers, and possibly insider dark actors. It would seem that George has his people in all the right places!
Kevin Warsh’s nomination occurred on January 30, 2026, and that’s when gold first suffered an historic single session drop, plunging from nearly $5,594 to $4,745, roughly 14 percent of its value in a matter of a couple of days.
Then, of course, on February 28, after Gold had made a significant recovery to $5,311, Israel and the US started a Pearl Harbor-style attack on Iran, plunging the Middle East back into war. Gold retreated once again over the summer to less than $4,000 an ounce with the psychology of gold buying broken and gold beaten down by repeated US attacks.
The summer was the time to buy gold for many players like China and many unknown strategic investors who were not already in on the historic rise in precious metals prices.
Secretary Bessent, on July 31, 2026, made his infamous trade of selling euros for Japanese yen, and gold prices suffered a sharp immediate multi day drop following currency intervention. While this opened a small window of opportunity for would-be gold buyers, it did almost nothing to help the government debt crisis in the US or Japan.
In fact, by acknowledging the problem so publicly to markets while simultaneously doing so little to stem the market direction and nothing at all to solve the underlying problem, he set up significant market expectations that there will be significant market sell offs of US government bonds and that the Treasury will have no real plan or no real intention of addressing the issues expect in a superficial way. This rings true of the UK British Pound debacle of 1992.
Then Secretary Bessent decided to buy or at least announce the purchase of long-term US government bonds on August 15, after a severe sell-off in the fixed income market pushed the 30-year treasury borrowing cost to a nineteen year high of 5.31 percent. He stated that current yields were disconnected from economic fundamentals and that liquidity in the 30-year bond was dangerously weak. And he announced purchases that doubled the recent normal purchases to $4 billion per operation. Then it was announced that it could be more than $4 billion per issue.
Plus, there was other activity in the buying window with a massive $12.5 billion dollars buyback operation started just recently in the short-term debt market and in the long-term debt market for government bonds that would continue from September 9 all the way to November 4, just prior to the midterm elections.
To be clear, these operations are indicative of a political calculus, a purely short-term stop-gap to keep markets glued together. It’s really just moving debt around to keep markets happy before the election given that the Fed cannot cut rates in an environment where inflation is getting worse for voters. It’s essentially using your credit card to pay your mortgage payment.
This in no way represents the government paying down on the deficit or national debt. If not for the bubble in the economy, there would not be enough money in the Treasury to make even these token adjustments.
It could be that the government bond market could tumble after the election, this would cause a big upward spike in interest rates, and this would send the stock market much lower.
Kevin Warsh had his hands tied at Jackson Hole on August 28. He would like to cut interest rates to help his new boss but given the high inflation statistics and the tenuous status of the US government bond market all he could do was act like an inflation hawk. During his speech at Jackson Hole, he made several hawkish statements that the Fed was responsible for this inflation, that it had work to do, uh, and that the short-term data, which was pretty good around that time, was not indicative of long run trends, meaning that he saw more inflation to come, and that financial conditions were loose in the economy, all indicating a hawkish outlook on the part of Kevin Warsh.
And then, of course, he made those clownish statements, three statements about hikes, where he wasn’t talking about interest rate hikes directly. He was talking about Fed officials taking hikes around the Jackson Hole area, trying to rig markets essentially the way President Trump does by making statements that are picked up by artificial intelligence and the trading algorithms, and that actually move markets. And in this case, it worked as well, amazingly enough.
The CME FedWatch tool estimates from before to right after those clownish remarks from Warsh that rate hike probability increased from 35 percent to almost 70 percent.
So, these men are not the US financiers of the old gold standard era. These are the types of clownish financiers of the fiat money experiment who are rigging markets, playing games with the US economy and your future, all the while, in all likelihood, profiting for themselves or maybe their friends or their former colleagues.
