3 Sunday Morning Thoughts – September 27 Edition

It’s Sunday.

Alright, here’s what we do. Every Sunday I share a few thoughts with you, and other subscribers at Dollar Collapse. Sometimes we’ll talk about economics, sometimes recent events, and other times, life.

Here’s a thought for this morning:

1. Treasury yields keep climbing. Washington’s borrowing problem isn’t going away.

Take a look at the chart below.

Even after announcing federal fund rate hikes the 30-year Treasury yield reached 5.402%, which means Washington is paying an increasingly uncomfortable price for long-term money.

There’s also a warning at the short end.

According to one research firm, Helious, Thursday’s four-week bill auction drew $2.61 in bids for every dollar sold, down from $3.02 the previous week. Primary dealers absorbed 50.4% of competitive awards, up from 27%.

One auction doesn’t establish a trend. But weaker bidding on treasury bonds after Fed interest rates are propped up is a pretty eery signal.

All in all, rate hikes take time to restrain inflation. Treasury buybacks can help bonds trade more smoothly, but neither eliminates the government’s need to borrow.

And every government re-financing operation brings another opportunity for lenders to demand more yield.

2. Since the US Treasury announced it will be buying more long bonds in early September, Bitcoin has been rising. Gold is different, here’s why its price isn’t rising.

Bitcoin has slowly been moving up in price since mid-august, and more recently, it’s been taking bigger strides up.

Since the Fed announced Federal Fund Rate increases in mid-September the market has been picking up what the Fed is trying to put down. Inflation is here to stay. And the “tools” the Fed have to stop it will increase inflation, or break the economy. And the thing the government will use to pay for it, treasury bonds, are weak on demand.

At the same time, capital is flowing toward the fiat currency exit.

But, gold is different. The price isn’t going up… So here’s what’s happening.

For gold and silver, institutional capital is finally flowing into the gold and silver miners themselves. Producers are taking massive profit on gold prices, while junior explorers are taking advantage of the lack of investment they’ve suffered from over the past two to three decades. So the long-term value on gold and silver producers is looking better than several years ago.

As a result, institutions are throwing some capital into the picks and shovels of the gold and silver industry, the miners. The good news for us is that we aren’t finished yet.

3. Using AI in your personal life is the best and easiest way to get acquainted with the potential that’s being created in the world.

On Wednesday Zuckerberg showed off the Muse Charm, a palm-sized gadget that clips to your keys and talks to Meta’s Muse AI agent. So far, it ships in December with no definite price point yet. One host on Bloomberg Radio called it the 2026 Tamagotchi, except this one orders things while you sleep.

The potential for devices like this is huge.

Amazon didn’t wait. Two weeks after Muse launched, Bloomberg reported that Amazon blocked it from Amazon.com over its terms of use.

The Verge reports:

Amazon blocks Meta’s Muse AI agent

“Meta’s Muse AI agent has been blocked from shopping Amazon on behalf of its users, GeekWire reports. A popup message started appearing on Sunday for Muse users saying that “continued access by an unauthorized AI agent violates Amazon’s Conditions of Use, to which our customers have agreed.”

According to GeekWire, Meta didn’t notify Amazon that Muse would access its store. Amazon also expressed privacy and security concerns over Muse failing to identify itself when it browses, and seemingly capturing customer credentials.”

However, here in Canada, Amazon.ca isn’t blocked. So Wednesday night I sent Grokbot, from Elon Musk’s xAI, to buy MadeGood lunch packs for the kids. It found three options, I chose the one I wanted and it checked out.

Here’s my point.

Whether you own a business or not, the best and easiest way to understand is to start using AI in your own life first. You can use my example, or you can use it as a calendar scheduler, or you can pull top posts from my X account every morning on a subject you choose.

That’s it.

Once you get a bit more acquainted, and confident with how to use AI, then you can into more sophisticated tasks involving two or more bots you set up for yourself. Maybe for your business, or businesses.

Have a great Sunday.