Tom Bilyeu

The whole thing happens essentially invisibly inside of the plumbing of the financial system.

These systems are created by incredibly sophisticated people over very long periods of time to deal with things exactly like this.

These kinds of loans happen all the time, when the system is working, that is.

But what happens if the bank says no when the importer calls to tap that line of credit?

Or they say yes, but only to a small amount.

Or they just defer for a month.

Then you're forced to sell whatever you can to get your hands on the dollars.

You open your books and you find the most liquid assets you hold.

Assets you can sell globally at any hour and convert to dollars fast.

Gold, silver, copper.

aluminum, Bitcoin, if you have it.

You hit the button and you do it in the early Asian session because that's when your trading day is open.

That is what forced liquidation looks like.

And that is precisely the signature we just watched play out across four different commodity markets over three consecutive days.

But the liquidations aren't the story per se.

They're the evidence of a deeper problem in the system.

A problem that is way too familiar for anyone that lived through 2008.

Asking why gold is falling is the wrong question.

The right question is what happened to the credit market?

Why couldn't these companies get the dollars they needed through normal channels?