China’s inflation arrived on an oil tanker and departed the moment the tanker gets cheaper.

The Ministry of Posthumous Warfare has achieved its most poetic legislative victory: the Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 86-11, a bill the late senator spent years failing to advance while alive and which passed only because he died — his death removing the final obstacle to the war-perpetuation he could no longer personally attend. The legislation authorises tariffs of up to 100% on the top five purchasers of Russian oil, extends economic warfare on Iran's energy sector, and arrives named after a man Trump himself observed was "more into keeping it going, frankly" — an epitaph so honest it may be the truest sentence spoken about Washington's foreign policy establishment in a decade.


https://www.blumenthal.senate.gov/imo/media/doc/2026-07-27_bill_text.pdf

They named the war-perpetuation act after the man who could only pass it by dying — a monument to a foreign policy that measures its own success by how many wars it keeps alive.

In a rare outbreak of common sense from Washington, Donald Copperfield has announced over $180 million to boost mining education — because someone finally noticed that America, the nation that wants to Drill Baby Drill and reshore its entire supply chain, had allowed its mining engineering programs to collapse to fewer than 600 students nationwide in 2023, down from nearly 1,500 eight years earlier. The Department of Energy is dropping $100 million to rebuild the workforce, the military is handing $32.7 million to the Colorado School of Mines, $25 million to South Dakota, and $23.6 million to Johns Hopkins for recycling — a genuinely sensible response to the inconvenient reality that China mines and refines an outsized share of the rare earths, lithium, graphite, and silicon that America needs for everything from semiconductors to advanced weaponry.

https://www.cbsnews.com/news/trump-mining-education-critical-minerals-180-million-dollars/

For once, Washington got the memo — America finally noticed it forgot how to dig the very minerals that power its strength, right as China holds the shovel.

🚨 WARREN BUFFETT IS SITTING ON BILLIONS... AND WHEN HE IS BUYING THAT'S THE SIGNAL. 🚨

While everyone else is chasing the market higher, Berkshire is keeping its powder dry. 💰
Why?

Because the biggest opportunities often appear when everyone else is forced to sell.
📉 Market correction?
💵 Cash ready.
🎯 Quality assets at bargain prices.

The question isn't whether Berkshire will deploy its cash...
It's what happens when it finally does.

Learn how to invest like Warren with The Macro Butler Financial Academy.

https://themacrobutler.com/financial-academy/

The consensus, ever fond of a dramatic headline, insists that China is hoarding gold to "destroy the dollar" — a thesis that confuses diversification with replacement and political ambition with market reality, and would require Beijing to be simultaneously plotting the dollar's demise while cheerfully holding trillions in dollar reserves and financing its trade in the very currency it supposedly wants to euthanize. The People's Bank of China added nearly 20 tonnes in July — its largest monthly purchase since October 2023, extending the buying campaign to a 21st consecutive month, with the pace accelerating from 160,000 ounces in March to 640,000 in July .

The motive is considerably less theatrical and considerably more prudent than the dollar-collapse crowd would prefer: after Washington demonstrated it could freeze Russian reserves with a keystroke, weaponize the clearing system, and treat sovereign debt as a political instrument, every non-Western central bank rationally concluded that gold — which cannot be defaulted upon, electronically frozen, or sanctioned by a foreign treasury — is insurance worth accumulating.

The delicious irony the gold-collapse maximalists refuse to grasp is that a country can reduce its dollar-debt exposure while the dollar strengthens, and gold can correct even while China buys — because capital chooses among available alternatives, not between perfection and apocalypse.

The Ministry of Global Provisioning has a minor logistical clarification: Turkey has begun restricting commercial ship traffic into the Black Sea after Russian and Ukrainian drones started sinking civilian vessels with sufficient enthusiasm to make the world's breadbasket a live-fire range — the Turkish-flagged MV Gulluk struck off Novorossiysk, the cargo vessel Nadezhda hit on August 3rd leaving three crew in serious condition, and enough others that Ankara has simply stopped issuing transit permits. Russia is the world's largest wheat exporter and Ukraine is Europe's breadbasket, and the mutual attacks on maritime transport during harvest season have pushed wheat prices to a two-year high in July — meaning the war cycle has now methodically closed its third global chokepoint, adding the Black Sea grain corridor to the Strait of Hormuz and the Bab el-Mandeb, so that the population may now experience simultaneous inflation in its energy AND its bread.

https://thecradle.co/articles-id/39277

When the same war cycle closes the world's oil chokepoints and its grain corridor in the same year, the coming scarcity of fuel and bread is not an accident of conflict — it is the arithmetic of it.

In a development that will surprise nobody except the London and New York bullion desks who have spent decades setting gold's price from thousands of miles away from where most of it is actually mined, dug, and hoarded, China has decided that being the world's largest producer AND consumer of gold while letting Western exchanges set the price is roughly as sensible as growing all the grapes and letting someone else bottle the wine. Hong Kong has now established a fully state-owned gold clearing company launching this year, plans to expand its storage capacity to over 2,000 tonnes within three years, and is deepening ties with the Shanghai Gold Exchange — a coordinated public-private campaign to relocate the centre of gravity of the global bullion market from the Thames to the Pearl River.

https://finimize.com/content/chinas-central-bank-is-moving-more-gold-to-hong-kong

When the country that produces and consumes the most gold finally decides to price it too, London's four-century monopoly on the yellow metal isn't being challenged — it's being quietly relocated one tonne at a time.

The Macro Butler is back on Asharq Bloomberg TV — and oil’s next move is UP. 🛢🔥

He returned to Asharq Bloomberg TV to deliver the energy call the consensus keeps refusing to price in: the geopolitical premium the market swore was “erased” is reloading, and the next leg for crude is higher — not lower.
Here’s the thesis:

⚔️ Geopolitics is driving structural supply shortages — from the Strait of Hormuz to the Bab el-Mandeb to the Black Sea grain and oil corridor, the war cycle is methodically closing the world’s chokepoints one by one.

🛢 Strategic reserves are draining fast — the US SPR sits at a 40-year low, and there is no emergency buffer left to paper over a genuine supply crisis.

⛽️ $100 WTI is not a ceiling — it’s the floor US E&P producers need to justify Drill Baby Drill. Until American shale gets that long-term price signal, the supply response the bulls are counting on simply won’t arrive.

The result? Higher oil, higher inflation, and the inevitable Trump Stagflation moving from forecast to front page.
📺 Watch the full interview on Asharq Bloomberg TV now.

https://themacrobutler.substack.com/p/interview-with-asharq-bloomberg-tv-1f9

🚨 STOP BUYING STOCKS JUST BECAUSE THEY’RE RISING. 🚨

A rising share price doesn't automatically mean a profitable trade.
The real opportunity is finding great businesses temporarily trading at a discount. 📉➡️📈
Quality + valuation + patience.
That’s where serious investors separate themselves from the crowd.

🎯 Join The Macro Butler Financial Academy to learn how to spot discounted quality before everyone else does.

https://themacrobutler.com/financial-academy/

In a milestone that the "energy crisis is over" crowd will heroically ignore, the US Strategic Petroleum Reserve has fallen below 300 million barrels for the first time since January 1983 — draining 6.1 million barrels last week alone, the biggest single-week outflow in nearly two months — meaning Reagan was in his first term the last time America's emergency oil buffer was this thin. The 250-to-300-million-barrel range is the operational minimum below which the physical integrity of the storage caverns becomes questionable, meaning the reserve is now working overtime to suppress oil prices while approaching the point where it can no longer be drained at all — a strategy roughly equivalent to keeping your car cool by draining the radiator. Oil prices, meanwhile, continue sliding on the "naive hope" that a Hormuz resolution will magically materialise, even as Iran's Parliament Speaker's advisor cheerfully announces Tehran has "completely ruled out" any negotiation with The Manipulator In Chief.

In other words: the paper market is pricing peace while the physical market drains toward empty.

What happens when the world’s “risk-free” asset stops being risk-free? 🏛💥

The Macro Butler’s latest piece for Hubbis dismantles the most dangerous assumption in modern finance: that government bonds are the safe bedrock of a portfolio. For eighty years, sovereign debt was treated as untouchable — and now it’s being repriced in real time, starting not in some fragile emerging-market periphery but in the developed world’s largest debtors.

The uncomfortable truth he lays out:
Japan is the first domino — 204% debt-to-GDP, the BOJ holding half of all JGBs, debt service already devouring a quarter of the budget, and a shrinking saver base that can no longer absorb the bill.
📉 A debt crisis doesn’t begin when debt is “too high” — it begins the moment a government can no longer refinance its maturing bonds at a rate it can afford. Then the spiral starts.
🥇 Capital doesn’t vanish — it migrates from paper promises into assets that cannot be printed: gold first, then silver, commodities, producers, and quality equities that own real capacity. The 60/40 portfolio is already obsolete.

As The Macro Butler puts it: a debt crisis is not an accident — it is the last chapter of a book a nation has been writing for years.
📖 Read the full article on Hubbis now.

https://themacrobutler.substack.com/p/hubbis-when-the-house-of-debt-falls

Ahead of a CPI print that the consensus has already pre-declared "tame thanks to housing disinflation" — because nothing says analytical rigour like knowing the answer before the data arrives — the Treasury sold $58 billion in 3-year paper in an auction so solid it was practically smug. Pricing at a high yield of 4.291% — up from July's 4.179% and the highest since February 2025 — the sale stopped through the When Issued by 0.5bps for the second consecutive time, with a bid-to-cover jumping to 2.712, the highest since November and comfortably above average.

Indirects took 64.24%, Directs a robust 24%, and Dealers were left holding a skeletal 11.7%, one of the lowest showings this year — confirming that the world will still lend the Empire money for three years with genuine enthusiasm, provided the maturity is short enough that inflation, war, and $40 trillion in debt remain someone else's problem.

A rock-solid 3-year auction the day before CPI proves only that investors will happily lend short — the enthusiasm mysteriously evaporates the moment you ask them to trust the Empire for a decade or three.