More central banks now plan to reduce U.S. dollar holdings over the next decade while increasing allocations to gold and the euro.
A net 30% expect to raise gold holdings, driven increasingly by geopolitical risks.
Meanwhile, demand for euro assets is rising, and AI adoption is accelerating among central banks, with the U.S. and China seen as the most attractive investment markets.
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• Debt funding: $121B issued in 2025—4x historical average. Another $100B expected in 2026.
• Needed revenue: $2T/year by 2030 (Bain) vs. current ~$20B.
AI revenue needs 100x growth just to break even.
FUNDING & CASH FLOW STRAIN:
Even cash-rich companies are borrowing heavily, reminiscent of the 1990s telecom boom.
Goldman Sachs warns: AI capex could consume nearly all operating cash flow, making companies reliant on bondholders.