Written by Bryan Lutz, Edtior at Dollarcollapse.com:
It’s Sunday. Hope you have a restful day leaning back into the dollar collapse thesis, and protecting your wealth with gold. Anyway, there are a few thoughts this week on how that thesis is playing out.
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 are three thoughts for this morning:
1. The one thing both Democrats and Republicans have always implicitly agreed on: “We need to eliminate the debt limit.”
The one thing both democrats and republicans depend on is the central banking system’s money printer. It allows them to stay employed by delivering their promises while not directly taking from the people they serve (ie. taxes).
When it comes to fulfilling those promises, there isn’t too much difference between the two parties. Historically, here’s what that looks like…
Democrats raise taxes corporations and individuals, but increase government spending, which raises debt levels.
Republicans lower taxes on corporations and individuals, but increase government spending more than democrats, which raises debt levels.
So, the debt limit becomes something they both agree on.
Take it from some of the loudest political voices today… like Elizabeth Warren and Donald Trump…
Here are the results:
Narrator: There never really was a debt limit. https://t.co/2Nin90vq4w pic.twitter.com/Yq2sEcD2l2
— James Lavish (@jameslavish) July 30, 2026
I wouldn’t expect anything to change any time soon. What we end up with is one more data point in the Dollar Collapse currency reset back to gold thesis.
2. Oracle’s risk of credit default is now higher than the GFC. Here’s what other AI hyperscalers look like.
Wall Street has a way of betting whether a company will pay its bills.
It’s called a credit default swap, or CDS.
Think of it as an insurance policy on a company’s debt… the more nervous lenders get, the more that insurance costs.
Right now, this chart has been getting a lot of coverage. It shows that insuring Oracle’s debt costs more than it did during the 2008 financial crisis.
And Oracle isn’t alone. The other AI hyperscalers are getting dangerously close to the same level of risk Lehman Brothers took on when they collapsed.
Nvidia, Alphabet, Meta, and Broadcom just set records of their own.
Here’s where they are at:
Nobody is saying these giants go broke tomorrow.
But they’ve borrowed hundreds of billions to build AI data centers, and the people who lent them the money are getting nervous.
The thing is, stock investors have been buying the dream.
If AI changes the world, a share of Nvidia could double, triple, or more…
So stock buyers can afford to be optimists. Their upside is unlimited, but lenders are different.
When you lend a company money, the best thing that can ever happen to you is that you get paid back, with interest.
That’s it. That’s the whole prize.
There’s no jackpot for lenders… only the risk that the money never comes home.
So lenders don’t care how exciting the story is.
They care whether the cash coming in covers the bills going out…
And right now, the people asking that boring question about Oracle are more worried than they were in 2008.
3. The currency reset back to gold is already underway. Take a look at how federal debt levels follow M2 Supply, and then look at gold.
Historically, gold prices have followed M2 Supply, but since the Federal Reserve started lowering interest rates gold has been showing that something is wrong with the debt system. It’s broken.
The Federal Reserve can no longer manage federal debt because of the cost to service that debt. To service the debt, they must print more money to pay for the cost… and the cycle goes on, exponentially.
So, if you go buy the historical cycle of money printing to catch up with federal debt levels you can almost tell the future of the system.
Debt and M2 Supply level will continue to increase.
The variable is the interest payment on that debt (which is now increasing exponentially).
Gold isn’t catching up to M2 Supply… it is telling us that the system is breaking, and when gold continues to increase it will reassure us that currency system reset is still underway.
It’s not long now.