The US dollar’s purchasing power is expected to decline by 75% within the next 10 years, mirroring the 1970s when it fell by the same percentage while gold prices increased 30-fold.
To honor $100 trillion in off-balance-sheet liabilities and entitlements, the US government may need to devalue the dollar, similar to the strategy employed in the 1970s.
Despite anticipated reduction in US dollar hegemony, it’s not expected to substantially underperform against a basket of other currencies.
BRICS nations view US Treasury securities as a “deep and liquid lie” but trust each other even less than they trust the US, according to Rick Rule’s experience selling to global wealth funds.
The current precious metals bull market is following a familiar pattern, transitioning from the “best of the best” to the “best of the rest”, with the focus now on gold and gold equities.
The US faces a critical shortage of air defense missiles, unable to produce enough to significantly impact the Ukraine war’s outcome, while Russia and China’s combined manufacturing capacity outweighs NATO’s by a factor of 4.
Trump’s proposed 50-day deadline for Ukraine to end the war is unrealistic, as Russia’s terms are unacceptable to Ukraine, leading to a prolonged war of attrition.
According to Doomberg’s analysis of mapping projects, Russia is steadily winning the war of attrition in Ukraine, with the objective to occupy four key regions.
The 12-day war between Israel and Iran exposed vulnerabilities in Israel’s air defense systems, with Iranian missiles penetrating defenses after just 4 days.
British influence on US foreign policy against Russia is significant, with Russia blaming Britain for a drone attack on Russian air bases that targeted nuclear strategic bombers.
Despite appearing high, current oil prices are effectively subdued due to inflation, with the inflation-adjusted price being equivalent to $21 per barrel.
The equilibrium price for oil is approximately $55 per barrel, based on the landed LNG price in Europe of $11.70 per million BTU.
Long-term trends for oil and commodities are deflationary due to technological advancements outpacing resource depletion, making them increasingly cheaper over time.
The US President has significant influence over the Federal Reserve, with the power to potentially remove the chair under pretexts such as cost overruns on building renovations.
Jerome Powell, if not elected, should consider resigning as Federal Reserve chair, highlighting the tension between appointed positions and democratic accountability.
The monetary system requires exponential growth of debt to avoid collapse, as every dollar of debt is matched by currency issuance, ultimately leading to hyperinflation.
The Federal Reserve’s balance sheet has over $1 trillion in unrealized losses, making it technically insolvent under GAP accounting, though it uses a different system to defer losses.
Fed insolvency can trigger hyperinflation if currency is issued to cover operational losses or negative net interest, creating an exponential trend of liabilities exceeding assets.
Interest rates are not a central bank tool but a free market price, with artificial rate-setting causing malinvestments, bubbles, and boom-bust cycles.
The true interest rate is determined by the price of gold in the gold yield marketplace, established by Monetary Metals, marking the first freely-set rate since 1913.
Central banks’ delayed reactions to economic changes create positive feedback loops and systemic risk due to politicized processes and lack of understanding.
Fed insolvency will become critical when interest rates collapse, making its Treasury bond portfolio worthless and drastically reducing liability payments, likely by 2026.
Rising interest rates create systemic risk for governments and banks struggling to service debts, forcing the Fed to eventually lower rates to inflate away debt.
The gold standard represents sound money that can’t be debased, with Monetary Metals offering 4% interest on gold deposits, revolutionizing savings and finance.
Implementing a gold standard is an entrepreneurial bottom-up process, not a lobbying effort, with Monetary Metals growing exponentially and transforming the gold industry.
Central banks are hoarding gold while avoiding a gold standard, signaling a potential shift in monetary policy and recognition of gold’s value.
The only exit from unsustainable debt may be to inflate it away, even if it means crashing asset markets, highlighting the Fed’s limited options.
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