The massive credit bubble since the 1980s is poised to burst, potentially causing a tsunami-like impact on the financial system, spreading from the gold market to derivatives and the entire credit structure.
Gold’s enduring qualities as incorruptible, identifiable, and desirable have made it the preferred form of money for 3,000 years, contrasting with credit as a promise to settle later.
The Bretton Woods system (1944-1971) pegged the dollar to gold, with the U.S. holding over 50% of above-ground gold, but excessive credit expansion led to its collapse.
Since 2021, approximately 2,200 tons (10% of global reserves) have been delivered on the COMEX futures market, indicating a significant shift towards physical gold demand.
A gold price surge to ~$2,860/oz (2021-2025) is driven by COMEX delivery demand and geopolitical tensions, despite limited media coverage.
Central banks, including India, Russia, Hungary, Poland, and Germany, have been increasing gold reserves and repatriating gold since 2008, using it to revalue accounts amid rising geopolitical risks.
China’s gold reserves are estimated to potentially hold 30-40% of global above-ground gold stocks, accumulated as a defensive measure against perceived Western economic collapse.
Russia, with low debt-to-GDP (<20%) and high oil and gas exports, could potentially adopt a gold standard to challenge the dollar’s dominance.
Tariffs, as proposed by Trump, could disrupt global supply chains, increase consumer prices, and reduce American business efficiency, reversing the benefits of free trade.
Since the 1980s, governments have manipulated inflation statistics to reduce reported figures, as rising prices are a cost to governments when many things are index-linked to inflation.
The primary purpose of interest rates is to manage currency exchange rates, not economic outcomes as central bankers claim.
The US Federal Reserve faces a difficult choice between continuing current monetary policy or raising interest rates to protect the currency, with debt-to-GDP ratios between 125-135%.
A credit collapse would lead to a stock market crash, rising bond yields, potential corporate bond bankruptcies, and negative impacts on the real estate market.
Gold ownership provides clear, undisputed ownership without reliance on third-party credit, becoming increasingly important during a credit collapse.
While Bitcoin’s limited supply of 21 million coins contrasts with governments’ unlimited ability to print fiat currencies, it remains a speculative asset driven by crime and bubbles rather than a true alternative to fiat currencies.
The US faces a serious debt crisis with public debt at 100% of GDP, projected to soar in coming years despite potential tax cuts and large budget deficits.
Massive debt accumulation over the past 30 years due to tax cuts and spending increases by both parties is deemed unsustainable, potentially leading to financial instability and conflict.
Addressing long-term fiscal challenges requires greater fiscal prudence, economic growth, and new revenues through tax increases to avoid financial instability.
The US must harness technological advancements effectively to develop real industries including electric vehicles, new energy sources, and infrastructure to address long-term needs and raise living standards.
Long-term fiscal policy design is crucial to address unfunded liabilities in healthcare and Social Security, which are projected to rise significantly alongside increased interest rates.
The US needs to plan against mega calamities such as droughts, storms, and forest fires while investing in technological advancements to meet future challenges.
The $500 billion Ukraine mineral deal offered to Trump by Zelensky in 2024 is a pivotal geopolitical maneuver aimed at securing US support for Ukraine against Russia.
A secret 100-year partnership agreement between Ukraine and the UK, signed in 2025, grants the UK control over Ukraine’s resources in exchange for $3 billion annual support.
The UK’s desperate fiscal situation drives their need for the Ukraine deal, enabling them to issue credit and fund reconstruction through British, European, and American corporations.
Trump’s potential use of Ukraine as a proxy against the UK and Europe, rather than against Russia, represents a significant shift in global geopolitics.
The next 9-12 months may see Russia becoming the guarantor of peace in Europe, with control over much of Central and Eastern Europe and a potential alliance with Germany.
The European deal for Ukraine, proposed by Sebastian Kurz, would use frozen Russian assets as collateral for European banks to finance post-war reconstruction.
The real axis of power in Europe is London and Paris, not the EU, as evidenced by their historical influence and current efforts to shape global order.
The EU is considered a sideshow in European geopolitics, with the London-Paris axis holding significant power and influence.
The US-UK relationship is strained, with Trump’s administration viewing the UK as a British intelligence asset involved in the Russia gate scandal.
The Ukraine minerals deal is worthless if signed before a peace agreement with Russia, as a pro-Moscow government in Kiev could render it null and void.
The British and European approach to the Ukraine deal is seen as delusional, ignoring Russia’s interests and security concerns in a power play to antagonize and destabilize Russia.
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