Rising long-term bond yields in the US, UK, and Japan signal the breaking point of the global debt bubble, with the 30-year bond threatening to break out above 5.1% in the US.
The current environment resembles a stagflationary setup, characterized by rising prices and low economic activity, similar to Germany in 1920-1923.
A debt trap is forming as the US economy enters recession, leading to higher budget deficits and soaring debt while revenue income declines.
Higher long bond yields will result in increased mortgage rates, making home ownership less affordable, especially for first-time buyers.
The collapse of the currency in Germany between 1920 and 1923 was complete, with one Reich mark fixed at 4 trillion to the dollar in November 1923.
The coming crash is predicted to be faster than past episodes due to instant electronic money flows, potentially devastating unprepared savers.
Gold and silver are considered ultimate safe havens, while fiat currencies are viewed as credit destined for destruction.
During periods of currency collapse, gold can be used to buy real estate, farmland, or as a means to hide from trouble.
The complete collapse of currency and economy in Germany in 1923 led to political instability, the rise of Nazism, and ultimately World War II.
The current situation is expected to be very damaging for virtually everyone, unlike past crises where some wealthy speculators benefited.
The US housing market is in a massive bubble with record-high home prices, 20-25% speculative purchases, and FHA loans replacing subprime mortgages.
The US stock market exhibits a massive bubble with price-to-sales over 200%, high price-to-earnings, and negative risk premiums.
Concurrent bubbles in real estate, stocks, and credit are poised to burst simultaneously, potentially triggering a downturn worse than 2008.
The Federal Reserve’s balance sheet doubled from $4.5 trillion to $9 trillion since 2018, fueled by monetary inflation and helicopter money.
Despite missing its 2% inflation target for 51 consecutive months, the Fed plans to slash interest rates while asset prices remain at record highs.
The Fed’s future rescue plan involves buying trillions in mortgage loans, corporate bonds, and junk bonds to prevent a credit crisis.
The US labor market faces challenges due to negative immigration and a 0.5% fertility rate, matching the anemic labor force growth rate.
The middle class has been eviscerated, with only the top 20% sustaining the economy through asset bubbles while the bottom 60% live paycheck to paycheck.
Rebuilding the manufacturing base is crucial, but increasing tariffs by 100%+ would be economically impossible to handle.
Abolishing the Federal Reserve and implementing a gold-tied monetary system could prevent inflation and debt by aligning money supply growth with GDP.
The Bureau of Labor Statistics overestimated job creation by nearly 1 million jobs in 2025, marking the largest downward revision in history and indicating no job growth during the Biden administration.
Stocks may initially serve as an inflation hedge when the Fed eases during bottoming inflation, but could face a “nasty hangover” as operating costs rise and profits decrease due to inflationary policies.
Central banks’ aggressive gold hoarding since 2023, purchasing over 1,000 metric tons annually, signals a shift towards hard assets like gold and crypto in preparation for a potential monetary reset.
The “only path forward” for addressing the US’s $35 trillion debt involves printing money through yield curve control and currency devaluation, as evidenced by gold’s breakout against major currencies.
To prepare for a possible monetary reset, investors should ride the bull market, allocating capital to inflation-benefiting assets like stocks, gold, and precious metals, before exiting stocks when markets begin to decline.
The US may address its debt by rewriting crypto and gold market rules, eroding trust in the dollar, shifting debt into a “crypto cloud” via stablecoins, and devaluing the currency, as suggested by an adviser to Vladimir Putin.
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