In a recent interview with Michelle Makori from Kitco News, Lynette Zang, Founder & CEO of Zang Enterprises, issued a stark warning about the global economy, focusing on the U.S. dollar and banking sector. Zang emphasized that the transition to hyperinflation has already begun. She asserted that the U.S. is moving towards a highly inflationary environment, with 2025 expected to bring massive market volatility and a loss of public confidence in the U.S. dollar.

Zang explained that the Federal Reserve’s own charts reveal the diminishing purchasing power of the dollar, indicating a downward trajectory that will likely lead to zero value. According to Zang, the public should expect more borrowing, more money printing, and greater inflation, as the U.S. government has not addressed the underlying issues of the economic system. She believes that political leaders will attempt to hold off any significant crisis until after the 2024 elections, but by 2025, the gloves will come off, and the financial system will face even greater instability.

In Zang’s view, the U.S. banking sector is in critical condition. She described it as “extraordinarily sick,” with every bank “underwater.” Even small increases in interest rates would not be enough to counter the deep issues banks face, she warned. Zang pointed out that the Federal Reserve’s data shows that the dollar’s purchasing power is on a clear path to zero, and this is a signal that hyperinflation, which technically refers to a 50% inflation rate per month, could soon hit. Zang, however, predicted that the actual inflation rate may exceed this technical definition, and the financial consequences could be dire.

Zang also highlighted the consolidation in the U.S. banking sector, noting that numerous mergers and acquisitions (M&A) have already occurred. She pointed out that 54 U.S. bank M&A deals were announced in the first half of 2024, and the pace is expected to surpass the 99 deals in 2023. In addition to mergers, Zang mentioned the alarming rate of bank branch closures, with more than 2,500 closures in 2023 and hundreds more in 2024.

On the topic of currency cycles, Zang explained that, like all things in life, currencies have predictable life cycles. She has studied these cycles since 1987 and noted that the current U.S. dollar is nearing the end of its life cycle. The inversion of the U.S. Treasury yield curve is one of the many indicators she follows, signaling an imminent recession. However, Zang warned that this recession will be far more severe than previous ones, and it will be accompanied by hyperinflation and a total collapse of confidence in the U.S. dollar.

Finally, Zang reiterated her long-standing belief in the importance of gold as a hedge against economic uncertainty. With the dollar’s collapse becoming more imminent, she advised people to prepare by turning to gold, which has historically held its value in times of crisis. She also discussed the role of gold in maintaining economic stability amid the broader shifts in the global monetary system.

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