The Fed's Game and the End of the Dollar
What we are witnessing right now is far more than just a market correction. This is the death throes of a system… We are in the middle of a process leading to the economic collapse of the American empire. The Federal Reserve’s 50-basis point rate cut is the clearest sign of their desperation. Even with this aggressive move, long-term bond yields continue to rise. But why?
Because the market no longer buys the Fed’s story. The rise in yields shows that inflation expectations have spiraled out of control. No matter what they do, the purchasing power of paper money is eroding by the day. The U.S. dollar is crumbling like a sandcastle, and central banks lack the tools to stop this collapse. Here lies the real danger: the only thing that gives value to fiat currencies is the market’s belief in them. Once that confidence evaporates, the reign of the dollar will come to an end.
Today, we are seeing home sales drop back to Great Recession levels. But this is just the beginning. A much larger recession looms on the horizon. The U.S. economy is more indebted than ever in its history—corporations, households, and even the government are drowning in debt. But who can pay off their debts? As interest rates rise, loans, mortgages, and consumer spending are being crushed. Even companies like Polaris, which sell outdoor “grown-up toys,” are suffocating in this era of "no money." The thrill of cheap Covid-era money is over, leaving behind a mountain of debt.
Worse still, U.S. household net savings have been negative for six consecutive quarters. This means that consumption exceeds production, a phenomenon we’ve only seen twice before: in 2008 and 2020, during periods of severe economic collapse. The American people are spent, producing nothing, only consuming. In fact, much of the production power has long since shifted to China and other Asian nations. National savings have vanished, while the government racks up $2.1 trillion in deficits over the past 12 months. Everyone is buried in debt.
And as for the business world? Office spaces are rotting. Post-pandemic, office leasing has plummeted to rock bottom, yet landlords still claim “it can’t get worse.” Believing that would be pure folly. Office buildings are vacant, and the retail sector is on life support. All of this points to signs of an impending collapse.
The American dream is over. Just as in the final days of Rome, the American empire is rotting from within. We're losing not only the value of money but also confidence in the system itself. The Fed, Washington, and Wall Street have been feeding us lies for years. But eventually, those lies will unravel. The world will break free from the dominance of the U.S. dollar, and a global economic shift will begin.
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