Transcription
The United States is currently carrying more than 38 trillion dollars in debt. And what makes that number extremely alarming is that foreign buyers are actually stepping away. Now, for example, China has been dumping treasuries for quite some time. Japan is another country that has been selling treasuries, and other major economies are doing the same thing as well.
And the truth is, by every historical precedent, the current system should already be under extreme stress and really collapsing at this point. Yet, the USA, the country, continues operating as if nothing is wrong, and financial markets keep hitting all-time highs while the real economy is deteriorating. So, the real question isn't whether the problem exists, because it clearly does, and that's visible in the data. It's how is the system actually still holding together at this point in time?
Because the answer isn't being discussed in mainstream financial media or by political figures on big media channels. And that's simply because they don't want the public to fundamentally understand the core issues and what's really going on underneath the surface in the monetary system. They want you distracted and focusing your energy on all kinds of narratives, and this is by design to strategically divert your attention away from the underlying issues and the changes happening in the monetary system. They want you focused on the wrong thing while the most critical changes in history are happening underneath the surface.
The reality is, the US is currently relying on the same debt management playbook it's used multiple times throughout history. All we have to do is look at history. It's the same playbook, just with a new mechanism. And yes, it involves blockchain technology and cryptocurrencies and stable coins, which we'll get to momentarily.
But as of right now, America's debt is growing by roughly $1 trillion every 100 days. That's insane. While interest payments alone now exceed $1 trillion per year. Now, that's more than defense spending and more than Medicare. So, mathematically, based on the situation, cutting spending is politically impossible. And raising taxes to make any meaningful impact in the debt situation is completely off the table, which leaves the central banks and the government with one viable option, and that is devaluation. And I'll explain exactly what I mean in a moment as well.
But it's worth noting that not too long ago, at the Eastern Economic Forum, one of Vladimir Putin's closest economic advisors, this guy is high up there, Anton Kobikov, he publicly outlined and explained what he believes is America's next move to deal with the unsustainable debt situation that the US monetary system is facing. And for those who are unaware, Anton, this gentleman, has been Russia's senior economic advisor for pretty much over a decade, and he has helped architect and build their economic strategy since 2012.
Now, what he claimed is that the United States is preparing to use cryptocurrencies, specifically stable coins, to pretty much devalue its debt and reset the system. And I'm sure you've seen that video online in the past. And many dismiss this as paranoia or even geopolitical posturing, just nonsense. But when you actually examine what he said, America's historical behavior, how the debt-based system really functions, and the current monetary system situation and the challenges that the system is facing, then by all logic, his theory fits a very familiar pattern that the US has used before in the past.
And for context, if we look back in 1933, Franklin Roosevelt confiscated gold at about $21 an ounce and then revalued it to $35 pretty much overnight, effectively devaluing the dollar by about 67% and making government debt dramatically cheaper for the US government to repay. This was strategic and it served their best interests. Then, fast forward to 1971, President Nixon took us off the gold standard, basically ending the dollar's convertibility and basically breaking the promise made to all foreign holders of US currency. And what's funny is Nixon even said it was an only temporary thing, but that was clearly a lie. And everybody that was paying attention at the time knew that. And that was a plan long in advance before the official announcement actually took place.
But since then, the dollar has lost nearly 90% of its purchasing power. So, what does that mean for context? Meaning what costed $1 back then now costs anywhere between $7 to $10 or more. And that wasn't any accident or unforeseen event that played out over time. It was inevitable, and they knew that. And it was simply systemic devaluation by design. They knew exactly what they were doing and they knew the implications down the road, but they had no choice.
And since 2008, the process has only continued under a softer label known as quantitative easing. They love to use complex jargon so you don't understand what they're doing. But that's when the system officially died. And since then, central banks cut rates to near zero for the first time in over 4,000 years of the history of interest rate cuts. Now, from 2020 to 2025 alone, the money supply has expanded by more than 40%, basically reducing the real burden of government debt. While prices for pretty much everything, houses, food, real things, energy costs have rose tremendously while they cut their debt burden in half.
But here's the key limitation that the monetary system and the central bankers are facing right now, and the banking cabal and the same architects who built the system, they understand this part that I'm about to explain. There are limitations now. First, inflation inside your own borders creates political pressure. They don't want that. They know that. They understand this. So when grocery bills rise, houses become unaffordable too fast, prices shoot up too fast, people start to notice and they feel the pinch and they pay attention, and citizens eventually start to rebel against the system if this isn't controlled properly, and they push back. So, that limits how much devaluation a government like the US or central bank can actually get away with domestically in a given period. So, they're being very controlled in the way they're doing this.
Now, historically, the US has been able to export some of that pain and inflation because the dollar is the world's reserve currency. So, other countries hold the dollar. So, that's what's meant by the phrase, if you've ever heard "America's biggest export is inflation," that's what it means. Because they export inflation because when the US runs massive trade deficits, which they're doing now, and the world does business in dollars, so they have to hold US dollars, its monetary excess doesn't stay at home in America. It gets pushed outwards to other countries, basically spreading inflation and price pressure globally through all other dollars held overseas to other countries. So, that's why we export inflation overseas.
And that advantage that the US once had to do that, the ability to export inflation abroad, is basically eroding right now. And foreign ownership of US debt has significantly fallen. And major buyers like China and Japan, for example, that I said earlier, have been steadily stepping away after decades of pretty much monetary dilution and a weaponized dollar. Now, that's why central banks globally have been significant net buyers of physical gold since 2009, and breaking records pretty much every year.
Now, before we go any deeper, if you're looking for a more data-driven, high-level, in-depth analysis of financial markets, cryptocurrencies, specific digital assets, and macro trends, and pretty much an informational edge, I share regular insights in my weekly newsletter and my financial market intelligence group, which you'll be able to find the link in the description below. And if you're a serious digital asset investor and you're looking for a simple, secure way to pretty much get exposure to crypto and digital assets, whether that's buying, selling, trading, or even rolling over a 401k into crypto with tax advantages, then I recommend you take a look at iTrust Capital. Do your research on them. Just take a look at them. It's a platform that I personally use along with a few others. They have a very clean interface. It's institutional-grade security, so your assets are protected if they are on the exchange. Over 80 plus digital assets, no monthly fees, and pretty much only a 1% transaction fee, which is much lower than many exchanges. Link is in the description below.
Now, moving on. This is where stable coins enter the equation. The Genius Act, I'm sure you've heard of it, was recently established pretty much as a legal framework for dollar-backed stable coins. And it requires that every stable coin must be backed by cash or US treasuries. Now, when someone buys USDT, like Tether, or USDC, another stable coin, the issuer is legally required to go out and buy treasuries, US treasuries. So, in other words, every stable coin issued must be matched by a high-quality reserve asset, is what it said in the bill, meaning by definition, in practice, US government debt.
Now, that requirement is basically written directly into the bill, into law. So, by design, as stable coin issuance grows, that means demand for US treasuries grows alongside it. The government has pretty much created a built-in structural buyer of US debt. And today alone, if you look at the data, stable coin issuers already hold more US debt than many major countries, including Tether. And adoption is basically accelerating. And we're seeing that across emerging markets, global commerce, digital payments, and now political frameworks being discussed publicly and put into place.
So, this is really where stable coins come into the picture because stable coins is the new engine for global debt absorption to keep the system going. They prop up the debt economy and pretty much act as a lifeline for the financial system that would basically otherwise be under far more pressure today, and that's why it hasn't collapsed yet. Basically, they're able to now spread the burden globally because of stable coins and keep the debt machine going as long as possible.
So, this mechanism solves two problems for the central bank and for the government. First, it replaces foreign governments as buyers of US debt. So, that's one problem checked off the list. Second, it distributes the debt across hundreds of millions of users around the world instead of concentrating it in central banks that can coordinate an exit. So, for example, someone using stable coins in Venezuela to escape inflation or for whatever reason, or somebody doing business in Cyprus trying to avoid capital controls who buys stable coins, becomes an indirect buyer of US treasuries, often without realizing it, because for every stable coin, you need treasuries. So, that's the little trick right there.
But there's also a political advantage to the financial planners, the central elites. Money printing is centralized and visible, and they know that because we track the data. Stable coins feel decentralized and private, privately issued. So, they look like innovation rather than monetary policy. So, it gives the government an edge. So, there's no single institution that you can blame or even an underlying mechanism that you can just point to because it's so complex, yet so genius. And that devaluation happens. Loss of purchasing power still continues. It just doesn't hit Americans though. It spreads globally among stable coin holders. So, that's their little mechanism there.
And this idea, this playbook isn't new. In 1985, if we look at the Plaza Accord, they deliberately devalued the dollar by 25% through basically a coordinated international agreement. Just study history and you'll see that the difference today is that no formal agreement is really needed. All you need is frameworks and adoption. And that's what we're seeing now. So, once stable coins are embedded into global payments and as tokenization continues to expand across global markets, which we're seeing now in slow motion, treasury demand becomes structurally guaranteed, built into it, and devaluation becomes easier to execute and also becomes guaranteed.
So, we're already deep into this phase of the cycle. We're seeing the frameworks, the clarity come together. But phase one was legislation and infrastructure, which was mostly completed in 2025. Phase two is regulatory clarity and adoption, which is basically accelerating now on the main stage, at least, even though decisions were made behind the scenes long ago. And whether it's through the next phase is some event or catalyst, whether it's manufactured inflation, a repegging, whatever it is, it will hit, it will be announced, and it will expedite the adoption process. Okay, that's how the phases will play out.
So, the pattern hasn't changed. 1933, 1971, 2008, and now. And the tools are evolving, but the strategy remains the same. And that's the key. The United States doesn't default on its obligations or its debt. And it doesn't truly ever pay them down either. It can't. It's impossible. It devalues them. That's their solution. And that's been the only viable option for decades. This time with a new mechanism.
Now, the architects of this system knew from the start when they built this system it was unsustainable. And now it's run its course. And you can see that in the groundwork, in the data, everything being laid out is leading up to a new currency system to replace the old one. New infrastructure first, then new currencies.
And ladies and gentlemen, the goal here isn't for me to be cynical or spread fear. It's awareness. Historically, inflationary environments reward those who position defensively before the move and actually position accordingly in the assets that are going to carry that value over, even as the system transitions. So, the key is awareness here. That means select digital assets, real estate, tangible assets like central banks are doing, physical gold, silver, quality companies and equities if you know how to select them, and genuine utility digital assets that will ultimately play a role in the new system. Be selective, be strategic in how you do things. But things are evolving fast, and if you're not paying attention, you're going to get chewed up.
Now, this is not financial advice. What I'm giving here is educational to help you build a plan that fits with your own situation and risk tolerance, but to give you a sense of where we are in the system and how things are unfolding. Now, if this has helped clarify what's really happening beneath the surface and make sense of all the complex things happening in the system, make sure you subscribe. I do appreciate it. If not, don't worry about it. I don't care, really. I just want to bring the information to all of you so you could get a sense of what's really happening and do what you can to protect your capital and position ahead of real currency debasement and stay ahead of the curve. Thank you for watching, and I'll see you in the next one.