Tom Bilyeu

It's every bank independently making the same cautious, rational decision at the same time.

And when that happens simultaneously across the entire global system, the Eurodollar machine stops creating money instantly and the global economy seizes.

because the money is just suddenly gone.

It literally doesn't exist.

Before Lehman collapsed, there was still trust in the system that kept the Eurodollar flowing.

There was still a widespread belief that the authorities would step in and backstop whoever needed saving.

Too big to fail.

We've heard that before.

That belief was the last thread of confidence holding the system together and keeping it functioning.

When Lehman filed for bankruptcy, it became clear that not everyone was going to be saved, and every bank suddenly looked at every other bank and saw a potential Lehman, hence the near-fatal cardiac arrest.

Now, with that understanding, let's take a fresh look at this gold collapse, because the stability of the euro-dollar market flow is way too reminiscent of 2008.

The war in Iran merely created a spike in dollar demand.

That's all.

If the Eurodollar market wasn't already drenched in paranoia, it should have been a relatively easy problem to solve.

So the question you should be asking is how is the private credit market causing that strain?

Private credit markets have been showing signs of stress since late 2024.

The warning signals first started coming from the repo markets.

A repo, which is short for repurchase agreement,

is essentially a very short-term loan between banks where one bank sells an asset like a treasury bond to another bank overnight with an agreement to buy it back the next morning at a slightly higher price.

That tiny price difference is the interest.