Tom Bilyeu
๐ค SpeakerAppearances Over Time
Podcast Appearances
They will then sell their holdings, which forces interest rates to go higher to attract new buyers.
And those higher rates then make the interest payments on the already staggering national debt even more impossible to pay.
This forces the government then to, you guessed it, print even more money just to keep the lights on, fueling a cycle where more and more dollars are chasing the same amount of goods.
And that drives prices up and is exactly how you move from transitory inflation to the kind of runaway double-digit hyperinflation that all throughout history has collapsed empire after empire.
Just like with silver, you cannot solve a physical supply problem with a paper solution.
Eventually, the math catches up and it happens with a level of violence that always catches the paper traders completely off guard.
Now, if you're tempted to think I'm overstating the problem, consider this.
China is already aggressively building alternatives to the U.S.
monetary system for this reason.
and others.
The ECNY, or the Digital Yuan, is the world's first fully operational central bank digital currency, and the SIPs payment system that it uses is set to work around the US financial system entirely.
They have already processed over 700
trillion CNY in transactions, creating a lane for global trade that doesn't require a single greenback.
If the world starts to believe that US paper claims, whether they are silver contracts or dollars, cannot be converted into real value under stress, the confidence game ends.
As Ray Dalio has warned, when debt becomes unsustainable and rivals offer an alternative, they move away from it quietly.
but systematically and forever.
And it's already happening in the US and is likely to accelerate.
So how do you navigate a world where the paper abstractions are melting and physical reality is taking back control of the wheel?
You have to develop an anti-fragile strategy that does not have a single point of failure.
Most people are currently very fragile because their entire net worth is tied to the continued stability of the US dollar and the paper markets.