Massive defaults beginning in March. Worldwide central banks will discover that they have vaults full of useless assets: gold bars and T-Bills, supposedly constituting their foreign currency reserves for facilitating trade. The US$ was the intermediary in every forex swap, noting can replace that. Most countries need energy imports and will suffer greatly when trade collapses.
That's when over US3T in U.S. is due for refinancing, leftover from pandemic money-printing. Likely other countries facing the same problem at about the same time. As well, likely when BRICS "Unit" system activates. https://kathleenmccroskey.substack.com/p/the-future-starts-in-march
But as previously noted, China might bail them out, to avoid the otherwise necessary cleanup job. Or perhaps not, let them rot in the mess they created.
"The Dollar Vacuum" is a great article, thank you. If the BRICS+ et al., can adequately separate from the dollar-based system, they might somehow survive, but it will be difficult. We are, however, looking at a world controlled by the two remaining "great powers", Russia and China, who have managed their affairs without resorting to massive financialization of everything. The "West" goes into the black hole that it created by valuing leverage over production.
The U.S. dollar is heading toward a crisis because it's no longer anchored to real savings, production, or market discipline. Decades of central-bank money creation, deficit spending, and credit expansion have diluted the dollar’s purchasing power, masking real economic weakness behind rising asset prices and debt. This artificial boom can't last. As more dollars are created to paper over past failures, confidence in the currency will erode, prices will rise, and people will begin to flee the dollar for real goods and harder monies like gold and silver. The result isn't just inflation, but the destruction of the dollar’s value itself.
Massive defaults beginning in March. Worldwide central banks will discover that they have vaults full of useless assets: gold bars and T-Bills, supposedly constituting their foreign currency reserves for facilitating trade. The US$ was the intermediary in every forex swap, noting can replace that. Most countries need energy imports and will suffer greatly when trade collapses.
I thought you might like this one. Yes, I suspect that's a good call. Do you have a specific reason for the timeline? End of financial year?
That's when over US3T in U.S. is due for refinancing, leftover from pandemic money-printing. Likely other countries facing the same problem at about the same time. As well, likely when BRICS "Unit" system activates. https://kathleenmccroskey.substack.com/p/the-future-starts-in-march
But as previously noted, China might bail them out, to avoid the otherwise necessary cleanup job. Or perhaps not, let them rot in the mess they created.
"The Dollar Vacuum" is a great article, thank you. If the BRICS+ et al., can adequately separate from the dollar-based system, they might somehow survive, but it will be difficult. We are, however, looking at a world controlled by the two remaining "great powers", Russia and China, who have managed their affairs without resorting to massive financialization of everything. The "West" goes into the black hole that it created by valuing leverage over production.
On move of Sovereign Wealth into US$ - https://globalswf.com/news/the-global-swf-year-in-review-2025-the-ideas-power-shifts-and-structures-that-defined-sovereign-capital
Steven Newbury, what do you think the end result of this Singularity will be? What does the implosion of this system look like?
The U.S. dollar is heading toward a crisis because it's no longer anchored to real savings, production, or market discipline. Decades of central-bank money creation, deficit spending, and credit expansion have diluted the dollar’s purchasing power, masking real economic weakness behind rising asset prices and debt. This artificial boom can't last. As more dollars are created to paper over past failures, confidence in the currency will erode, prices will rise, and people will begin to flee the dollar for real goods and harder monies like gold and silver. The result isn't just inflation, but the destruction of the dollar’s value itself.