The dollar as we know it about to be burned away.
Trump has given a particularly salient warning without being the least bit astute. He said that we are heading into another Depression. But only if we elect Democrats to change the power center of congress.
It is an easy prediction in that, yes, we are likely heading into another Depression. We’re already on the path. One thing, however, is, at least, shrewd about Trump’s prediction: Recognizing that a depression is already right around the corner, why not prepare to capitalize on the Democratic Party’s big election victory, if it happens as projected, by setting the stage now for claiming the Depression that looks likely to begin next year due to the Big Bond Bust is the Democrat’s fault.
There will be new Democrats to blame, so that will help take the pressure off Biden.
I just wrote in my latest Deeper Dive all about the major three-storm system that is already forming all around the country (and the globe for that matter). One reason I predict these things and keep pointing that out is so the perps cannot blame someone else by saying “No one could’ve seen that coming.” Yes, you can:
The three-storm systems are the massive sovereign debts in many nations that dominate bond markets, the already crashing stock market, which is kept aloft only by seven AI/Tech stocks, and the housing market that will have to crash as interest rates keep rising.
The energy that is heating up the three systems right now is coming from the Trump Tariffs and the Trump-Iran War, both of which are driving up inflation all over the world. That inflation is forcing bond rates way up, which is taking the temperature of interest rates up to the flash point.
Here are the president’s words:
If the Democrats get in, we will end up in a financial depression. We will go into a depression the likes of which we’ve never seen before. It’ll be 1929 — that’s my opinion.
Indeed we will because we are already past the point of no return. There is nothing the Dem’s can do that will get us out of this doom loop I’ve been writing about because, even if they win, Trump still has more than two months with Republicans left in office in which to escalate his war and maybe even start other wars before the Dems can stop him.
The storm is already forming. The lightning is already flashing. The thunder, already cracking. The full winds have not yet hit, nor the heavy rains. The inflation from severely damaged oil infrastructure throughout the Middle East will be arriving onshore for months to come, even if the war stops today. Already, today’s news includes a report of multiple Saudi airports being attacked by the Houthis and the ability of their little drones to easily dodge US interceptor missiles and then head right back on target. At the same time, the story tells Saudi retaliation against a refinery in Yemen. The damage continues to mount. The flames continue to rise as the smoke of war darkens the Eastern skies.
Economist Peter Schiff agrees with Trump, but says, as do I and as does our featured article today, that it will happen either way:
“Trump predicts a 1929-style depression if the Democrats win the midterms. If he’s right, it’s only because a depression is coming regardless of the [election] outcome. Even if it’s not a depression, Trump’s forecast enables him to blame Congress for every problem that follows the election….”
Either Trump knows he is going to get destroyed in the midterms and he is getting ahead of this now so as to say, ‘I told you so.’ Or he will remain in power and it will happen under him. Either way, it’s coming: it’s the great taking.
I agree with the author of the quoted article, Jacob Thompson, that we never really recovered from the Great Recession of 2008. This is something I have said since 2009 when I began pointing out in newspaper articles that everything we were doing was pushing the debt up into a bigger mountain further and further down the road, papering over the problems with more and more bonds that would one day come home to roost. We now see them coming home to roost as bond interest on those national debts around the world, and especially the US, ascend rapidly out of control. All the Fed can do is pretend to keep up with interest hikes far smaller than the hikes already being administered by bond vigilantes.
The Great Digital Monetary Reset
In another article back in January, Thompson pointed out something I’ve been saying for, at least, a year, myself: Trump is readying his own digital currency to benefit off the crash of the US financial system. The only thing big enough to create such a crash is the Big Bond Bust, itself, which will blow up the Treasury market and force either much higher inflation or a massive default.
I have been saying since the last part of Trump’s first term that Trump has been engineering the breakdown of the dollar with his tariff wars; but he more than doubled down on that now with his war in Iran, which is wiping out oil production all over the Middle East. I’ve laid out the rational for both those claims many times, so I won’t go into it again right now. Suffice it to say, we SEE it happening.
It became more obvious when he developed his own cryptocurrency, started pushing for the use of cryptos within the US Treasury, struck down all talk of a Fed CBDC, and positioned his own crypto to integrate with the US SWIFT monetary system and now as he pushes the development of SI (let’s more accurately call it “Satanic Intelligence”) at warp speed because SI is necessary to run the monetary system Trump envisions. He even now calls all of those who stand against his reckless, full-ahead pursuit of “SI” without legal guardrails “ENEMIES” of the state!
He always says those kinds of things in advance in order to set the stage for using them later. Like when he predicts corrupt elections just in case he loses, WHICH NEVER COME AGAIN UP WHEN HE WINS! (And never get proven in any court or fixed after he wins and has the power to actually do something about it.) He’s preparing the ground in order to use that argument if it becomes clear he was the biggest loser because there is nothing Trump hates more than losers.
The Great Currency Reset: How Trump And The Federal Reserve Are Working To Crash The Dollar As A Pretext For Full Tokenization
“Put simply: they’ll move the debt into the crypto cloud, devalue it — and start from scratch. That’s the reality for those who are so enthusiastic about crypto,” said an adviser to Putin.
As I’ve pointed out multiple times, Trump, in his own writings has said that bankruptcy is just another form of finance. He has deployed it a number of times to wipe out his own debts. He’ll do the same with the nation and position crypto to be the savior, favoring, of course, his own crypto.
I used the following cover from The Economist back in the last millennium a couple of times several years back to talk about what was coming in digital currency as a replacement for the current monetary system. In 2021, The Economist updated their cover to say the time has arrived:
The Economist: The time span between the two covers is exactly 33 years, 3 months, 3 weeks, and 3 days.
Thanks to the turn by Trump, we’ve roared right past the Fed’s planned CBDC to plans for something crypto-based and AI-based, but beware: Putin’s advisor claims they also plan to pile the US debt into crypto and flush it. He may know something, and it certainly fits Trump’s financial M.O. Not all cryptos are created equal, and I have no idea yet, what crypto they plan to use for the great flush.
However, here is a hint that Thompson provides:
In 2019, written in advance of the Jackson Hole, Wyoming, Symposium, BlackRock published a document titled “Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination.” The document openly called for countries to explicitly inflate their currencies in a bid to transfer economies into CBDCs and stablecoin assets. The authors wrote:
“Unprecedented policies will be needed to respond to the next economic downturn. Monetary policy is almost exhausted as global interest rates plunge towards zero or below. Fiscal policy on its own will struggle to provide major stimulus in a timely fashion given high debt levels and the typical lags with implementation.”
Well, they were somewhat wrong about that. We have moved far past zero-interest-rate policy (ZIRP) to astronomically soaring interest rate non-policy when the bond market took over the reins. However, I am sure Larry Fink, head of Blackrock, who is closer to the Fed than Kevin Warsh and more deeply involved in US finance than anyone, as well as head of the WEF, is still telling nations to inflate their currency out of existence and flush it.
Well, they weren’t entirely wrong because they certainly carried out the following part of that report after it was written in 2019:
“An extreme form of “going direct” would be an explicit and permanent monetary financing of a fiscal expansion, or so-called helicopter money. Explicit monetary financing in sufficient size will push up inflation. Without explicit boundaries, however, it would undermine institutional credibility and could lead to uncontrolled fiscal spending.
The Fed and feds did achieve huge inflation in prices with helicopter money (money doled out directly to citizens) to diminish the value of the currency at a level they were never able to stop the price inflation. It did undermine Fed credibility for awhile because the Fed maintained its slack policy by claiming the inflation was transitory until it had to admit it was not transitory and “that wasn’t a helpful term.” But they survived, though no longer fully in the driver’s seat.
In July, when Americans were distracted by the Jeffrey Epstein debacle, President Trump signed the Genius Act, which provides federal regulations for stablecoins. The bill allows corporations to become “banks” and issue their own tokenized money assets backed 1:1 by the dollar and U.S. treasuries. Per the White House fact sheet: “The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.”
It’s probably more likely to detonate the dollar than stabilize it, but they don’t actually care. That’s just the veneer; they have replacements in mind.
Trump’s AI and Crypto Czar David Sacks, a member of the PayPal Mafia, confirmed during the signing event that the bill creates a digital dollar….
“This genius act will unlock American dominance in the crypto industry by creating clear rules of the road. It will update arcade [sic.] payment rails with a revolutionary new payment system, and it will extend US dollar anonymous [sic.], like you said, globally by creating a digital dollar that people all over the world can use.”
Except that it won’t be a digital dollar, other than in name, because The Fed does not regulate crypto currencies, and Trump hates the Fed.
I’ll let Thompson explain more of the scheme in his article, linked to above. Along the way, he raises many potent questions about Trump’s US-government financial track record:
Then again, this is Trump we’re talking about. Whatever happened to publicly auditing Fort Knox to see if all the gold is there? Why hasn’t Trump reestablished gold and precious metals as sound money, to back the dollar with gold? What happened to the so-called “External Revenue Service” in place of the IRS? What happened to the Strategic Bitcoin Reserve? What happened to Musk and DOGE paying down part of the national debt from all the wasteful cuts, and the supposed rebate checks that would come from that as well? What happened to tariffs reshoring jobs and nations trembling at Trump’s feet to do business? What happened to tariffs paying down the national debt, while the President claims the country brought in $18 trillion in tariff revenue (impossible), and a so-called “dividend check” to boot?
With that track record for all of his past financial promises, you can expect an enormous mess coupled with massive government control but one designed to inure benefits to Trump’s portfolio.
What I am saying is not hyperbole; in its end-year forecast for 2026, The Economist speculates that a bond market implosion could very well be possible; and if they are saying it publicly, then we know it’s a real threat – a threat that would utterly collapse the country and usher in an insane amount of inflation.
Get ready. The tinder has been laid, the match has been struck, the accelerant is at hand.
Burn, Baby – BURN!
Written by David Haggith for The Daily Doom ~ October 13, 2026
