3 Minutes Ago: Alasdair Macleod Shared a Horrible News

Added: 2026-05-29

[00:00:00]The dollar is toast. This is very bad news. It really is. And the consequences are that we've got a a declining economy which I think will go into a real slump, major slump with interest rates rising at the same time, inflation, you know, which is the misnomer actually really what it is. It's collapse in the purchasing power of the dollar. Um soaring um you know, this is I mean it's not just a question of stagflation. I mean, this is the nastiest um combination really of an economic and fiat currency collapse. It's the end of the fiat currency era. That's really what we're staring at. And if you look at the US, I mean, the the expansion of credits has been very much into puffing up financial assets. You know, this is a bubble. Bubbles inevitably burst and the fallout from that. this time instead of having a currency actually tied to gold on a gold standard this time it'll take the currency down with it cuz what is currency currency is credit I mean you can see the mechanics of it bond yields will rise call it a buyer strike that's what we called it in the 70s when we had these conditions you get rising bond yields that drives down all financial assets you get a real crisis developing uh the Fed is now in a position where it's effectively set itself up not just to be the lend ender of the last resort but the rescuer of the whole shooting match. So you can see that contraction in the value if you like of credit in the private sector is going to be more than made up by the dilution of the dollar you know by government authorities including the Fed. So this is you know it look the end of the fiat currency era that's actually what we're approaching and um I don't say that lightly and it shouldn't be taken lightly either. One of the things that's really going to kill the dollar I think in 2026 is um you know the developments we've seen recently with bricks I mean it's fascinating apparently um Modi in India turned down I mean he refused to answer the telephone four times to President Trump when President Trump realized that he'd made a huge great mistake trying to sanction India for um uh taking in and processing Russian oil.

[00:02:19]Uh, you know, I mean, this is the art of the deal, but I mean, the art of the deal really depends on your interlocutor actually talking to you. And Modi said, "No, forget it." And next week, he was in Beijing or not, but Tanjing or whatever it was, um, you know, at the SEO conference, you know, hugging and kissing with Putin and she, you know, that said it all. I mean these are the two most populous nations, India and China. 2.8 billion people out of a total population of the on the planet of about 7 and a half billion. I mean what we're looking at I mean you you know you were saying that um you know sort of bricks and SEO we're looking at something like 40%. If you look at um if you look at GDP in in purchasing power parity terms China is already a good 30% larger than the United States.

[00:03:12]taking the whole thing. I mean, what we're seeing is China is tying up the majority of the world economy as its own market.

[00:03:24]It no longer cares about America. It no longer cares about Europe. I mean, we can, you know, we can ban them from here to Helen Gone. It's not going to change anything. And the one piece in the jigsaw which is yet to really be put in place is the one which we can now see developing and that is a yuan which doesn't share the fate of the dollar the euro sterling and the yen.

[00:03:53]the yuan will go on a back I I mean the way it's going you can see quite clearly that they're modeling a new gold back uh currency based on uh the way in which Bretton Woods worked in other words it won't be um for individuals if you like to exchange yuan for gold it'll be at the government level and it'll be international trade related exactly what we had under the the Bretonwood system this is Bretonwoods Mark too. You can see it. It's there. And what does that do to the dollar? It kills it because you've got the majority of the world both in terms of population and GDP. No, no longer needing the dollar. And so, you know, you've got $40 trillion of financial assets. You have got according to the Bank of International Settlements a further 80 trillion tied up if you like as part of the foreign exchange markets. On top of that, you got the Euro dollar market. In other words, offshore dollars which are a further 10 trillion. So you got what about $130 trillion seeking a home. Where's it go? Goes back to America. It, you know, it gets sold.

[00:05:06]It's redundant. That's going to collapse the dollar. You collapse the dollar.

[00:05:10]What do you do to us? You collapse us as well. And the Euro zone, God bless them.

[00:05:17]And also the the the yen. I mean this is this is the challenge. Dealing with this is the challenge in 2026 and markets are blissfully unaware of it. I mean we're still you know momentum chasing Nvidia and Bitcoin and all the rest of it. I mean you know this crazy people are asleep. Wake up. Well I mean I think things happen in phases. I mean the first thing we're seeing is a decline of the dollar. Um and uh that will have the knock-on effect on all the fiat currencies because it we're really what we're looking at is the end of the fiat currency system. Um I think sorry, excuse me. I think that um Europe is in great risk of um falling apart. Um the Brussels administration is is a joke. Um and it hasn't really got control over every anything. I mean uh you know not democratic control. So long as Brussels exists, it is divisive, I think, between nations rather than cohesive, which it's meant to be. You can already see that um there are some factions which um look more likely to survive than others. And I would say that Italy um under Maloney's really I mean that is a recovering well and she she's also got the common sense to realize that you've got to have you know you got to have people with wealth around you rather than um chasing him away. I mean you know you get the head of Goldman Sachs Europe moving to Milan for goodness sake. I mean, you know, that was a huge signal I I think and um also Hungary um and some of the Balkans, etc. Uh so I think there's you know the there is a sort of if you like a left right you know sort of welfare state uh is is is history uh part and welfare state we're going to continue on down that road because we're communists after all you know like France Spain now Germany is difficult Germany is a mess a huge mess um you've got the politics of you know anti-Russian politics and all the rest of it and I think that's probably going to go to an extent, but um it's so I think I think it's I think Europe's sort of dividing into those sort of two camps and I think it'll just break apart the whole thing. The euro itself is it's like a camel, you know, put together by a committee. It won't survive that I'm absolutely sure. Well, yeah, but I mean on its own what would happen is that they would restructure it um if you like to try and keep the thing going together. But I think the thing that will kill it is currency. The currency is a I mean it's a fiat currency. Okay, we know that the central banks I mean the Fran, France, Germany, Italy are three of the biggest holders of gold um in you know central banks. Uh but they haven't got they haven't got the situation where they could go back onto a gold standard um because uh you know the their um deficits their budget deficits are absolutely enormous.

[00:08:30]They're out of control and there is no political will to control them.