The mainstream consensus remains fixated on the “soft landing” narrative—a fantasy where inflation fades and growth persists without consequence. However, this optimism ignores the fundamental mechanics of the credit cycle. We are not merely witnessing a temporary economic slowdown; we are approaching the systemic end of the post-1971 fiat currency experiment.
1. The Debt Trap and Interest Compounding
When a sovereign nation’s interest payments exceed its productive capacity, it enters a terminal debt trap. Today, the United States is spending more on interest than on its national defense. This is the “Point of No Return.” To service this interest, the Treasury must issue more debt, which the central bank must eventually monetize. This is the definition of a hyperinflationary feedback loop......
