Beware Falling Castles and Fake Economies

“Castles in the Sky”

We say this when we’re building something atop nothing.

Our global markets hit a rough patch in 2008 and we papered over it with printed capital and debt, the two inextricably linked.

This was made possible by the actions taken in 1971.

The 1971 decoupling of the US dollar from gold, combined with subsequent policies of excessive credit creation, created a mirage.

This unconstrained capital creation fostered an illusion of prosperity built on fictitious wealth. This unsustainable economic model, characterized by inflated asset values and crippling debt, is now reaching its breaking point, with the commercial real estate sector poised to trigger a cascade of financial crises that could shatter the dollar's dominance.

The Imaginary Wealth Engine

Since the 1971 decoupling of the US dollar from the gold standard, our financial system has undergone a profound transformation, morphing into a complex machine fueled by limitless credit. This paradigm shift, while initially spurr…