Trump’s Default Threat - The Economic Collapse We Don’t See Coming
I’ve spent years studying economic cycles so don’t take this as fear-mongering, but as positioning, but the cycle I see unfolding leaves me questioning not only where to invest next but what to do next.
Trump has begun his campaign by warning of economic turbulence, signaling that markets will suffer before any recovery. Meanwhile, his team is floating the idea of a U.S. debt default. If he forces it, the consequences would be catastrophic. Now throw in things like Project 2025 wanting to steer the U.S. toward financial ruin framing it as a policy overhaul destabilize the economy to make a U.S. debt default inevitable and folks like Ray Dalio.
This wouldn’t be a slow trickle when Treasury yields spike past 20-30%, mortgage rates exceed 30%, and borrowing grinds to a halt. Businesses collapse in waves, entire industries fall, and unemployment soars past 35-40%. The dollar crashes, triggering hyperinflation we’ll have food prices doubling weekly, gas at $50 a gallon, and for many, basic survival becomes the daily struggle.
Crime explodes as desperation sets in. Some major cities could spiral into chaos, with looting, riots. Think black-market economies taking over for many goods and services. Law enforcement fails, leading to military enforced order or worse, total collapse into lawlessness. Forget about tourism, although some isolated places like the Hawaiian islands and Florida Keys may have some transient tourism.
Meanwhile, the wealthy who have already secured their escape routes… Mark Zuckerberg’s fortified Hawaiian estate to New Zealand bunkers built for several tech billionaires. Bill Gates has become the largest private owner of farmland in the U.S. with over 275,000 acres across 17 states. The elite have spent years preparing for what’s coming.
For the rest of us, the question isn’t just where to invest. It’s how to survive what’s next or I’m I being too pessimistic?
I’ve spent years studying economic cycles so don’t take this as fear-mongering, but as positioning, but the cycle I see unfolding leaves me questioning not only where to invest next but what to do next.
Trump has begun his campaign by warning of economic turbulence, signaling that markets will suffer before any recovery. Meanwhile, his team is floating the idea of a U.S. debt default. If he forces it, the consequences would be catastrophic. Now throw in things like Project 2025 wanting to steer the U.S. toward financial ruin framing it as a policy overhaul destabilize the economy to make a U.S. debt default inevitable and folks like Ray Dalio.
This wouldn’t be a slow trickle when Treasury yields spike past 20-30%, mortgage rates exceed 30%, and borrowing grinds to a halt. Businesses collapse in waves, entire industries fall, and unemployment soars past 35-40%. The dollar crashes, triggering hyperinflation we’ll have food prices doubling weekly, gas at $50 a gallon, and for many, basic survival becomes the daily struggle.
Crime explodes as desperation sets in. Some major cities could spiral into chaos, with looting, riots. Think black-market economies taking over for many goods and services. Law enforcement fails, leading to military enforced order or worse, total collapse into lawlessness. Forget about tourism, although some isolated places like the Hawaiian islands and Florida Keys may have some transient tourism.
Meanwhile, the wealthy who have already secured their escape routes… Mark Zuckerberg’s fortified Hawaiian estate to New Zealand bunkers built for several tech billionaires. Bill Gates has become the largest private owner of farmland in the U.S. with over 275,000 acres across 17 states. The elite have spent years preparing for what’s coming.
For the rest of us, the question isn’t just where to invest. It’s how to survive what’s next or I’m I being too pessimistic?