This is how I see things going. Hodl on to your nuts.
GN💜
Discussion
Good morning 💜
Enjoy the ride, it’ll all be okay.
(Watch til the end 😘)
The U.S. Monetary Fiat Swirl (1913–2025)
Theme: Each crisis tightens the swirl. Liquidity becomes the solution. But each solution fuels the next problem.
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1913: The Calm Before the Swirl
• Money = Gold. The U.S. dollar is backed by gold; banks can’t print more than they have.
• Federal Reserve is created to act as a lender of last resort.
• Goal: prevent bank panics, not manipulate markets.
System is stable. No swirl yet. Currency is anchored.
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1929: The Great Depression (Swirl Begins)
• Stock market crashes.
• Banks fail en masse. Credit evaporates.
• Fed fails to provide enough liquidity.
• Result: deflation, mass unemployment.
First lesson: lack of liquidity = disaster.
Response:
• 1933: Gold confiscated. Dollar devalued.
• 1934: Gold Reserve Act: gives Fed more power to control money supply.
The swirl begins: the state, not gold, becomes the center of monetary control.
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1944–1971: Bretton Woods + Dollar Hegemony
• Post-WWII: The dollar is still tied to gold, but only foreign nations can redeem.
• U.S. prints more than it can cover in gold (to fund wars + programs).
• 1971: Nixon closes the gold window. No more gold redemption.
The last anchor breaks. Fiat currency is now completely untethered. The swirl deepens.
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1980s–1990s: Easy Credit Era
• Fed under Volcker raises rates to stop 1970s inflation.
• Then comes Greenspan: low rates, market support.
• Savings & Loan crisis, stock market crash (1987) → Fed cuts rates.
• Easy credit fuels dot-com boom.
Swirl gets faster: every downturn → more liquidity. Markets now depend on Fed easing.
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2000–2001: Dot-Com Bubble
• Tech stocks collapse.
• Fed slashes rates aggressively.
• Result: money flows into housing and speculation instead of innovation.
The swirl pulls new sectors in: housing, mortgages, derivatives.
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2008: Global Financial Crisis (Mortgage Collapse)
• Subprime mortgage market collapses.
• Lehman Brothers fails. Global contagion.
• Fed launches QE (Quantitative Easing): prints trillions to save banks.
• Congress passes TARP: billions in bailouts.
Massive liquidity injection. Trust shifts to Fed policy, not bank solvency or fiscal discipline. The swirl is institutionalized.
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2020: COVID-19 Pandemic
• Entire economy shuts down.
• Fed slashes rates to zero.
• Unlimited QE: buys corporate bonds, even junk-rated ones.
• Congress passes multi-trillion dollar stimulus.
• PPP, stimulus checks, unemployment top-ups.
Liquidity becomes a drug. Velocity falls, but the monetary base explodes. The swirl now pulls in the whole government and population.
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2022–2023: Inflation Returns
• After years of QE, supply shocks reveal the hidden inflation.
• Prices rise fast. Fed raises rates aggressively.
• Treasury debt becomes expensive to service.
• Banks start failing again (Silicon Valley Bank, 2023).
The swirl turns inward: debt now threatens the system itself. Fed must choose: save dollar or save banks?
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2024–2025: Tariffs, Debt Ceiling, and Fiscal Gridlock
• President Trump returns. New tariffs on China, Mexico, Europe.
• Global supply chains strain. Inflation pressure returns.
• Congress gridlocked: fights over spending, but keeps raising the debt ceiling.
• Federal Reserve trapped: Can’t cut rates without fueling inflation. Can’t raise rates without crashing the system.
The center of the swirl now holds: banks, Fed, Congress, Treasury — all locked in a vortex. The cost of servicing debt grows faster than GDP.
This is going to be epic!!!
Grab your pop corn! Stay safe!!!
USD stablecoins are the funnel through which Western economies will pour liquidity into
Bitcoin