CryptoBull🥇

🇺🇸 America may have just entered the most dangerous phase of its debt crisis. Peter Schiff thinks the surge in Treasury yields is telling us something much bigger than inflation. For decades, America could keep piling on debt because borrowing costs kept falling. That bargain is disappearing. “We’re entering phase four, which is high debt and high interest rates.” The 10-year Treasury has climbed above 5.3%, its highest yield since 2002. Schiff argues creditors are finally questioning whether lending enormous sums to Washington still makes sense when federal debt is approaching $40 trillion and deficits continue to grow. And this is where the problem starts feeding itself. Higher Treasury yields mean higher government interest costs. They also mean more expensive mortgages, corporate borrowing and AI investment. Schiff thinks housing is especially vulnerable because the entire market was built around cheap financing. “What made expensive homes affordable was the cheap mortgages.” If mortgage rates keep climbing, he argues home prices eventually have to fall simply because buyers cannot finance today’s valuations. Meanwhile, Washington is effectively betting that AI produces enough economic growth to outrun the debt. “You’re betting the house, right? We’re putting it all on AI, and AI or bust.” That may work. But Schiff’s point is that America now needs it to work while simultaneously financing historic government debt, an enormous AI buildout and an economy accustomed to cheap money. For 40 years, falling rates made rising debt easier to carry. Now both are rising together. @peterschiff

🇺🇸 The U.S. economy is 10 million jobs short of where it should be + the top 1% controls a record 32.5% of ALL household wealth... The system is approaching a powder keg moment. Jeffrey Snider joins the show for his weekly macro breakdown: 2 years of near-zero job growth, 3 million people falling further behind the trend, and a jobs report last month that was a statistical anomaly masking the real picture. Jamie Dimon's "cockroaches" warning on private credit has proven prescient... the fraudulent loans were a symptom of an entire credit cycle building bad behavior since 2008, and it is now starting to crack. The wealth divide is at its worst since the GILDED AGE, with young people unable to afford cars until their 30s or houses until their 40s, increasingly turning to radical politics because nothing else is being offered. "People who are disaffected, pissed off and see no future, vote for radical change. It's at least understandable." The stock market is betting entirely on AI while getting increasingly defensive on everything else, and the question nobody is asking is what happens when that bet does not pay off. This economy is FRAGILE, and the surface level numbers are hiding it... @JeffSnider_EDU

🇷🇴 Romania looked at Power Slap and said hold my beer. Writer: Val