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China Repeats Our Warnings About Treasuries
Inside today’s Daily Journal…
Essay: China Repeats Our Warnings About Treasuries
The first ones now will soon be last
A mixed jobs report
Google and Texas Pacific Land hook up
Chart Of The Day… Caterpillar
Reader Poll… Jobs Or No Jobs
Today’s Mailbag
Something is about to break.
And even if you think you’re ready for it, you’re not. Before the end of this decade, the U.S. federal government and the entire banking system will face its biggest crisis since 1933.
The size and scope of Americans’ dependency on the government – which has grown consistently, year after year, since President Lyndon Johnson’s “Great Society” programs – has overwhelmed the government’s ability to fund these programs with taxes.
Again and again over the last 15 years, the government has funded itself, in ever growing amounts, by printing money to buy its own bonds.
This ongoing, insidious inflation has destroyed the middle class and left most Americans trapped in an economy where prices continue to rise much faster than wages. As a result, most people under 40 no longer believe in the American dream and see collectivism and socialism as the only viable path forward. That’s the thing about corrupting the money. It doesn’t only harm the economy. It corrupts the entire society.
The Weimar hyperinflation of 1923 wasn’t just an economic crisis – it was the systematic destruction of Germany’s middle class and the social order that held society together.
When the government chose to finance its deficits by printing money rather than raising taxes or cutting spending, it unleashed a monetary catastrophe that would reshape German society forever. By November 1923, it took 4.2 trillion marks to buy a single U.S. dollar.
Teachers, engineers, and civil servants who had saved their entire lives watched their nest eggs become worthless overnight. A lifetime of prudent saving couldn’t buy a loaf of bread, while speculators and debtors who had borrowed heavily found their debts evaporated by inflation.
The psychological trauma went far deeper than the economic devastation. The German middle class had built their identity around thrift, hard work, and delayed gratification – values that hyperinflation made not just useless but actively harmful. Those who had played by the rules were punished, while those who abandoned fiscal responsibility were rewarded.
This wasn’t just monetary policy gone wrong – it was the foundation for political extremism that would follow. When money loses meaning, society loses its anchor, and people become desperate enough to embrace radical solutions. The lesson remains: sound money isn’t just about economics, it’s about preserving the social fabric itself.
– Handre van Heerden
America’s social fabric isn’t going to be destroyed. It already has been destroyed.
OnlyFans, a social media platform that facilitates prostitution, has exploded from a start-up in 2016 to a $7.2 billion revenue behemoth. And, since COVID, revenue is up 2,570% with 1-in-10 women under age 30 having active accounts. Americans spend more on OnlyFans than they do on the #1 selling newspaper and #1 AI platform… combined.
Gambling? Sports betting – once a fringe, illicit activity in most communities – has ballooned to $200 billion in annual wagers, generating $17.6 billion in bookmaker wins and $3 billion in taxes.
But what happens to young men when both porn and gambling are available, privately, on their cell phones?