Fed’s $2T Bailout is Prepped - Banks Will Echo WW2 Era
Fed’s $2T Bailout is Prepped - Banks Will Echo WW2 Era
Daniela Cambone: 4-21-2025
“It ends with the banks looking like they did at the end of World War II... half of their book was government bonds,” says R. Christopher Whalen, investment banker and author.
In a conversation with Daniela Cambone, he breaks down the systemic risks emerging in the treasury market. “Today the treasury market is basically a carry trade with a lot of hedge funds using 100 to 1 leverage.
That’s the market for treasury debt,” he explains, pointing to the fragility of the current system.
Whalen also argues that the Bretton Woods framework has eroded and that the dollar’s dominance is waning.
“This dollar Imperium has run its course.” He believes central banks — including the U.S. Federal Reserve — should diversify their reserves to include gold alongside major currencies like the dollar, euro, and yen.
He views gold as a strategic reserve asset with untapped financial utility. “I hope... the BIS is going to recognize gold as a high-quality liquid asset... it would become eligible to be collateral in swaps,” he says.
Key Topics:
President Trump and Powell were going to cross swords.
The Fed struggles to manage the economy and rates.
Multifamily real estate is the subprime today.
The Fed should be holding gold.
The dollar is attractive because of our marketplace.
National debt has tripled in 15 years.
Chapters:
00:00 Trump and Powell
4:26 US dollar
5:31 Andrew Jackson
7:43 Weaker dollar
8:59 High inflation
9:38 Treasury market
11:44 Banking system
12:27 Financial system reset
14:56 Gold
19:46 Housing market
21:21 National debt
25:58 BRICS
26:58 Concluding words
