The End of Fiat, Stablecoins, and the Gold Reckoning: Lynette Zang
The End of Fiat, Stablecoins, and the Gold Reckoning: Lynette Zang
Kitco News: 10-9-2025
In a powerful, cut-down version of the interview, Zang dismantles the official economic narrative, arguing that central banks are rapidly losing control of the very data they rely upon.
The discussion reveals a profound credibility gap that, according to Zang, signals the inevitable end of the current monetary system and the beginning of a radically different financial era.
If you are basing your financial security on official GDP reports and manipulated CPI numbers, consider this your urgent wake-up call.
The most immediate danger identified in the conversation is the alarming gap between the official economic narrative and the reality experienced by the average consumer.
We are continually bombarded with positive headlines—a “dovish” Federal Reserve, stable housing price narratives, and low unemployment figures. Yet, the underlying truth is that consumers are deeply stressed, and the U.S. Treasury market remains acutely fragile.
Zang points to a troubling trend: Economic data is becoming systematically unreliable. Data revisions are increasingly necessary, transparency is declining, and the political manipulation of statistics is evident.
When central banks cannot trust their own metrics, and the public is left bearing the risks of an artificially propped market, trust collapses.
This credibility gap is not just an inconvenience; it’s a death signal for the existing system.
The core thesis is simple: You cannot navigate an unstable economy with dysfunctional, politically motivated data. We are truly “flying blind.”
While much of the market focuses on traditional inflation drivers, Zang highlights a surprising new catalyst for monetary collapse: Stablecoins.
Stablecoins, digital assets pegged to fiat currencies like the U.S. dollar, are often viewed benignly. However, Zang argues that their proliferation could dramatically accelerate a wave of hyperinflation and act as the transitional mechanism during the shift to a new global system.
This threat arises from the systemic fragility of the underlying assets—often U.S. Treasuries—that back these tokens. As systemic risk in the traditional banking sector and Treasury market increases, a run on stablecoins could quickly transmit and amplify volatility throughout the entire monetary structure, potentially leading to rapid creation and devaluation of digital money during a crisis point.
The shift toward central bank digital currencies (CBDCs) and digital assets represents a profound monetary transition. Zang warns that those holding traditional fiat assets could face devastating losses as this transition accelerates, pushed forward by digital catalysts like stablecoins.
In an environment of extreme systemic fragility, attention inevitably turns to safe-haven assets. Zang’s analysis dedicates significant focus to the discrepancy between the official gold market and physical reality.
The official spot price of gold is believed to be heavily distorted by the dominance of paper trading (futures and derivatives) over genuine physical holdings. This artificial suppression keeps prices lower than what the real-world demand for physical metal would dictate.
The movement toward physical gold and silver is the market’s definitive statement about the future of the global monetary system. When demand shifts from easily manipulated paper claims to tangible metal, the exposure of gold’s real, undervalued price becomes a looming trigger that will shake market confidence to its core.
Why do smart investors and the public continue to cling to a system showing clear, systemic failure?
Zang addresses the dangerous psychological crutch of “hopeium”— the irrational hope that regulators and central authorities will somehow successfully engineer a soft landing or successfully fix the underlying flaws.
Human tendency is often to avoid painful action until it is too late. Clinging to flawed fiat money systems, despite clear evidence of their imminent failure, is a critical error that perpetuates risky behavior.
When the market reset arrives, those relying on hope and paper promises will bear the brunt of the financial devastation.
The time to transition liquid wealth into tangible, enduring assets—primarily physical gold and silver—is now, before the credibility gap explodes into a full-scale liquidity crisis.
Want to understand the full implications of data manipulation, stablecoin risk, and how to position yourself for the inevitable financial reset?
Watch the full Kitco News interview with Lynette Zang for further insights and information.