We’re Staring into a Debt Deflation Abyss
We’re Staring into a Debt Deflation Abyss
Liberty and Finance: 6-13-2025
For four decades, the bond market reigned supreme, a testament to falling interest rates and a seemingly invincible U.S. dollar. But according to veteran market analyst Greg Weldon, that era is decisively over.
In a recent interview with Liberty and Finance, Weldon presented a compelling case for major structural shifts in the financial system, driven by soaring debt, a weakening dollar, and escalating geopolitical risks.
Weldon argues that we’ve reached a critical juncture, drawing parallels to pivotal moments in economic history like the Volcker era and the Plaza Accord. He contends that the sheer magnitude of accumulated debt has pushed us past a “debt event horizon,” a point from which recovery through traditional means may be impossible.
This unprecedented level of indebtedness, combined with the Federal Reserve’s aggressive money printing, is fundamentally undermining the U.S. dollar’s global dominance.
Against this backdrop of economic uncertainty, Weldon sees a compelling case for commodities, particularly precious and strategic metals. He points to central bank gold buying, persistent inflation, and heightened geopolitical instability as powerful tailwinds that will drive significant price appreciation in the years ahead.
Gold, often seen as a hedge against inflation and a store of value during times of crisis, is poised to benefit from these trends.
However, Weldon emphasizes the potential for even more dramatic gains in silver and platinum, which are breaking out alongside the falling dollar, despite not being favored by central banks.
Weldon’s bullish outlook on silver and platinum challenges conventional wisdom, as these metals are often overlooked in favor of gold. However, he argues that their unique combination of industrial utility and scarcity makes them particularly attractive in the current environment.
While central banks typically focus on gold reserves, the growing industrial demand for silver and platinum is creating a powerful undercurrent of demand. This, coupled with constrained supply due to mine closures and reduced investment, could lead to significant price appreciation, potentially outpacing gold in the long run.
In this environment of profound change, Weldon stresses the need for active, globally aware investing. He argues that traditional investment strategies, heavily reliant on bonds and a strong dollar, are unlikely to keep pace with inflation, let alone generate meaningful returns.
Instead, he advocates for a diversified portfolio that includes exposure to commodities, especially those positioned to benefit from the energy transition and geopolitical shifts. He also emphasizes the importance of understanding global macroeconomic trends and being prepared for increased market volatility.
Beyond the financial realm, Weldon warns of deeper societal fractures and rising geopolitical tensions that could further destabilize markets. He believes that the current economic imbalances are exacerbating existing social divisions, leading to increased unrest and uncertainty.
In conclusion, Greg Weldon’s analysis paints a stark picture of the financial system at a critical inflection point. He believes the 40-year bond bull market is over, and a new era of rising commodity prices and increased volatility is upon us.
By understanding these forces and adopting a proactive investment approach, investors can protect their wealth and potentially capitalize on the opportunities that lie ahead. However, it is a landscape that demands vigilance, global awareness, and a willingness to challenge conventional wisdom. The future will reward those who are prepared for the coming changes.