"The Current U.S. Debt And Currency
Crisis Are Going Beyond Nuclear"
by Gregory Mannarino
"As of now, January 2026, the United States is functionally and totally dependent on debt expansion just to operate… this is the new baseline of America. The CON-gressional Budget Office (CBO) long-run math shows persistently large and expanding deficits moving forward…. and a debt path that continues to rise over time with compounding interest… and that means new debt obligations that will not only expand, but will also need to be refinanced.
This is no longer just a debt problem. It’s a debt problem and a currency crisis simultaneously… accelerating. Result? An economy trapped, crushed, and a middle-class paying for all of it. Once a system is functionally dependent on debt expansion, it becomes dependent on rate suppression and liquidity support. End result? An economic freefall. (You may want to see this: Click here.)
Once you accept reality, you understand the next truth. Dollar devaluation is not a side effect. It’s the mechanism. That’s the currency crisis… because the “solution” is a controlled loss of purchasing power. (A slow-motion transfer from savers and wage earners to the debt machine).
Housing/Real-Estate: We’re now watching the operating model play out again in housing/real-estate! (In Real Time: Click here.) As you already know, Trump has ordered the government to buy the Fed’s runoff of MBS. This mechanism creates a government-controlled housing channel positioned to step in as the substitute bid. Result? The government now buying “Fed runoff,” effectively replaces the missing natural buyer with a public-sponsored buyer and it socializes risk.
Let’s break that down in plain language. Fed steps back, Government steps in with cash supplied by the central bank to buy MBS. That’s not just artificial demand…
1. That’s price support, and
2. That’s distorted price discovery.
And 3. It shifts risk where it always gets shifted in this regime… onto the public balance sheet.
Call it what it is... socialized risk/Socialism.
Every time the system proves it cannot function without intervention, it confirms what we have been warning about for over a decade. Markets are being supported… and the currency is being sacrificed.
The Fallout Spreads Out: The system issues more debt to operate. Then it suppresses rates to keep that debt serviceable. Then it supports liquidity when stress hits. Then it shifts risk onto the public. And the currency absorbs the cost through devaluation. Here again is the pattern: Crisis, Debt, Support, Debasement, Repeat.
“The Global Angle.” This doesn’t stay contained, and we are already seeing the effect… When the reserve currency starts leaning harder on debasement to keep the machine running, the entire world gets pulled into a competitive devaluation environment. This is the operating model. As a current example… Venezuela. They manufacture necessity, (we have taken over a country) therefore expanding US commitments. This in turn expands debt issuance and further liabilities. This in turn expands into more intervention, (more funding), this in turn accelerates currency devaluation. The dollar has been fully weaponized against you/the American people… all while the propaganda to the contrary expands. (You must see this- click here.)
Dollar devaluation is a weapon of mass destruction as it attacks the foundation of ordinary life… your ability to save, to plan, to prosper. It turns every paycheck into less food, less security, less future. It is a silent tax that never gets voted on, never gets debated honestly, and never stops collecting. And the more this debt-expansion/currency debasement regime depends on further intervention to function… the more it must debase…Result? A nation is left with levitating markets and a hollowed-out zombified economy and a people who never fully understood what happened."
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