HYPERINFLATION WARNING: WHY 1% INTEREST RATES SPELL DISASTER

Eric Blair Jul 15, 25

The CPI Farce and the Reality of a 30% Inflation Economy

The Consumer Price Index report, due Tuesday, will no doubt be heralded by government economists as evidence of their “successful” management of inflation. Don’t be fooled. Official statistics have been massaged, redefined, and diluted to conceal what you and I feel every time we fill a shopping cart or swipe a credit card. The reality is that real-world inflation is closer to 30%, and it’s shredding the purchasing power of every wage earner in this country. Gas, groceries, rent, insurance—every necessity costs more, and yet policymakers pretend this is all “transitory.” The truth is painfully simple: the dollar is losing credibility faster than Washington can issue press releases.

Interest Rates: The Administration’s Tightrope Act

Federal Reserve officials continue their hollow theater of “data dependence,” insisting that there is no pressing need to cut rates. Meanwhile, the same institutions that fueled the everything bubble—banks gorged on cheap credit, corporations drunk on debt—are teetering on the edge. The administration’s quiet plan is to slash rates back toward 1%, a move so reckless it could trigger an outright hyperinflationary collapse. Some voices of reason—though they are fewer by the day—still call for higher rates to purge the market of zombie companies and restore some semblance of sanity to housing costs. But make no mistake: the easy-money camp is winning.

Geopolitical Overreach and the Decline of Dollar Dominance

Consider the latest stunt: former President Trump threatening 100% tariffs on Russia’s trading partners unless peace is brokered in Ukraine within 50 days. It sounds tough. In practice, it reveals how little leverage Washington has left. Even as we ship billions in drones and munitions to prolong the war, Russia’s markets rally in defiance. Meanwhile, nations from China to Brazil accelerate plans to settle trade in local currencies and gold, turning away from the dollar. The BRICS coalition has become the financial Rosetta Stone for a world ready to escape U.S. hegemony.

America’s Technological Mirage

While the Pentagon touts its military supremacy, the reality is more embarrassing by the day. We watched a Chinese surveillance balloon drift across the continental U.S. without consequence. Now, The New Yorker reports America is falling behind in the drone wars of the 21st century. Our rivals are deploying AI-enhanced systems that make our expensive hardware look outdated. This is more than a military embarrassment—it’s a warning that our technological edge, and by extension our economic leverage, is slipping away.

Housing: A Trap Disguised as Prosperity

Cheap borrowing and speculative mania fueled a housing bubble that priced out millions of Americans. Now, trapped in sub-3% mortgages with nowhere to go, homeowners are watching insurance, taxes, and maintenance costs explode. The notion they could simply refinance is proving a cruel illusion. If rates drop again, the bubble may inflate further—pushing housing costs into the stratosphere and making future collapse even more catastrophic.

Travel, the Dollar, and the New Luxury

The dollar has posted its steepest decline in half a century. Overseas, Americans find themselves treated not as privileged tourists but as budget-conscious bargain hunters. Even domestic travel has become a privilege: hotel rates topping $200 a night, rental cars more expensive than mortgages used to be, and airfares padded with hidden fees. This is what currency decay looks like in practice—every dollar buys less.

Middle-Class Decay and the New Face of Food Insecurity

Vacant storefronts are multiplying, even in wealthy zip codes. Food banks are reporting record demand and dwindling supplies. Many middle-class families—who still drive leased SUVs and pretend everything is fine—are quietly supplementing groceries with donated food. This is the dark underbelly of official optimism: an economy hollowed out by decades of debt, speculation, and policy failure.

A House of Cards Ready to Fall

As we look toward the back half of 2025, expect volatility on all fronts. A bifurcated economy will deliver collapsing asset prices in housing and used cars—while essentials like food and utilities go vertical. Political scandals, such as the Epstein files, only underscore how out of touch and corrupt the ruling class has become. If you’re waiting for Washington to save you, prepare for disappointment.

Take Back Control

This is not the time for complacency. If you want to protect your wealth and your family, you need actionable steps. I urge you to read Bill Brocius’ essential book, End of Banking As You Know It. Download the free guide, 7 Steps to Protect Your Account from Bank Failure, and consider joining Bill’s Inner Circle newsletter for just $19.95. You’ll gain direct access to insights the mainstream media will never share.

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