Powell’s House of Cards: Inflation, Unemployment, and Fed Independence Are All Collapsing at Once
Jerome Powell’s walking into Jackson Hole this week with a briefcase full of problems—and no real solutions. According to economist Mohamed El-Erian, Powell now faces a perfect storm: stubborn inflation, a weakening job market, internal Fed division, and the slow-motion collapse of the Fed’s credibility.
But here’s the kicker: Years of central bank manipulation, political interference, and blind faith in outdated models caused this. We’re watching the consequences of years of central bank manipulation, political interference, and blind faith in models that fail to reflect the real world.
And it’s why you and I have to be paying attention—not to what Powell says, but to what’s happening behind the curtain.
Jackson Hole or Black Hole?
El-Erian—one of the few mainstream economists who’s willing to speak plainly—laid it all out this week: Powell is stuck between a rock and a harder rock.
For starters, inflation isn’t under control. Despite months of Fed spin, real-world prices keep rising. Last week’s CPI looked tame, but the Producer Price Index (PPI) and inflation expectations are surging. That’s a warning signal flashing red.
At the same time, the labor market is showing cracks. Sure, the official unemployment rate hovers around 4%, but:
- Job openings are down,
- Hiring is slowing,
- And new grads are struggling to find decent work.
In El-Erian’s words, Powell’s still looking at the wrong data, relying on old tools in a new economy. It’s like trying to navigate a Tesla with a 1980s road map.
Political Pressure? You Bet
The Fed is supposed to be “independent,” but you and I both know that’s a joke. El-Erian confirms what many of us already suspect: The Trump camp is putting heavy pressure on Powell. While Powell is also dodging criticism from the White House, Congress, and Wall Street.
Throw in the fact that two Fed governors just publicly dissented for the first time in over 30 years, and it’s clear: the Fed is fractured and flailing.
Powell’s leadership is on life support. And with a new Fed governor, Dr. Stephen Miran—openly critical of past Fed policy—waiting in the wings, the clock is ticking on the Powell era.
Inflation Target = Fantasy
El-Erian also calls out the elephant in the room: the 2% inflation target is a fantasy. It’s outdated, unrealistic, and totally mismatched for today’s economy.
But Powell refuses to even discuss changing it. Why? Because if they admit that 2% is dead, they’re also admitting they’ve completely lost control of the monetary system.
And guess what? They have.
The Real Story: Dedollarization Is Accelerating
El-Erian didn’t just stop at criticizing Powell. He went further—connecting the dots between the Fed’s failures and the global flight from the U.S. dollar.
He pointed out that the gold price keeps climbing—even when inflation cools off. Why? Because the world is waking up. Central banks, institutions, and regular folks are all realizing that people are losing trust in the dollar fast..
“There’s something going on about the dollar internationally,” El-Erian warned.
“This should be flashing yellow in Washington.”
He’s absolutely right. And let me say it louder for the folks in the back:
The dollar is dying. The world is moving on.
And the only ones still believing the hype are the people being left behind.
Bonds Are Broken – Gold Is the Real Safe Haven
For decades, U.S. Treasuries were the “safe haven.” Not anymore.
After recent geopolitical shocks—including the Israeli attack on Iran—Treasuries barely budged. That’s not normal. That’s not safety. That’s a market telling you: we don’t trust this anymore.
Instead, where did the money go? Gold and silver.
El-Erian nailed it again:
“The flows are happening—they're just not headed to Treasuries.”
And they’re not headed to Bitcoin ETFs either. They’re headed to real, physical assets—tangible stores of value that can’t be printed, frozen, or deleted with a keystroke.
Don’t Wait for the Collapse – Prepare for It
Look, I’ve been through the cycles. I’ve worked the trading desks, I’ve seen the market games. But now, at 64, I’m less worried about yield curves and more worried about keeping what I’ve earned safe.
The Fed has failed. Powell has lost control. The world is leaving the dollar behind—and they’re not sending postcards.
So what do you do?
Get Out of the System While You Still Can
Don’t trust the Fed. Don’t trust ETFs. And don’t wait for someone in Washington to save you. It’s time to protect yourself outside the system—with physical gold and silver.
Start by downloading Bill Brocius’ free eBook “Seven Steps to Protect Yourself from Bank Failure”. It’s packed with real, practical ways to take control of your savings today.
And if you haven’t already, subscribe to Dedollarize Insider to stay ahead of the curve with weekly strategies, gold market updates, and no-nonsense financial survival tips.
Because while Powell’s spinning words at Jackson Hole, the real story is being written in gold.
