The Great Melt Up: Exploding Debt, Bank Failures, and the Rush to Gold
Something big is happening, and if you’re paying attention, you can feel it. The fuse has been lit: exploding national debt, soaring gold prices, banks teetering, and interest rates refusing to come down. We’re being told everything is under control, but is it? Or are we racing towards a tipping point with inflation, high interest rates, and economic instability?
And here’s the kicker. Treasury bonds—the supposed “safest investment”—are collapsing. Banks are sitting on huge unrealized losses, ticking time bombs. Gold is at an all-time high. Some say it’s all just market noise. But others, like Brian Kim from ClearValueTax, believe we’re beginning what he calls the "Great Meltup"—a hyperinflationary boom that ends with a crash.
"I want to share more about this upcoming “meltup.” Think of it like this: we had the Great Recession, and now, the Great Meltup is on its way. It’s not just a possibility; it’s inevitable. The Federal Reserve and the government have chosen hyperinflation over deflation, meaning it’s likely to get worse—exponentially worse.
My belief is that the U.S. government may manufacture a crisis to refinance its debt.", Brian Kim from ClearValueTax
But what if it’s more than that? What if what’s coming isn’t just a meltup but the beginning of a reset of our financial system?
The Reality of Our Debt
Let’s talk about the elephant in the room: U.S. National Debt. This isn’t just numbers on a screen. For decades, the government has been piling up debt without a plan to pay it back, and now the bill is coming due. On October 17 alone, $500 billion was added to the national debt—in just three weeks. At this rate, it’s projected to grow by $1 trillion every 100 days.
Economists often worry when debt exceeds 100% of GDP (Gross Domestic Product), and the U.S. is already at 121% and climbing. This means that as debt grows, and interest payments eat up more of the budget, there’s less for other services. It’s more taxes, fewer services, and, if that’s not enough, printing more money just to keep up.
The Great Meltup Explained
Brian Kim calls this the “great meltup.” His theory is that, as national debt spirals out of control, hyperinflation becomes the default policy, either as an intentional move or an inevitable outcome of unchecked spending and unsustainable debt. As everything gets more expensive, the dollars in your pocket lose value, making the national debt easier to pay down with devalued dollars.
This is why inflation, while problematic for us, can be convenient for debt-laden governments. Imagine paying off trillions with dollars that aren’t worth as much—clever but unsettling. It lowers the debt burden on paper, but everyday people end up paying for it with lost purchasing power and savings.
Rising Interest Rates & Bond Market Warning Signs
Despite the Fed lowering its benchmark rate, borrowing costs are still high, with 30-year fixed mortgage rates now above 7%. This disconnect between Fed policy and real-world borrowing is concerning. Lenders are worried not only about inflation but also about credit risk, the possibility that borrowers won’t pay back their loans. With banks facing instability, lenders demand higher interest rates to balance this extra risk.
The bond market is flashing warning signs too. Treasury bond prices are falling, which pushes yields up, and as yields rise, borrowing costs for everyone go up. Countries like China and Japan, which used to stabilize their own currencies by buying U.S. treasuries, are backing off. This means the U.S. treasury has to sell bonds at lower prices to attract buyers, which is why yields are spiking.
If bonds are no longer “safe,” what is?
What Does This Mean for You?
If you’re a homeowner or a small business owner, you’ll feel this squeeze. Refinancing likely won’t get cheaper anytime soon. And if you have credit card debt, now’s the time to get serious about paying it down since high-interest rates are here to stay.
Another issue is with the banks. Many are sitting on massive unrealized losses, primarily in treasury bonds and commercial real estate. If these investments don’t turn around, banks could face major financial hits, and we could see a wave of bank failures.
Gold, Silver, and the Shift in Trust
As gold and silver prices hit new highs, many view them as the safest assets right now. People are waking up and losing faith in fiat currency. Historically, whenever governments overextended, gold and silver became the go-to safety nets. With their value as inflation hedges, people flock to these metals in times of uncertainty.
But, while rising gold and silver prices offer a hedge, they also signal something bigger might be coming. It’s not just inflation anymore; it’s about financial survival.
What’s Next? A Financial System Reset?
With skyrocketing government debt, high-interest rates, and a shaky bond market, these issues aren’t isolated. Together, they paint a picture of a possible financial reset. As Brian Kim and others predict, this “meltup” may eventually lead to the end of the current financial system, potentially making way for new currencies—perhaps central bank digital currencies or even a return to a gold-backed system.
Final Thoughts: Steps to Consider Now
With all of these challenges, there are some steps to consider for financial stability:
- Diversify Savings: Consider spreading your savings across different banks, ideally keeping balances under FDIC limits.
- Gold and Silver: While these aren’t typical investments, some see them as insurance against financial instability.
- Debt Reduction: High-interest debt can be costly to carry, especially if rates stay high. Paying down credit card debt and loans may offer more stability.
- Stay Informed: Watch treasury yields and FDIC updates, and be ready to adjust if needed.
As we navigate these unpredictable times, staying informed, adaptable, and cautious may help us brace for whatever comes next.
Let me know your thoughts in the YouTube video comment section—are we witnessing the early stages of the Great Meltup?
