The End of Safe Assets? Why Gold, Bitcoin, and AI Are Rewriting the Rules of the Global Economy
The Bond Market Is the Real Bubble And It's Starting to Pop
Forget tech stocks. Forget crypto hype.
The real systemic risk right now is hiding in plain sight: the bond market.
For decades, U.S. Treasuries were treated as “risk-free.” The bedrock of retirement portfolios, pension funds, and sovereign wealth strategies.
But here’s the truth no one wants to admit:
Bonds, yes, even U.S. Treasuries, are no longer safe.
The long-term bond ETF (TLT) is down 47% in just five years. Even with dividends, you’ve still lost 38%.
That’s not just volatility. That’s destruction of wealth, inside an asset class once marketed as a safe haven.
Worse? Adjust for inflation, and you’re even deeper underwater.
Why Governments Will Sacrifice the Currency (Not the Bonds)
When nations are trapped between a collapsing bond market and a weakening currency, they almost always make the same choice:
They print.
They'll let the currency weaken to prop up their bond market, because losing control of bonds means losing the entire financial system.
But here’s the kicker: eventually, this game ends with both breaking.
We’re seeing this in real time with rising fiscal deficits, bloated debt, and bond vigilantes demanding higher yields just to lend money to governments.
And guess who pays for it?
You. Me. The middle class.
Through inflation, higher taxes, and shrinking purchasing power.
Gold Is Rising Not Just in Price, But in Power
Here’s a stat that stopped me in my tracks:
Gold now makes up 20% of global FX reserves (when counted at market value).
The U.S. dollar? Just under 46%.
The euro? 16%.
At this pace, gold could overtake the U.S. dollar as the world’s #1 reserve asset within 5 years.
Why?
Because countries like China and Russia are slowly unloading U.S. Treasuries… and buying physical gold.
They’re pricing oil and commodities in yuan, backed by gold, quietly breaking the petrodollar without a single headline.
This is the unwind. And it’s not a theory. It’s happening.
Plan B: Financial Repression
The U.S. government already tried to “term out” its debt by pushing investors into long-dated bonds.
That didn’t work.
So here comes Plan B:
Run big deficits
Keep interest rates artificially low
And let inflation quietly erode the debt
It’s called financial repression. And it worked in the 1940s and ’50s.
But it only works if you’re the one doing the repressing, not if you’re the saver.
That’s why owning outside money, like gold, Bitcoin, or productive land, is no longer a fringe strategy.
It’s survival.
AI: The Silent Disruptor No One Is Pricing In
Everyone’s obsessed with AI’s potential.
But here’s what economists aren’t talking about:
AI could be massively deflationary, especially for white-collar workers.
Imagine a world where millions of support staff, analysts, junior engineers, and marketers are replaced by AI tools.
That’s not just a jobs issue, it’s a debt issue.
When people lose income, they default on loans.
When loans default, banks start to panic.
And history shows us what happens next:
The Fed steps in, buys the bad assets, and “papers over” the crisis.
Just like 2008. Just like 2020.
Except now, we’re running out of road.
Retirement Accounts Still Matter, But Choose Wisely
Even in this environment, contributing to retirement accounts still makes sense.
They offer:
Tax advantages
Time-based compounding
And a chance to position your capital in smarter ways
Just make sure what’s inside isn’t all bonds and stale index funds.
Instead, consider exposure to:
Gold ETFs
Bitcoin ETFs or public miners
Land REITs
Productive equities tied to real innovation
A New Global Playbook Is Forming
We’re witnessing the end of one system, and the birth of another.
Gold, Bitcoin, land, and code are becoming the foundation of the next financial era.
The old rules, 60/40 portfolios, risk-free bonds, fiat money, they’re losing relevance by the day.
And for retail investors?
There’s never been a better time to front-run the institutions.
They still need permission.
You just need conviction.
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Because this decade won’t reward hesitation.
It will reward conviction and action.
Final Thought
There’s a quote I keep coming back to:
“Hard times create strong assets. Weak currencies create strong convictions.”
Stay alert. Stay curious.
And don’t be afraid to step outside the system… before it steps on you.
Until next week,
Yasin Nizami