🚨 Professor Jiang Was Right: The U.S. Is Running a Textbook Ponzi Scheme and Petrodollar Is Under Real Stress
Professor Jiang warned that America’s debt system works like a giant Ponzi scheme. Scott Bessent just proved him right in real time.
The UK, China, Japan, South Korea and others are now selling U.S. Treasuries. When sellers outnumber buyers, the price of the bonds drops… and the interest rate (the “yield”) shoots up. Higher yields mean it suddenly costs America a lot more to borrow money.
So what does Treasury Secretary Scott Bessent do?
He starts buying those same long-term bonds himself to prop up the price and keep yields from exploding even higher. Here the government is using its own money (or newly created money) to buy its own debt because foreigners no longer want it. The music is slowing down.
For 50 years the system worked like this: Gulf countries agreed to sell oil only in U.S. dollars. That forced every country in the world to keep holding dollars as reserves and buying U.S. Treasuries just so they could buy oil. It was the secret engine that kept demand for American debt alive.
That engine is now sputtering.
Saudi Arabia just recorded zero oil sales to the United States for the first time ever. Gulf countries are struggling to sell oil at the same scale, and the old “you must use dollars” rule is showing massive cracks.
When the world no longer needs as many dollars to buy oil, and when big countries stop buying America’s long-term debt… the whole system that has kept U.S. borrowing cheap for decades starts to break.
That’s what we’re watching in real time.
Not a conspiracy. Just math and incentives finally catching up.
🇺🇸🇺🇸🧐🤔“AND YOU STILL DARE TO OPEN YOUR MOUTH…”
Sasha Legerman: This is too accurate not to share.
This Australian’s response to Trump’s rant that “NATO does nothing for America” is absolutely devastating:
“Mate. You run a country where 600,000 homeless people will sleep on the streets tonight.
A country where 40% of adults can’t cover a $400 emergency without borrowing money.
A country where insulin costs more than a car payment, and people ration it just to stay alive.
A country where medical debt is the number one cause of bankruptcy.
A country where women die in hospital parking lots because doctors are too afraid of abortion laws to treat miscarriages.
You imprison more of your own citizens than any country on Earth.
More than China. More than Russia. More than North Korea.
In the land of the free, 2 million people sit in cages, and a quarter of them haven’t even been convicted of anything.
They’re simply too poor to afford bail.
Your life expectancy is declining. You’re the only developed nation where that’s happening.
Your infant mortality rate is worse than Cuba’s.
Your children practice active shooter drills between math and English classes while you sell defense stocks to your friends.
Your minimum wage hasn’t changed in 15 years.
Your teachers work two jobs, your veterans sleep under bridges, and you just spent a trillion dollars flattening a country that never attacked you.
And now a convicted criminal — found liable for sexual abuse, defending a pedophile, sleeping with a porn star, and running the biggest dumpster-fire campaign since the Taliban — is thanking you for yet another disaster.
And you call Greenland badly governed?
Greenland has universal healthcare. Free education. One of the lowest incarceration rates in the world.
Nobody there goes bankrupt because they got sick. Nobody dies in a waiting room because insurance refused treatment.
‘NATO wasn’t there when we needed them.’
When exactly was that, champ?
September 11?
Because NATO invoked Article 5 for the first and only time in history FOR YOU.
Soldiers from dozens of countries deployed, fought, bled, and died in Afghanistan FOR YOU.
Australia wasn’t even in NATO, and we still showed up. For twenty years.
And then you left at 2 a.m. without telling anyone and left everybody else to clean up the mess.
You don’t care that a great nation is being terrorized by your friend, and you haven’t shown it a single ounce of sympathy.
So maybe before calling other countries badly governed, take a look at your own backyard, you aluminum siding salesman with a spray tan.
The only thing badly managed in this picture is your damn mouth.
And you still dare to lecture the rest of the world?”