Collapse Spiral

Collapse Spiral

by Germanico Vaca

Trump's economic policies, combined with Musk’s actions, are creating a self-destructive feedback loop in the U.S. economy. Instead of stimulating productive investment, fear and uncertainty are driving capital into speculation, extraction, and non-productive assets like gold, silver, and cryptocurrencies.

The Real Problem: The U.S. Dollar is Being "Counterfeited" in the Open

Trump and Musk seemed completely ignorant of the effects of crypto and meme tokens diluting the U.S. dollar when it is critical to understand that The Federal Reserve no longer controls money creation, as crypto operates as an uncontrolled money-printing machine, devaluing the dollar in real-time. If the dollar collapses all cryptos collapse and will be valued at 00000. No matter what the valuation may be of bitcoin or Ethereum, if they are all valued and traded in dollars then their nominal value is an illusion.

1. Crypto is Functionally a Parallel U.S. Dollar System
• When people put dollars into Bitcoin, Ethereum, meme coins, or stablecoins, those dollars don’t stay in the economy—they get parked in a speculation bubble.
• Worse, leveraged crypto trading multiplies the problem, creating synthetic dollars via futures and derivatives markets that the Fed cannot regulate.
• The result? The U.S. economy bleeds capital into speculation instead of production. Yet these two clowns with the assistance of dumb as a rock Lummis they want to place trillions on cryptos? How dumb are they?
2. Defense Spending: A Dead-End Economy
• Trillions are being funneled into Palantir, Lockheed Martin, SpaceX, and spy agencies, but this does nothing to generate wealth for ordinary people.
• Instead of building infrastructure, housing, or energy projects, money is spent on surveillance, AI-driven control systems, and corporate warfare.
• This is unsustainable—defense spending alone cannot sustain an economy if the rest of the nation is collapsing.

The Collapse Spiral: The Dangerous Chain Reaction Ahead

If Trump continues these policies of absurdity, the U.S. will self-destruct economically in ways that mirror the fall of the Soviet Union:

1. Social Spending Cuts Will Kill the Consumer Economy
• Cutting Medicare, Medicaid, housing, and social programs while deporting millions of workers is a recipe for retail and real estate collapse.
• The U.S. economy is 70% consumer-driven, and eliminating spending power will crash GDP.
2. Tax Cuts for the Rich Make the Deficit Problem Worse
• Instead of increasing taxes on the ultra-wealthy, Trump’s plan to slash taxes for billionaires will force more borrowing, exploding the debt when an increase of 3% to their taxes will solve a lot of problems.
• The U.S. deficit will grow uncontrollably, leading to hyperinflationary pressures or a sovereign debt crisis.
3. The Crypto Bomb Will Detonate at Any Moment
• If Trump embraces crypto, we could see a massive artificial bubble that worsens the dollar dilution problem. Because cryptos are bought on credit, that will burst the derivatives bubble and will collapse the banks.
• If Trump rejects crypto, the collapse of overleveraged positions will wipe out trillions, causing another 2008-style crash.
• Either way, crypto is now a systemic risk that no one is acknowledging.
4. No Global Allies Left to Save the U.S.
• Trump’s tariffs and diplomatic destruction have left China, Russia, Latin America, Europe, and even Canada looking for alternatives to the U.S.
• If a major crisis hits, no country will rush to bail out the U.S. the way they did in past financial crises.
• The BRICS alternative economic system is growing fast, meaning the U.S. will have nowhere to turn if the dollar loses dominance.

What Comes Next?

If Trump is not removed soon and these economic policies continue, we are heading for chaos, anarchy, and collapse.

• By mid-2025, the U.S. could experience a full-scale economic meltdown.
• Mass unemployment, hyperinflation, and capital flight will accelerate, with millions thrown into extreme poverty.
• A political and social breakdown will follow, making the country ungovernable.

Final Thought: The U.S. Economy is in a Death Spiral

Right now, the U.S. is not just making bad decisions—it is actively destroying itself. The combination of:

• Crypto-fueled dollar dilution
• Massive speculation instead of productive investment
• Excessive military spending while gutting social services
• Deportation-driven economic collapse
• Isolation from global allies
  …is creating the perfect storm for the greatest economic crisis in U.S. history.

Unless radical changes happen immediately, the collapse will start by June 6, 2025, that may actually be optimistic. It could happen even sooner. By June 28 2026 we will be in total World War III.