5 Economic Predictions and Warnings for 2025 You Must Know
In 2025, The Tech Bubble Is Set To Pop.
2025 will host the beginning of the end of an era of “casino capitalism,” characterized by accounting gimmicks, insane valuations, and massive stock buybacks. Retail buyers continue piling in at the top of the market as sophisticated investors take profits and exit this bubble.
U.S. equity markets are no longer rational funding mechanisms; they have become high-risk momentum-chasing casino gambling. When the crash happens, the fake news sound bite will be Pump, Dump, and Blame Trump.
1.) Market Correction: When big tech's AI bubble explodes, the U.S. stock markets will experience a substantial correction, 50% or more.
2.) Recession Ahead: Despite Federal Reserve policies, the U.S. economy will enter a deeper recession as inflation and interest rates continue to rise.
3.) World Leader Turnover: Many unpopular world leaders will exit; USA’s Biden, France's Macron, Canada's Trudeau, Germany's Scholz, Australia’s Albanese, and Ukraine's Zelenskyy will all be removed from their ‘leadership’ roles.
4.) BRICS Take on U.S. Dollar: A global plan for de-dollarization and multipolarity will gain momentum. Led by the BRICS Plus nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates—are set to launch a currency exchangeable for a basket of commodities, like the “Gold Standard.”
5.) Media Bias Upheaval: After losing more multi-million-dollar lawsuits and the little credibility the far-left mainstream media had left, many outlets will be forced to consolidate or close. Numerous programs will be canceled, and thousands of employees better “learn to code.”
Milton Friedman, a Nobel Memorial Prize in Economic Sciences winner, famously asserted that “Inflation is created in Washington, and only Government creates inflation.”
The United States has nearly $300 trillion in debt, including Social Security and Medicare liabilities. Both programs have been significantly drained and are now essentially insolvent. Nonetheless, the U.S. government is legally obligated to repay the money it has plundered from these taxpayer-funded programs.
The CEO suites have become flush with payouts, creating many new billionaires. However, when these stock buyback earnings cannibalizations explode, the employees, retail shareholders, and taxpayers will ultimately be left to pick up the tab.
In 2024, Janet Yellen's Treasury paid over $1.1 trillion in interest alone on the massive debt we now own. Yellen unlawfully shifted a large portion of treasury issuance to shorter maturities, thereby minimizing the average interest rate paid to an average of 3.32% on our $36 trillion-plus debt created by Yellen’s policies.
Since September, the Federal Reserve has cut interest rates from 5.5% to 4.5%, yet the 10-year Treasury note yields have risen from 3.60% to 4.65%. That’s over 100 basis points!
Why higher interest rates matter for your family.
The debt situation poses significant challenges for small businesses and consumers, particularly those looking for mortgages, as they will face increased borrowing costs. The 10-year note sets the interest rates on small business loans and mortgage products. Given the enormous volume of U.S. debt expected to be issued in 2025, interest rates will remain high. These are concerning inflationary warning signs that retail stock investors continue ignoring at their peril.
For decades, Federal Reserve leaders such as Ben Bernanke, Jerome Powell, and Janet Yellen have assured us that “inflation is transitory” and “the emergency stimulus (money printing) is only temporary.”
Additionally, Joe Biden promised us that his Inflation Reduction Act and the trillions spent on other unlawful and fiscally reckless programs would not be inflationary. None of the above claims were true, and inflationary policies and excessive debt will spark a crisis on Trump’s watch.
The inflationary damage to the U.S. economy caused by four years of the Biden administration’s policies was substantial. Yellen's Treasury leadership role under Biden and her Fed policies increased the deficit by at least $15 trillion. As living costs continue to spiral out of control, nearly 50% of Americans live paycheck to paycheck, while Yellen has received over $8 million in “speaking fees.”
While Milton Friedman remains widely regarded as one of the greatest economists of all time, in 2024, many labeled Janet Yellen as the worst economist in history. As a result, she is being put out to pasture. Yellen will continue earning millions through speaking engagements and book deals. To many, this appears to be a legalized kickback scheme.
It’s not all doom and gloom for 2025. While we must remain cautious, exciting opportunities are on the horizon that will help us create generational wealth during times of crisis. We must be ready to seize these moments as they arise.
Nevertheless, proceed with caution in 2025.