No More Central Bank

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The seeds of debate over repealing the Federal Reserve Act of 1913 are being planted right now, though neither the general public nor Wall Street seems fully prepared for the upheaval it could bring.

As discussions simmer, the focus turns to the fiscal challenges inherited by the current administration, due to the insane Radical Left that seized power in 2021.

Former Treasury Secretary Janet Yellen's strategies CAUSED mounting national debt, leaving her successor, Scott Bessent, with substantial cleanup work.

Yellen's debt management emphasized short-term Treasury bills to fund operations during a period of rising deficits and debt-ceiling tensions. She basically left Bessent a pile of debt to refinance at the highest interest rates in two decades - she was a LOSER!

This approach gave the U.S. higher refinancing risks as interest rates climbed, inflating costs for taxpayers, which Trump is offsetting with tariffs.

With U.S. debt hitting $37 trillion and annual interest payments SURPASSING $1 trillion, her decisions have left all of us a giant mess.

Billionaire investor Stanley Druckenmiller described it as one of the Treasury's most significant missteps, noting the failure to lock in low long-term rates (around 0.5–1.5% in 2020–2021).

Instead, T-bill issuance ballooned from $2.5 trillion in 2020 to over $6 trillion by 2024, leading to rollovers at rates near 5%. Estimates suggest this could add $1–2 trillion to debt expenses over the next decade, straining budgets and contributing to sectors like housing facing frozen activity due to elevated borrowing costs. That's why Trump must make plans to allow patriots who love the country to have control over finances, not the Deep State Elites.

Biden's incompetent administration paved the way for China's Communist Party (CCP) to pursue aggressive measures to undermine the dollar's global dominance, exacerbating these pressures. Here's how:

1. Bilateral Currency Swaps and Local Currency Trade: China has established swap lines with more than 40 nations, exceeding $500 billion in value, facilitating RMB-based settlements. For example, since 2018, over 90% of China-Russia trade uses local currencies, sidestepping the dollar and shielding against sanctions.

This has reduced the USD's share in some BRICS transactions from 80% to about 58%!

2. Diversification of Reserves and Gold Accumulation: The People's Bank of China has trimmed USD holdings in its $3.2 trillion reserves from 79% in 2005 to roughly 59% by 2023, while aggressively buying gold—over 2,000 tons since 2010, making it the top official holder with 2,262 tons as of 2024. This shift hedges against dollar volatility and bolsters alternatives.

3. Belt and Road Initiative (BRI) and RMB Internationalization: Launched in 2013, the BRI has disbursed over $1 trillion in loans to 150 countries, increasingly in RMB, to expand its currency's reach.

4. Digital Yuan (e-CNY) and Alternative Payment Systems: Rolled out in 2020 and now used by 260 million people, the e-CNY enables direct cross-border transactions, bypassing USD systems like SWIFT. BRICS pilots further cut costs and reliance.

5. BRICS Alliance and De-Dollarization Push: Expanded BRICS (now including Saudi Arabia and others) represents 45% of the world's population.

At the 2023 Johannesburg summit, members committed to local currency trade, with China's New Development Bank issuing $41 billion in loans outside USD frameworks.

It's obvious to me why Trump sees this as an existential threat and feels the need for tighter U.S. control over interest rates and dollar policy, shifting power from bureaucrats back to elected leaders.

The U.S. Dollar Index (DXY) has dropped about 10.8% in 2025, marking its worst first half since 1973—worse than the early 2008 crisis. Historically, top declines include 1987 (-14.3%), 2003 (-17.8%), 2004 (-12.2%), 2007 (-8.3%), and 2020 (-6.8%). If trends continue, 2025 could rank among the worst 5–10% of years, potentially exceeding 15–20% loss.

In a decade, the U.S. risks being overshadowed by advanced Chinese tech or remaining a sovereign leader—but it can't afford losses, especially on interest rates, which remain elevated.

Addressing this could involve replacing key officials or restructuring institutions, as trillions in interest payments to foreign holders drain resources. Trump is the right man for this historic hour.

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