ilmscore | Prediction Details
"First, US interest rates could go up making mortgages, credit cards and of course car loans a lot more expensive. So, the Federal Reserve might have to step in and start buying US treasuries to stabilize the bond market. It's basically quantitative easing all over again, QE 2.0. And we've seen what happens when the Fed prints money. Any day now, we could see the Fed step in to do this. But the worst case scenario is a full-blown financial decoupling where the US and China stop trusting each other's money completely. And that's how you get two separate economic systems or two world reserve currencies."
By Andrei Jikh | April 14, 2025 | Correct
From video
China’s Plan to Destroy the Dollar (And It’s Kind of Working) 00:12:27 - 00:13:05
Interpreted Prediction
If China continues selling US treasuries, interest rates will rise. The Fed might initiate QE 2.0. The worst-case scenario is a complete financial decoupling between the US and China, leading to separate economic systems and potentially multiple reserve currencies.
AI Evaluation Notes
The prediction stated that if China continued selling US treasuries, interest rates would rise, potentially leading to the Fed initiating QE 2.0 and a possible financial decoupling. While a full financial decoupling hasn't occurred, China has reduced its holdings of US treasuries, and there have been periods of increased interest rates and discussions around further quantitative easing measures by the Federal Reserve [cite: i].

Prediction Details

Topic
Financial Decoupling

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