The Debasement Trade: The Death Of Fiat Currency?

"So, for the US, net interest costs on its debt burden in 2025 exceed defense costs, an alarming milestone that puts the cost of past borrowing ahead of current military spending. For the US in particular, that is remarkable. It's probably not a one-off either, as official stats from the Congressional Budget Office project interest staying heavy for years."

"US ETF flows are on pace for a record year with State Street estimating as much as $1.4 trillion in 2025, an avalanche of automatic buying across broad equity funds."

"Vanguard's How America Saves report showed that in 2024, 64% of 401k contributions went into such funds, which are very equityheavy for most workers. That's basically a standing order to buy equities every paycheck. Congress also hardwired fresh inflows with auto enrollment rules for new 401ks starting in 2025, pushing 3 to 10% of pay straight into markets unless workers opt out."

"Citadel Securities expects US companies to repurchase roughly $1 trillion of their own shares in 2025."