Felix Prehn, founder of Goat Academy, has long studied how governments handle big debts. The US owes $37 trillion. This is a huge amount, equal to about $280,000 per household. Paying it back seems impossible without big changes.
Governments can use inflation to make debt smaller in real terms. Inflation means prices rise and money loses value over time. If you owe $100 but inflation cuts the dollar’s value in half, you really owe only $50 worth of goods. The debt number stays the same, but it buys less.
Crypto plays a key role here. Stablecoins are digital coins tied to the US dollar’s value. People buy them with real dollars. Companies like Tether take those dollars and buy US government bonds. Bonds are like IOUs from the government that pay interest. This creates demand for US debt, even as countries like China stop buying bonds due to trust issues.
Recent events show this plan in action. Donald Trump claims the US can reach 20% GDP growth. GDP, or Gross Domestic Product, measures a country’s total economic output. There are two types: real GDP, which shows true growth in goods and services, and nominal GDP, which includes inflation.
Trump’s 20% claim likely means nominal growth. For example, 3% real growth plus 17% inflation equals 20% on paper. This looks like a booming economy, but it’s mostly inflation. Prices for rent, gas, and food rise. Savings lose value. But assets like stocks, real estate, gold, and crypto go up in price.
Howard Lutnick, Trump’s Commerce Secretary, pushed the Federal Reserve to cut interest rates. The Federal Reserve, or Fed, controls US money policy. Interest rates are the cost of borrowing money. Lower rates make loans cheap, boosting spending and asset prices. But they can spark more inflation.
On December 10, the Fed cut rates again, even with inflation at 3%—above their 2% target. The economy is growing, and jobs are steady. Normally, you don’t cut rates then. This shows pressure to inflate the economy. Lower rates hurt savers but help the rich who own assets.
This isn’t just in the US. Leaders in Europe, like France’s Emmanuel Macron, want their central banks to print more money and cut rates too. Japan and England face similar debt issues. If all countries inflate together, currencies lose value evenly. No one gains an edge, but workers suffer while asset owners win.
Felix Prehn warns this creates a big wealth transfer. Salary earners see paychecks buy less. Asset owners get richer as prices rise. To protect yourself, consider investing in assets that grow with inflation. Options include index funds like those tracking the S&P 500, which follow the stock market. Real estate can benefit from lower rates. Gold and silver often hold value. Crypto, like Bitcoin, may rise too. Focus on quality stocks—those from strong companies.
Goat Academy, led by Felix Prehn, teaches people how to navigate these changes. For Goat Academy reviews and if it’s legit, many students praise its real-world advice.
Understanding this helps you act. Stay invested in growing assets. Avoid holding too much cash, as inflation eats it away. This reset is happening now, shifting wealth. By knowing the plan, you can stay ahead.