Victory over inflation through hyperinflation. Does it actually happen?

At the post of Federal Reserve chair is Kevin Warsh—this is a crypto guy. Who invested his funds in projects like Compound, dydx, and a number of other projects. But that’s not the point. The taste for risk and quick money in the head of the Fed chair—and on top of that, he’s a Trump appointee. An interesting combination. Yes, yes, I understand you perfectly: everyone’s sick of this red swan. But let’s look at the situation more deeply.

So, in the world, inflation is at a very high level—so high that it can’t be brought down with standard tools like interest rates. Because the debt burden is simply too enormous.

It’s like a bridge in the wind: when it starts swinging uncontrollably, trucks are driven onto the bridge to reduce that oscillation and prevent a crash (an analogy to interest rates—raising them or lowering them to fight inflation, which doesn’t help anymore).
Or you let the bridge collapse so it can be rebuilt, using a different technology or more resilient structures (an analogy to new technology in the economy, taking into account new rounds of development such as blockchain, DEXs, neo-banks, and so on).

At the moment, we have a situation like this. The global economy is cracking at the seams. Raising interest rates will no longer produce results in the long term. So it’s more logical to allow this system a managed collapse, the main damage of which will be borne by ordinary people. Because the elites have a task: will they lose their money, or will the crowd. I think the priority of that choice is obvious.

But to spring this trap shut and really write off the debt and everything that has accumulated over a long time, you need managed chaos in the markets and euphoria. So that the crowd’s vigilance is dulled, and it seems like we’re finally getting out of the zone of turbulence into a stable, developing economy—where, in reality, the main trap will be for 95-99% of participants.

So the logic is, at its simplest, this: let the economy live through this period of managed collapse. And with the preservation of the key factors of the logic of control. That means the collapse will be destructive for many, but the unit of measurement and value will remain—namely the dollar.