Col Doug Macgregor: We're Being Held Hostage by China

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Ken Griffin at Davos warned we may be entering “1920s territory,” not because of reckless private markets, but because government spending is overextended and traditional crisis tools (QE, money printing) no longer work since banks, governments, and private equity are all compromised. AI is being quietly treated as the only possible escape valve via productivity gains.

Disagreement at Davos: Some leaders (Lagarde, Frink, others) argue AI will save the system. Griffin’s deeper warning—largely missed—is that if AI fails to deliver massive productivity, the system breaks.

Counterpoint from the panel: Private equity is not innocent—it has been propped up by QE behind the scenes, and elites across finance, government, and banking are collectively exposed. No one will admit this publicly.

Historical parallel: Just like 1929, officials publicly insist “prosperity is unbroken” while privately knowing the system is unstable. The fear isn’t just collapse—it’s political and legal reckoning afterward.

Dollar trouble: Over the past few days, the U.S. dollar has fallen to lows not seen since 2022, contradicting official claims of strength. The trajectory resembles Japan-style decline, not sudden collapse but steady erosion.

Gold and silver surge: Central banks (China, Russia, India, Poland, others) continue aggressively buying gold, signaling declining trust in the dollar. Gold is increasingly treated as the de facto reserve asset. Silver is tightening due to its dual role as money + critical industrial/defense input.

Trust breakdown: The core issue is loss of trust in the U.S.—economic, political, and strategic. Countries are signing more deals with BRICS members, prioritizing stability over alignment with Washington.

Strategic failure: The U.S. focused on military dominance while neglecting supply chains, rare earth refining, nuclear energy, and industrial capacity, leaving it dependent on China in critical sectors—especially for AI and advanced manufacturing.

Bottom line: The system hasn’t “broken” yet, but the foundations are visibly cracking. What we’re seeing now isn’t the crash—it’s the funeral procession picking up speed.