Alex Krainer: Bond Market Collapse & the New Chinese Economic Order

Geopolitical events like the Afghanistan withdrawal and military operations are disproportionately driving the crash in Western bond markets, with British, European, and Japanese bonds in worse shape than U.S. Treasuries.

Many Western sovereign bonds will follow the trajectory of German Imperial Bonds, breaking support and declining rapidly to near zero.

Western financial institutions are heavily leveraged and face bankruptcy as cash flows from colonial-style assets dry up, turning loans into impaired assets. Central banks print money to backstop these bad debts, diluting currency purchasing power and robbing the population through inflation that far outstrips nominal bond yields.

The U.S. uses military coercion to force nations like Venezuela into the dollar system, using their resources as collateral to create new loan assets for Wall Street banks.

European, British, and Japanese financial systems lack this coercive power and face a future resembling the Weimar Republic collapse.

The free market system forces a race to the bottom, slashing pensions, wages, and public infrastructure to maximize returns for the investor class. The national system of political economy, applied by China, Russia, and historically the U.S., reinvests domestic wealth into infrastructure and public services, rapidly lifting populations out of poverty. Western powers historically seek to destroy nations applying the national system because the contrast exposes the failures of the free market model.

The historical American system, based on tariffs, subsidies, infrastructure, and a national bank, rapidly developed U.S. wealth and was copied by other nations before being replaced by British free-market ideology.

19th-century liberal economists actually advocated taxing rent-seekers to fund infrastructure and education, a concept now falsely denounced as socialism due to historical revisionism.

Academic and institutional infiltration by British imperial interests replaced the national system with free trade, leading to wealth extraction and misery.

The financialized system's trajectory leads to a dystopian future where elites promote insect diets, 15-minute cities, and euthanasia for those deemed net consumers of capital. The national system of governance offers a bright future of peace, prosperity, and creativity, allowing people to pursue passions and build high civilization. Choosing between these systems is the most critical juncture for humanity, and elites will kill to maintain the financialized model.

Losing the Ukraine proxy war will dry up expected cash flows, forcing European central banks to print liquidity and triggering hyperinflation. The EU and NATO will collapse, leading to severe political struggles, terrorism, and assassinations as sovereignist movements clash with establishment forces.

Historical precedents like Operation Gladio and the assassination of Alfred Herrhausen show that European elites have used violence to prevent economic partnerships with Russia.

Halford Mackinder's geopolitical strategy was deeply racist, assuming China could not develop independently and needed Japanese guidance, leading to flawed Western planning. Western assumptions about Chinese inferiority and the impossibility of a Russia-China partnership are proving completely wrong, causing the Western geopolitical house of cards to implode. The collapse of these flawed plans creates space for people to rebuild society from the bottom up, provided they arm themselves with historical and economic knowledge.

Western elites published academic papers in the 1990s claiming China couldn't innovate to convince themselves of their indispensability and justify continued dominance.

Western geopolitical ideology operates on a civilizing mission or teacher-student dynamic that requires perpetual subjugation of other nations to maintain dominance.

China's rise and the integration of Eurasian powers are dismantling Western assumptions about innovation and dominance, exposing the failure of the financialized model.