2025 will host the beginning of the end of an era of “casino capitalism,” characterized by accounting gimmicks, insane valuations, and massive stock buybacks. Retail buyers continue piling in at the top of the market, as sophisticated investors take profits and exit this bubble.

U.S. equity markets are no longer rational funding mechanisms; they have become high-risk momentum chasing casino gambling. When the crash happens, the fake news sound bite will be: Pump, Dump, and Blame Trump.

1. Market Correction: A substantial correction, 50% or more is coming in the U.S. stock markets when big tech’s AI bubble explodes.
2. Recession Ahead: Despite Federal Reserve policies, as inflation and interest rates continue higher the U.S. economy will head into a deeper recession.
3. World Leader Turnover: Many unpopular world leaders will exit; USA’s Biden, France's Macron, Canada's Trudeau, Germany's Scholz, Australia’s Albanese, and Ukraine's Zelenskyy will all be removed from their “leadership” roles.
4. BRICS Take on U.S. Dollar: A global plan for de-dollarization and multipolarity will gain momentum. Lead by the BRICS Plus nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates—they are set to launch a currency exchangeable for basket of commodities, like the “Gold Standard.”
5. Media Bias Upheaval: After losing more multi-million-dollar lawsuits and what little credibility the far-left mainstream media had left, many outlets will be forced to consolidate or close. Numerous programs will be canceled, and thousands of employees better “learn to code.”

Milton Friedman, a winner of the Nobel Memorial Prize in Economic Sciences, famously asserted that “Inflation is created in Washington, and only Government creates inflation.”

The United States has nearly $300 trillion in debt, including Social Security and Medicare liabilities. Both programs have been significantly drained and are now essentially insolvent. Nonetheless, the U.S. government has a legally binding obligation to repay the money it has plundered from these taxpayer-funded programs.

The CEO suites have become flush with payouts, creating many new billionaires. The employees, retail shareholders, and taxpayers will ultimately be left picking up the tab when these stock buyback earnings cannibalizations explode.

In 2024, Janet Yellen's Treasury paid over $1.1 trillion in interest alone on the massive debt we now own. Yellen unlawfully shifted a large portion of treasury issuance to shorter maturities, thereby minimizing the average interest rate paid to an average of 3.32% on our $36 trillion-plus debt created by Yellen’s policies.

Since September, the Federal Reserve has cut interest rates from 5.5% to 4.5%, yet the 10-year Treasury note yields have risen from 3.60% to 4.65%. That’s over 100 basis points!

In history, there has never been this type of divergence It’s 200 basis points, signalling the Federal Reserve policies have broken the bond market. In other words, the Fed cut interest rates yet the bond markets raised rates.

Why higher interest rates matter for your family

The debt situation poses significant challenges for small businesses and consumers, particularly those looking for mortgages, as they will face increased borrowing costs. The 10-year note is used in setting the interest rates on small business loans and mortgage products. Given the enormous volume of U.S. debt expected to be issued in 2025, interest rates will remain high. These are concerning inflationary warning signs that retail stock investors are ignoring at their peril.

For decades, Federal Reserve leaders such as Ben Bernanke, Jerome Powell, and Janet Yellen assured us that: “inflation is transitory” and “the emergency stimulus (money printing) are only temporary.”

Additionally, Joe Biden promised us that his Inflation Reduction Act and the trillions spent on other unlawful and fiscally reckless programs would not be inflationary. NONE of the above claims were true, and the inflationary policies and excessive debt will spark the coming crisis, which will happen on Trump’s watch.

The inflationary damage to the U.S. economy caused by four years of the Biden administration’s policies was substantial. Yellen's Treasury leadership role under Biden and her Fed policies increased the deficit by at least $15 trillion. As the cost of living continues to spiral out of control, nearly 50% of Americans live paycheck to paycheck while Yellen has received over $8 million in “speaking fees.”

While Milton Friedman remains widely regarded as one of the greatest economists of all time, in 2024, many labelled Janet Yellen as the worst economist in history. As a result, she is being put out to pasture. Yellen will continue earning millions through speaking engagements and book deals. To many, this appears to be a form of legalized kickback schemes.

It’s not all doom and gloom for 2025. While we need to remain cautious, there are exciting opportunities on the horizon that will help us create generational wealth during times of crisis. We must be ready to seize these moments as they arise.

Nevertheless, proceed with caution in 2025.

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Mitch Feierstein knows the financial industry inside out. For the past four decades he consistently created opportunity and value where others have failed to look. He is a successful investor and CEO of the Glacier Environmental Fund Limited. Prior to Glacier, he was Senior Portfolio Manager of the Cheyne Carbon Fund, part of one of the largest and best-respected hedge-fund groups operating in Europe. He has acted as a consultant for a number of governments in their disaster and contingency planning. He is the author of Planet Ponzi, the only insider's account of the credit crisis detailing; How we got into the mess, what happens next, and what you need to do to protect yourself. He divides his time between London and New York.