Fiscal Dominance, AI & Crashing Europe With Energy | This Week In Macro (Part 2) | #BitcoinHardTalk Episode 98
Sep 23, 2025TL/DR: Not Got Time To Watch The Full Video? Watch the TL/DR AI Summary Here Or Click On Image Below 👇
I am deep into the fiscal dominance cycle, where debt management dictates monetary policy. The Federal Reserve cut rates by 25 basis points solely to allow the administration to roll over short-term debt. This move was justified by necessary manipulation of unemployment data, including the largest negative revision of jobs in history. This pumps assets—stocks, gold ($3,700 passed), Bitcoin—to all-time highs, fueled by a weakening dollar, accelerating the K-shaped economy.
Meanwhile, I argued that the US Proof-of-Weapons (POW) Network is actively crashing Europe using energy. Under the pretense of sanctioning Moscow, this is a sanction on Brussels, not Russia, designed to coerce Europe into reorienting $750 billion of energy consumption towards expensive US hydrocarbons by 2028. This structurally weakens Europe and maintains dependence. Key lenders like Japan ($1.2 trillion in Treasuries) and the UK are signaling an exit, accelerating the need for short-term fiscal dominance.
The solution? Protect yourself by exiting this asset-stripping, debt-based system with sovereign Bitcoin.
Hey-Hey, Bitcoin Wealth Builders!
Welcome back to Part Two: This Week in Macroeconomics. I am covering everything that happened this week to lay the foundation for understanding who killed Charlie Kirk in Part Three. I want you to understand that we are deep into the cycle of fiscal dominance, meaning monetary policy has become subordinate to government spending and debt management. This system relies on Artificial Intelligence and Energy as the only counter-inflationary forces.
I am also detailing how the POW Network is currently crashing Europe using energy.
The Fed Cut and the Fiscal Dominance Rule
The Federal Reserve, a key node of the Proof-of-Weapons Network, cut rates by 25 basis points. I assert this was a predictable, token gesture. In an environment where the government is bankrupt, there is no monetary policy justification for cutting rates. The only justification is fiscal: the Trump administration and the financial industrial complex need to roll over short-term debt.
This is the very essence of fiscal dominance: the government spends more, rolls over more debt, and monetary policy becomes less relevant. This strategy is purely about pumping assets and executing crony capitalism deals while the government foots the bill. President Trump was installed, not elected, by the Proof-of-Weapons Network to execute this tariff policy and strategy.
The network then uses Jerome Powell as a scapegoat; whatever the consequences of fueling the debt crisis, Trump can blame the Fed. This policy is disastrous for anyone not in the top 10% or top 1% of asset owners.
The Data Manipulation to Justify the Unjustifiable
How did the Fed justify cutting rates when inflation is systemically higher than their 2% target? They used the second part of their mandate: unemployment. If unemployment is getting worse, they can justify pumping the market so companies can borrow more and hire more.
As if by magic, right before the rate cut, there was a sudden, massive correction in data due to what they called fraudulent reporting of unemployment data. This resulted in the largest negative revision of jobs in history. Suddenly, the data showed over-reporting of almost 1 million jobs between March 2024 and March 2025. I noted that this happened during both the Biden and Trump administrations, proving this is a POW Network operation, not a partisan political issue. This manipulated short-term data gave them exactly the justification needed to cut rates despite inflation.
Asset Price Inflation and the K-Shaped Economy
I stated that this strategy means running the economy as hot as possible, which is fueling asset price inflation. This week confirmed it:
- Stocks reached new all-time highs.
- Real estate reached new all-time highs.
- Bitcoin is close to its all-time high.
- Gold pumped like crazy, passing $3,700 for the first time in history.
In a normally functioning market, you expect negative correlation between these assets, but they are all going up because the dollar is getting weaker. Fiscal dominance turns the entire economy against those who don't own assets, pushing the K-shaped economy where the rich get richer and the poor get poorer.
The only forces that can combat this inflationary cycle are Artificial Intelligence and Energy. However, AI accelerates job losses, worsening unemployment, which then circles back to justifying further market pumping.
Allies Are Signaling Their Exit from the Debt Ponzi
The structural bid on the dollar is being challenged as foreign countries begin exiting US debt.
Japan's Shift: The Bank of Japan is now refocusing on its own region rather than simply being a tool for pumping US stocks. It is hiking interest rates and deciding to start selling off its assets. Japan is the largest foreign lender and purchaser of US Treasuries, holding $1.2 trillion. Japan selling US Treasuries would weaken the dollar further and accelerate the affordability crisis for long-term US debt, leading to the reverse dollar milkshake theory.
Europe's Distress: France received a credit rating downgrade from Fitch, causing a massive spike in French bond yields. The UK, the second largest lender to the US government, is also seeing its bond yields spike. I argued that the UK is being vassalized and used as a piggy bank to buy US weapons and prop up the dollar through lending to the US government. This distress signals a widespread challenge to US financial stability.
The Crashing and Vassalization of Europe
I stressed that the US POW network is actively crashing Europe using energy to enforce compliance.
The Financial Times, a mouthpiece for the network, reported that the US is demanding Europe halt Russian oil and gas purchases, framed as a "moral and strategic imperative" to starve Moscow's war machine. I refuted this, arguing that this is a sanction on Brussels, not Moscow.
The underlying economic directive is to coerce Europe into reorienting $750 billion of energy consumption toward expensive US hydrocarbons by 2028 under the EU-US trade deal. This uses sanctions as leverage against Brussels to enforce compliance with US trade targets. Europe is being forced to abandon cheaper Russian energy, absorb higher costs from US imports, and scale back its climate sovereignty.
The result is that Europe is being structurally weakened, de-industrialized, and locked into dependency on US supply chains, with soaring energy prices causing people in England to choose between eating and heating. Trump’s entire energy policy, I stated, is a mechanism to discipline Europe.
The Financialization of US Real Estate
The Proof-of-Weapons Network is executing an asset stripping exercise within the US itself. Node operators like Bill Ackman are trying to merge Fannie Mae and Freddie Mac. These organizations are the backbone of the US real estate market.
The goal of merging them is to shift their business model into mortgage trading. This creates financial weapons of mass destruction—such as mortgage-backed securities, credit default swaps, and derivatives—on the US real estate market. This subjects the entire US real estate sector to full vassalization by the Proof-of-Weapons Network. This exercise turns something essential, like mortgages for living, into a financial product that can be sliced, diced, tokenized, and turned into a "shitcoin".
The US economy, being 70% service-based, with the largest sector being financial services, has no reality anymore; it is just pumping the bags of the richest.
My final suggestion is to research the planned merger of Fannie Mae and Freddie Mac and track how quickly mortgage trading becomes their core business model, as this will confirm the weaponization of US real estate.
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Fiscal Dominance, AI & Crashing Europe With Energy | This Week In Macro
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Disclaimer
This blog was generated with the assistance of AI and is based on the views, commentary, and live analysis delivered by Simon Dixon in Bitcoin HardTalk Episode 98 (Part 2: This Week in Macro). The analysis provided herein distills complex global developments—including the economic strategies of fiscal dominance, the alleged manipulation of unemployment data, and geopolitical theories regarding the coercive enforcement of US energy policies on Europe—into an accessible format for educational and informational purposes only.
I assert that the concepts discussed, such as fiscal dominance, the Proof-of-Weapons Network's role in manipulating asset prices and unemployment data, and the interpretation of US energy policy as a sanction on Brussels rather than Moscow, are analytical frameworks derived from following monetary flows, historical analysis, and my professional perspective.
This content does not constitute financial, legal, tax, investment, or political advice. Bitcoin and other digital assets are volatile, high-risk instruments. Readers must perform their own due diligence and consult qualified professionals before making financial decisions. By reading this blog, you acknowledge sole responsibility for any interpretation or action you take based on this content.
For the complete and unfiltered version of my analysis, I encourage readers to watch the full BitcoinHardTalk Episode 98 livestream.
