The Mother of All Financial Bubbles: A Burst of Unimaginable Destruction

Editor's Note: The following is a guest post by Chris Martenson with PeakProsperity.com.

At PeakProsperity.com, we pride ourselves on providing fact-based context to breaking important events.

Within 72 hours of the Japan tsunami in 2011, we had analyzed the situation and concluded with high probability that three core meltdowns had occurred at the Fukushima nuclear plant. While it took years for officials to finally admit to the full extent of the crisis, history has validated our initial analysis.

How did we get it right? By using a science-based approach grounded in observation, deduction and a healthy skepticism of what the "experts" in charge claimed. We also went to great lengths to educate our readers about the science in play, explaining in detail how radioactivity and contamination differ, the health risks from such a nuclear accident, and what concerned folks could do to remain as safe as possible.

When California's authorities suddenly reversed course and scrambled to evacuate nearly 200,000 residents living downstream of the Oroville dam, within an hour, we had released an analysis of the situation, explaining the critical differences among the primary spillway, the main dam, and the auxiliary spillway.

Where mainstream media outlets were consumed by covering the Grammy’s, we were able to tweet and blog relevant details to the worried people hungry for information about the dam's integrity, keeping them both grounded and informed:

By 10:00pm that same Sunday night of February 12th, we had shared a series of updates with schematics, images and conclusions that was more complete, accurate and hysteria-free than any other news source we could find at the time.

By the next morning, we had located and interviewed one of America's top dam experts, who provided an absolutely spectacular assessment of the situation at Oroville. That podcast has been listened to by nearly 50,000 people at this point, including residents of Oroville who have used its insights to determine whether or not to return home at this time.

And on top of all this, our own community began filling in the blanks with their expertise. One community member, an emergency worker deployed to the dam earlier this week, has been providing us with valuable insider information that state officials have resisted making public.

The reason I'm relating all of this now is because of the instructive lessons involved. It’s worth noting that communications from officials in Oroville transitioned from a steady, repeated stream of “Everything is fine. There's nothing to worry about” to suddenly “Run for your lives!” within an hour.

Of course, the 188,000 people living downstream from the dam were caught off guard by the mandatory evacuation order. Many left with none of their possessions, only to get hopelessly caught on clogged roads. It was a time of panic and disorder, with no one seemingly in control.

The main lesson from Oroville -- or Fukushima, or Katrina -- is that governments do a poor job of relating accurate information to their citizens when big threats are involved. Part of that is likely due to a desire to avoid stoking fear. Part probably due to politics and bureaucracy. And part probably due to plain old incompetence.

Regardless of the cause, it means that the public -- even the vigilant ones -- suffer information deficits when it matters most. Simply put, the authorities do not share all the facts necessary for making informed decisions.

Which is why our longstanding advice has been a straightforward call to 'trust yourself' when assessing crisis risk. In most cases, good old-fashioned common sense and a little sleuthing will get you far closer to the truth, and faster, than 99% of your peers who are relying on being told what’s happening by those in charge.

In most cases, the information you need to assess the truth will be right there, hiding in plain sight but always obvious in retrospect. This means it’s also available to you in real-time, providing you're willing to trust your own eyes and you know where to look.

Which brings us to one of the truly great risks we're facing today. One with much more destructive potential than a single failed dam but, like Oroville, one the authorities are desperate to keep us in the dark about.

The Mother Of All Financial Bubbles

We are now living through the mother of all financial bubbles. We've been living with it so long now that we have to take three giant steps backwards to even detect its broad outlines.

As a reminder, a bubble exists when asset prices rise beyond what incomes can sustain. Florida swampland in the 1920’s, tech stocks in the late 1990s, or Toronto real estate today -- all are fine examples of this.

The US government and the private banking cartel known as the Federal Reserve, in cahoots with a very compliant and complicit mainstream media, are doing everything in their vast and considerable power to convince us that we are living in an golden era of risk-free prosperity. And that tomorrow will be even better.

Now, regular readers of PeakProsperity.com's reports will know there's a mountain of evidence contracting this. But it's critical to understand that this is the same public perception management style as we've recently seen at Oroville: Deny, deny, deny... and then finally admit the obvious.

So let’s take those three giant steps backwards and see if we can spot the flaw in the ‘everything is awesome!’ meme that the Fed et al are trying to paint for everyone by flooding the “markets” with so much thin-air liquidity (between $150-$200 billion a month) that nobody has any clue what anything is truly worth anymore.

Giant Step Backwards #1: Infinite growth is impossible.

This is such an easy concept that I'm continually surprised at how poorly appreciated it is and how much resistance it receives when raised. But it works like this: the earth is a sphere and therefore has a defined surface area and a defined amount of resources available for use.

The availability of these resources ranges across a spectrum from dense/concentrated on one end to dilute/useless at the other. Humans have already extracted and consumed most of the easily obtainable stuff. Now it gets harder.

Regardless of the economics of these resources, they are finite. And as our economic requires resources to function, if we want our economy to grow from here, that means consuming more resources at a faster rate then we have been. If resources are finite, then growth will one day prove finite, too.

This should be utterly, blindingly obvious to everyone. But it’s not, apparently. The Federal Reserve and the central banks in other nations are unified in their call for more economic growth, always and forever. That’s plan A. There is no plan B.

Giant step backwards #2: You can’t print your way to prosperity.

History is replete with the failed attempts of nations to print their way to prosperity. The pursuit operates on the same principle as alchemy: trying to get something for nothing. It has invariably and always ended the same way. In tears.

At first it, issuing more currency feels good because those closest to the money printing get stinking rich while doing practically nothing. As that trickles down, everybody initially feel smart and wealthier. Well, not everybody; but those running the system sure do.

After a while, though, all that feel-good activity is revealed as a fraud. It turns out prosperity wasn't printed, instead it was redistributed. From one party’s pocket into another. And in most cases, from poorer pockets into those of the already-privileged.

The same is happening today with the "thin air" money printing being conducted by the world's central banks. We are now living with one of the most extreme wealth gaps in US history, with the top 1% (really, the top 0.1%) owning a greater percentage of the nation's wealth than they ever have.

But it's even more nefarious than that, because the Fed is not simply stealing from today's public; it is also stealing the prosperity of future generations. When the party being stolen from hasn't been born yet, it can't fight back.

In short, you cannot print your way to prosperity. Yet somehow we've forgotten that. And we're dooming ourselves (and our children and grandchildren) to becoming serfs in the process.

Giant step backwards #3: You can’t grow your debts faster than your income forever.

This, too, should be completely obvious. You know perfectly well it holds true for your personal life or your business, if you have one. And it’s equally true for a nation, which is simply an aggregation of individuals and businesses. But somehow this simple truth has been either forgotten or deliberately ignored by today's economists and politicians.

Our grand experiment in debt-based fiat currency -- unbacked by anything tangible, like gold -- began on August 15th, 1971 when Nixon unilaterally broke the Bretton Woods agreement and forced the entire world off of the gold standard. Not that the world minded much, because this then meant that politicians and monetary hacks everywhere could ignore centuries of economic lessons and begin making exorbitant promises by printing currency like mad.

The giant step towards monetary (and debt) expansion this represented is clear to anybody who can read a chart.

Here’s the total credit market debt in the US. It has exploded higher at a near-perfect exponential rate since that fateful day in 1971:

But what we really need to do is compare debt to income. Remember, you're not supposed to grow the former at faster rate than the latter. So let’s add (nominal) GDP to our chart and see what comes up:

As you can see, those lines began diverging a long time ago (aha! Right around 1971. Imagine that.). They've been diverging at an increasing pace for pretty much the entire adult lives of everybody in power. At this point, our leaders just assume “This is how the world works.”

“Reagan proved that deficits don’t matter”

~ Vice President Dick Cheney

The little wiggle in the exponential curve there, during 2008-2009, was the wiggle that almost destroyed the world. Our entire system of credit and money came very close to full-scale collapse, simply because it didn't grow for a few brief years. Makes you shudder to think what would have happened had it acutally contracted...

But back to the main point. If we compare the beginning of this wanton debt-binge in 1970 with the state of things today:

We see that debt has shot up by a factor of 40 while income has only increased by a factor of 17. We have indeed grown our debts wildly faster than our income over the past 45 years

And, it should be noted, a lot of that GDP ‘growth’ is the byproduct of borrowing and spending money we don’t have on things we don’t need. Said differently: the debts will remain during any serious future economic downturn but the GDP that is fraudulently based on excessive rates of borrowing will vaporize as if it never existed in the first place.

That, my friends, right there is the very definition of unsustainable.

If something cannot go on, it won’t.

But the Federal Reserve, under the leadership of a pure academic like Janet Yellen, cannot conceive of any approach other than perpetuation the same system that has been in place while she's built her career.

Conclusion

The Fed is desperately seeking to keep the status quo in place, praying that somehow things turn out OK, and clearly scared to death behind the scenes. But, just like the officials at Oroville, when the cameras are on her, Yellen smiles and tells us that all is well.

The Fed has printed as much money as it has dared for the time being. It has since handed the baton over the ECB, and the Bank of Japan, who have stepped in to keep the wheels of the world's debt production well-greased.

Around and around the baton gets passed. And we're told by our government and media that this is all in our best interests. However, the only thing these central banks are truly doing is stealing from savers and the elderly today, and pretty much everyone tomorrow.

What have they done with the trillions in "thin air" currency they have printed up? They handed them to the big banks, to speculators and the already wealthy. Which should come as little surprise. These are the people they count on for their high-status jobs, as well as the big payouts awaiting them when they return to the private sector.

In the meantime, they’ve blown the Mother Of All Financial Bubbles.

This is primarily a bubble in debt (i.e., the bond market). But in its making, new bubbles in real estate, stocks and a whole slew of other asset classes were created.

When these bubbles burst, and they must, it will be a massively destructive event. There will literally be nowhere to hide from the repercussions.

You simply cannot count on anyone in power giving you anything like timely warning or useful advice in advance. You need to find accurate, trustworthy indicators on your own, and then decide how you're going to position yourself, your loved ones, and your wealth accordingly.

In Part 2: How Bad Will It Get? we detail the tremendous scale of the losses that will result when this Mother Of All Financial Bubbles bursts. It will be a traumatizing time for society, and many, many people will see their wealth vaporize.

The key objective at this time is to position yourself for physical and financial safety. For those who do will be in a position to prosper greatly, as well as offer much-needed support to others, when the coming reset arrives.

Silent genocide exposed: Are christians being wiped out in 2025?

Aldara Zarraoa / Contributor | Getty Images

Is a Christian Genocide unfolding overseas?

Recent reports suggest an alarming escalation in violence against Christians, raising questions about whether these acts constitute genocide under international law. Recently, Glenn hosted former U.S. Army Special Forces Sniper Tim Kennedy, who discussed a predictive model that forecasts a surge in global Christian persecution for the summer of 2025.

From Africa to Asia and the Middle East, extreme actions—some described as genocidal—have intensified over the past year. Over 380 million Christians worldwide face high levels of persecution, a number that continues to climb. With rising international concern, the United Nations and human rights groups are urging protective measures by the global community. Is a Christian genocide being waged in the far corners of the globe? Where are they taking place, and what is being done?

India: Hindu Extremist Violence Escalates

Yawar Nazir / Contributor | Getty Images

In India, attacks on Christians have surged as Hindu extremist groups gain influence within the country. In February 2025, Hindu nationalist leader Aadesh Soni organized a 50,000-person rally in Chhattisgarh, where he called for the rape and murder of all Christians in nearby villages and demanded the execution of Christian leaders to erase Christianity. Other incidents include forced conversions, such as a June 2024 attack in Chhattisgarh, where a Hindu mob gave Christian families a 10-day ultimatum to convert to Hinduism. In December 2024, a Christian man in Uttar Pradesh was attacked, forcibly converted, and paraded while the mob chanted "Death to Jesus."

The United States Commission on International Religious Freedom (USCIRF) recommends designating India a "Country of Particular Concern" and imposing targeted sanctions on those perpetrating these attacks. The international community is increasingly alarmed by the rising tide of religious violence in India.

Syria: Sectarian Violence Post-Regime Change

LOUAI BESHARA / Contributor | Getty Images

Following the collapse of the Assad regime in December 2024, Syria has seen a wave of sectarian violence targeting religious minorities, including Christians, with over 1,000 killed in early 2025. It remains unclear whether Christians are deliberately targeted or caught in broader conflicts, but many fear persecution by the new regime or extremist groups. Hayat Tahrir al-Sham (HTS), a dominant rebel group and known al-Qaeda splinter group now in power, is known for anti-Christian sentiments, heightening fears of increased persecution.

Christians, especially converts from Islam, face severe risks in the unstable post-regime environment. The international community is calling for humanitarian aid and protection for Syria’s vulnerable minority communities.

Democratic Republic of Congo: A "Silent Genocide"

Hugh Kinsella Cunningham / Stringer | Getty Images

In February 2025, the Allied Democratic Forces (ADF), an ISIS-affiliated group, beheaded 70 Christians—men, women, and children—in a Protestant church in North Kivu, Democratic Republic of Congo, after tying their hands. This horrific massacre, described as a "silent genocide" reminiscent of the 1994 Rwandan genocide, has shocked the global community.

Since 1996, the ADF and other militias have killed over six million people, with Christians frequently targeted. A Christmas 2024 attack killed 46, further decimating churches in the region. With violence escalating, humanitarian organizations are urging immediate international intervention to address the crisis.

POLL: Starbase exposed: Musk’s vision or corporate takeover?

MIGUEL J. RODRIGUEZ CARRILLO / Contributor | Getty Images

Is Starbase the future of innovation or a step too far?

Elon Musk’s ambitious Starbase project in South Texas is reshaping Boca Chica into a cutting-edge hub for SpaceX’s Starship program, promising thousands of jobs and a leap toward Mars colonization. Supporters see Musk as a visionary, driving economic growth and innovation in a historically underserved region. However, local critics, including Brownsville residents and activists, argue that SpaceX’s presence raises rents, restricts beach access, and threatens environmental harm, with Starbase’s potential incorporation as a city sparking fears of unchecked corporate control. As pro-Musk advocates clash with anti-Musk skeptics, will Starbase unite the community or deepen the divide?

Let us know what you think in the poll below:

Is Starbase’s development a big win for South Texas?  

Should Starbase become its own city?  

Is Elon Musk’s vision more of a benefit than a burden for the region?

Shocking truth behind Trump-Zelenskyy mineral deal unveiled

Chip Somodevilla / Staff | Getty Images

President Donald Trump and Ukrainian President Volodymyr Zelenskyy have finalized a landmark agreement that will shape the future of U.S.-Ukraine relations. The agreement focuses on mineral access and war recovery.

After a tense March meeting, Trump and Zelenskyy signed a deal on Wednesday, April 30, 2025, granting the U.S. preferential mineral rights in Ukraine in exchange for continued military support. Glenn analyzed an earlier version of the agreement in March, when Zelenskyy rejected it, highlighting its potential benefits for America, Ukraine, and Europe. Glenn praised the deal’s strategic alignment with U.S. interests, including reducing reliance on China for critical minerals and fostering regional peace.

However, the agreement signed this week differs from the March proposal Glenn praised. Negotiations led to significant revisions, reflecting compromises on both sides. What changes were made? What did each leader seek, and what did they achieve? How will this deal impact the future of U.S.-Ukraine relations and global geopolitics? Below, we break down the key aspects of the agreement.

What did Trump want?

Bloomberg / Contributor | Getty Images

Trump aimed to curb what many perceive as Ukraine’s overreliance on U.S. aid while securing strategic advantages for America. His primary goals included obtaining reimbursement for the billions in military aid provided to Ukraine, gaining exclusive access to Ukraine’s valuable minerals (such as titanium, uranium, and lithium), and reducing Western dependence on China for critical resources. These minerals are essential for aerospace, energy, and technology sectors, and Trump saw their acquisition as a way to bolster U.S. national security and economic competitiveness. Additionally, he sought to advance peace talks to end the Russia-Ukraine war, positioning the U.S. as a key mediator.

Ultimately, Trump secured preferential—but not exclusive—rights to extract Ukraine’s minerals through the United States-Ukraine Reconstruction Investment Fund, as outlined in the agreement. The U.S. will not receive reimbursement for past aid, but future military contributions will count toward the joint fund, designed to support Ukraine’s post-war recovery. Zelenskyy’s commitment to peace negotiations under U.S. leadership aligns with Trump’s goal of resolving the conflict, giving him leverage in discussions with Russia.

These outcomes partially meet Trump’s objectives. The preferential mineral rights strengthen U.S. access to critical resources, but the lack of exclusivity and reimbursement limits the deal’s financial benefits. The peace commitment, however, positions Trump as a central figure in shaping the war’s resolution, potentially enhancing his diplomatic influence.

What did Zelenskyy want?

Global Images Ukraine / Contributor | Getty Images

Zelenskyy sought to sustain U.S. military and economic support without the burden of repaying past aid, which has been critical for Ukraine’s defense against Russia. He also prioritized reconstruction funds to rebuild Ukraine’s war-torn economy and infrastructure. Security guarantees from the U.S. to deter future Russian aggression were a key demand, though controversial, as they risked entangling America in long-term commitments. Additionally, Zelenskyy aimed to retain control over Ukraine’s mineral wealth to safeguard national sovereignty and align with the country’s European Union membership aspirations.

The final deal delivered several of Zelenskyy’s priorities. The reconstruction fund, supported by future U.S. aid, provides a financial lifeline for Ukraine’s recovery without requiring repayment of past assistance. Ukraine retained ownership of its subsoil and decision-making authority over mineral extraction, granting only preferential access to the U.S. However, Zelenskyy conceded on security guarantees, a significant compromise, and agreed to pursue peace talks under Trump’s leadership, which may involve territorial or political concessions to Russia.

Zelenskyy’s outcomes reflect a delicate balance. The reconstruction fund and retained mineral control bolster Ukraine’s economic and sovereign interests, but the absence of security guarantees and pressure to negotiate peace could strain domestic support and challenge Ukraine’s long-term stability.

What does this mean for the future?

Handout / Handout | Getty Images

While Trump didn’t secure all his demands, the deal advances several of his broader strategic goals. By gaining access to Ukraine’s mineral riches, the U.S. undermines China’s dominance over critical elements like lithium and graphite, essential for technology and energy industries. This shift reduces American and European dependence on Chinese supply chains, strengthening Western industrial and tech sectors. Most significantly, the agreement marks a pivotal step toward peace in Europe. Ending the Russia-Ukraine war, which has claimed thousands of lives, is a top priority for Trump, and Zelenskyy’s commitment to U.S.-led peace talks enhances Trump’s leverage in negotiations with Russia. Notably, the deal avoids binding U.S. commitments to Ukraine’s long-term defense, preserving flexibility for future administrations.

The deal’s broader implications align with the vision Glenn outlined in March, when he praised its potential to benefit America, Ukraine, and Europe by securing resources and creating peace. While the final agreement differs from Glenn's hopes, it still achieves key goals he outlined.

Did Trump's '51st state' jab just cost Canada its independence?

Bloomberg / Contributor | Getty Images

Did Canadians just vote in their doom?

On April 28, 2025, Canada held its federal election, and what began as a promising conservative revival ended in a Liberal Party regroup, fueled by an anti-Trump narrative. This outcome is troubling for Canada, as Glenn revealed when he exposed the globalist tendencies of the new Prime Minister, Mark Carney. On a recent episode of his podcast, Glenn hosted former UK Prime Minister Liz Truss, who provided insight into Carney’s history. She revealed that, as governor of the Bank of England, Carney contributed to the 2022 pension crisis through policies that triggered excessive money printing, leading to rampant inflation.

Carney’s election and the Liberal Party’s fourth consecutive victory spell trouble for a Canada already straining under globalist policies. Many believed Canadians were fed up with the progressive agenda when former Prime Minister Justin Trudeau resigned amid plummeting public approval. Pierre Poilievre, the Conservative Party leader, started 2025 with a 25-point lead over his Liberal rivals, fueling optimism about his inevitable victory.

So, what went wrong? How did Poilievre go from predicted Prime Minister to losing his own parliamentary seat? And what details of this election could cost Canada dearly?

A Costly Election

Mark Carney (left) and Pierre Poilievre (right)

GEOFF ROBINSPETER POWER / Contributor | Getty Images

The election defied the expectations of many analysts who anticipated a Conservative win earlier this year.

For Americans unfamiliar with parliamentary systems, here’s a brief overview of Canada’s federal election process. Unlike U.S. presidential elections, Canadians do not directly vote for their Prime Minister. Instead, they vote for a political party. Each Canadian resides in a "riding," similar to a U.S. congressional district, and during the election, each riding elects a Member of Parliament (MP). The party that secures the majority of MPs forms the government and appoints its leader as Prime Minister.

At the time of writing, the Liberal Party has secured 169 of the 172 seats needed for a majority, all but ensuring their victory. In contrast, the Conservative Party holds 144 seats, indicating that the Liberal Party will win by a solid margin, which will make passing legislation easier. This outcome is a far cry from the landslide Conservative victory many had anticipated.

Poilievre's Downfall

PETER POWER / Contributor | Getty Images

What caused Poilievre’s dramatic fall from front-runner to losing his parliamentary seat?

Despite his surge in popularity earlier this year, which coincided with enthusiasm surrounding Trump’s inauguration, many attribute the Conservative loss to Trump’s influence. Commentators argue that Trump’s repeated references to Canada as the "51st state" gave Liberals a rallying cry: Canadian sovereignty. The Liberal Party framed a vote for Poilievre as a vote to surrender Canada to U.S. influence, positioning Carney as the defender of national independence.

Others argue that Poilievre’s lackluster campaign was to blame. Critics suggest he should have embraced a Trump-style, Canada-first message, emphasizing a balanced relationship with the U.S. rather than distancing himself from Trump’s annexation remarks. By failing to counter the Liberal narrative effectively, Poilievre lost momentum and voter confidence.

This election marks a pivotal moment for Canada, with far-reaching implications for its sovereignty and economic stability. As Glenn has warned, Carney’s globalist leanings could align Canada more closely with international agendas, potentially at the expense of its national interests. Canadians now face the challenge of navigating this new political landscape under a leader with a controversial track record.