The debate over whether central banks have lost control is no longer academic. For Simon Hunt, it is a foregone conclusion. In his recent interview with Dave Russell on GoldCoreTV, the veteran strategist lays out a case that is part data-driven critique, part existential warning. What he outlines is not just a broken economic model, but a system teetering on the edge of self-destruction.
At the core of Hunt’s argument is the idea that modern growth is no longer productive but extractive. He notes, for example, that it now takes $3.64 of credit to generate a single dollar of U.S. GDP, up from just $0.64 a few decades ago. This is not merely inefficient. It is symptomatic of a terminally indebted system cannibalising itself to stay afloat.
Hunt’s base case is bleak but logical. Central banks, he suggests, will try once more to delay the reckoning through coordinated fiscal and monetary expansion. The result will be stagflation: low growth coupled with persistent inflation. But this is only the prelude. By 2027, Hunt expects inflation to break into double digits, with long-term Treasury yields following. For a system that relies on cheap debt to roll over obligations, such a shift is not a correction. It is a collapse.
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What distinguishes Hunt’s perspective is not just the argument that inflation is inevitable, but the idea that Western institutions may no longer have the geopolitical capacity to fight it. He contends that China and Russia, by aligning trade and financial policies outside the dollar system, are setting in motion a silent but systemic decoupling. Central banks, in his view, are being strategically outflanked.
Hunt also flags a more immediate threat. The Boston Federal Reserve’s concern over systemic risks tied to private credit exposure suggests a fragile banking sector beneath the veneer of post-pandemic recovery. If recession takes hold before the inflation cycle reaches its apex, policymakers will face a nightmarish choice between liquidity injections that fuel inflation or tightening that triggers defaults.
The current stand-off between Donald Trump and Jerome Powell, including reports that Trump attempted to fire the Fed chair, is emblematic of this dysfunction. Yet as Hunt wryly notes, the Fed’s influence ends at the short end of the yield curve. The real damage will come from bond markets pricing in structural insolvency, not political theatre.
So what is to be done? Hunt’s recommendations verge on survivalist: hold physical gold, avoid long-term positions, and stock food. These are not the usual hedges against market volatility. They are safeguards against institutional failure.
His outlook may strike many as extreme, but it is grounded in arithmetic, not ideology. If Hunt is correct, then we are not in a transitional phase of capitalism. We are in its convulsion. The decade ahead may not be about optimising portfolios or rebalancing allocations. It may be about preserving purchasing power and insulating households from policy error.
In that light, Hunt’s final question, not how to profit, but how to endure, is the most honest one anyone in finance can ask right now.
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