Veteran financial analyst Alasdair Macleod says the U.S. is caught in a debt spiral. He warns of a stock market crash, the Federal Reserve printing unlimited amounts of money, and a surge in gold prices—all while wiping out the wealth of most investors. Macleod, who began his career as a stockbroker at the London Stock Exchange in 1970 and has since worked in investment management and banking, explains that rising bond yields, inflationary pressures, and an unnecessary war in Iran are accelerating the crisis. He previously predicted that if the 30-year U.S. Treasury yield exceeded approximately 5.2% to 5.3%, it would eventually reach 20%, a threshold that has already been crossed. The US is caught in a debt spiral. “We’re already in a debt spiral,” McLeod said. “I think what’s interesting is that very few people really realize that.” He pointed out that the conflict in Iran is driving up the prices of diesel, kerosene, and marine fuel, which underpin global logistics. The Houthi rebels have effectively brought Saudi oil exports to a standstill. A severe El Niño is expected to lead to food shortages. “The idea that this is just a sudden spike in inflation, just a one-off shock, nothing to worry about, is completely wrong.” Raising interest rates to defend their currencies would push governments further into a debt trap. “If they don’t raise rates, the value of their currencies will fall. That’s actually a very positive signal for gold. But if they do raise rates, that, in turn, pushes them further into a debt trap—which is also good for gold.” Gold is currency, not an investment . McLeod emphasized that gold is true currency, a retreat from the credit system. “Gold is a complete exit from credit transactions. That’s the key point. Gold represents all types of physical and tangible assets, and the entire commodity pool.” When gold rises, “it’s really just a decline in the value of the dollar.” He refutes the notion that gold has lost its value simply because its price has fallen by about $1,500 from its January peak. Paper markets and currencies distort value. “My research shows that currently, in gold terms, it’s only worth 20% of its proper value.” Central banks and sovereign buyers purchase physical gold outside the open market, so ETF inflows don’t always drive up visible prices. Stock Market Crash and Unlimited Quantitative Easing If yields climb further from their current levels above 5%, “the stock market bubble will burst.” Banks have already lent nearly $4.5 trillion to brokers, hedge funds, and through the repurchase market. Foreign investors, holding approximately $25 trillion in U.S. assets, will scramble to escape. “Foreigners were the first to realize this. They were the first to leave. But the vast majority of investors will react very slowly.” McLeod expects the Federal Reserve to print any necessary money. “Its mission is to save the whole system at all costs. In that sense, it’s unlimited quantitative easing. This will lead to further increases in bond yields. That’s for sure.” Profit margins will collapse, businesses will fall into recession, tax revenues will decline, and budget deficits will explode. “Simply put, everyone will lose everything. I regret to say that.” Foreign Investors, Saudi Arabia, and Energy Pressures The US is being driven out of the Middle East and reducing its commitments in Europe, leaving foreign investors with dollars they don’t want to hold, which they will sell. Saudi Arabia is facing collapsing revenues and rising spending. “Its GDP is collapsing, which means the current debt-to-GDP ratio of 33% will skyrocket. You’ll find it reaching 100% within months.” McLeod believes there is a high probability of a palace coup against Mohammed bin Salman—who “refuses to accept any deal that might embarrass him” and has mishandled the situation with the Houthis. The actual crude oil price implied by refined oil prices is far higher than the levels shown in the headline-grabbing figures for West Texas Intermediate (WTI) or Brent crude, exacerbating inflation. The biggest mistake investors may be making : McLeod's core message is that gold will rise and the stock market will crash because the public sector debt crisis will force unlimited credit creation. Holding paper assets and believing the dollar can maintain purchasing power is a critical mistake. There is no turning back to postpone these problems. The real currency is gold. The investment industry, managing nearly $170 trillion in US assets, has been operating under a fiat currency system for decades and doesn't understand this. McLeod argues that the current environment is fundamentally different from 2008 because the root of this crisis lies in sovereign debt, not private sector overreach. Foreign investors selling off US assets, rising energy costs, and the political impossibility of fiscal austerity have paved the way for gold to re-establish itself as the sole reliable store of value—while stocks and the dollar decline simultaneously.