Richard Duncan is here today to discuss global macro developments as he outlines a long-term macro framework, arguing that the modern global economy has shifted from traditional capitalism to a system driven by credit expansion. He explains how, since the 2008 financial crisis, government borrowing and Federal Reserve money creation have replaced the private sector as the primary engine of growth, fueling massive asset inflation and a historic surge in wealth, but also creating an “everything bubble” highly dependent on low interest rates. Duncan warns that rising inflation could push interest rates higher and trigger a collapse in asset prices and a severe recession. Richard emphasizes that the greatest systemic risk is a contraction in credit and argues that sustained investment in innovation may be the only path to outgrow the debt burden before a long-term crisis emerges. Today we discuss...

• Richard Duncan explains his macro framework, arguing the global economy shifted from gold-backed discipline to a credit-driven system after 1968.
• Credit expansion, rather than productivity, has been the primary driver of economic growth for decades.
• Globalization and trade deficits helped suppress inflation, enabling lower interest rates and more debt growth.
• Following the 2008 crisis, government borrowing and Federal Reserve intervention replaced the private sector as the main engine of credit expansion.
• Massive stimulus and quantitative easing fueled a historic surge in asset prices and household wealth.
• The U.S. now faces an “everything bubble,” with asset valuations stretched relative to income.
• War in the Middle East could drive higher energy, fertilizer, and food costs, worsening global inflation.
• Higher rates threaten to pop the credit-fueled bubble and trigger a significant recession.
• Deglobalization and reshoring manufacturing would likely be highly inflationary and destabilizing to the system.
• Despite high debt levels, the system can continue functioning as long as credit keeps expanding.
• Richard suggests a future shift from “creditism” to a new system driven by artificial intelligence and exponential gains in cognition.
• Gold’s rise is attributed both to the broader asset bubble and declining global trust in U.S. financial dominance.
• Central banks are increasingly accumulating gold as a hedge against geopolitical and monetary risk.
• The biggest overlooked risk is a contraction in credit, which could collapse the entire economic system.
• Duncan argues that aggressive investment in innovation and technology is key to outgrowing the debt burden.
• Without continued credit expansion or productive investment, the system risks a severe long-term depression.