717: Technology - all roads lead to Bitcoin – the collapse of the US Bond Market, China and the UK de-industrialisation
04-13-2025
PropertyInvesting.net team
The pace of technological innovation is accelerating and we are entering a profound new period where the following technologies will start to dominate - centred around Artificial Intelligence:
1 autonomous vehicles and transportation – for supply chain distribution, leisure and mobility
2 autonomous robots – for manufacturing, healthcare, buddies and soldiers
What few have realised is there is an AI and Robotics race between the USA and China – one of the main reasons for the tariff war between these two countries.
The AI agents and AI robots will be used to replace humans in many jobs and improve manufacturing efficiency, reduce costs and improve access and abundance of high quality helpful products at low prices – examples:
1 Autonomous on-call transportation for leisure at low cost
2 Elderly help-social care – assisting people getting around the house and doing chores and odd jobs – whilst being a buddy for lonely single people
This changes will start mid 2025 – we will start seeing autonomous electric vehicles and robots appearing in 2026. Whether we like it or not, the technology is being developed and is almost inevitable. In reality – humans will be replaced by AI-robots on battlefields. They will be used to protect borders - for defence and regrettably attack or at least the threat of attack.
The first superpower to have robots will of course have a huge advantage – and will be able to bully other countries with the mere threat of these replaceable robots being launched on humans on a battlefield. Yes, it’s scary – but again, almost inevitable it will happen. Governments wont be telling the general public about this “AI-robotics race” between the USA and China – because they wont want to scare people and start demonstrations. They would rather develop this military capability in reserve – as soon as possible.
The USA’s deep distrust of China is because:
* China is an autocratically run communist run country - human rights are poorly upheld
* China steals and copies USA’s and other nations technologies
* China has kept its currency suppressed for years – to win manufacturing market share to help develop its country and feed it's 1.3 billion inhabitants – helping keep their gigantic population busy in work with improving living standards whilst staying happy and fulfilled.
The current Republican administration have realised how far ahead China has got in the last four years of the Biden administration, whilst it’s own manufacturing sector has been decimated, and claim “Biden was asleep at the wheel with his cognitive decline ignored by the Democrats”. The Republican clearly want to blame Biden and China for the US economic woes and crumbling manufacturing and infra-structrure. This will not change in the next four years. Allowing China into the World Trade Organisation on such lose terms was a monumental disaster for the average American worker. President Trump wants to reverse this – by penalising overseas manufacturing whilst encouraging global companies to set up shop in the USA. Anyone who has visited China in the last few years will understand how far advanced their infrastructure is compared to the degrading US infrastructure. This is probably extremely embarrassing for the Republican’s they want the USA to be number 1 – not China.
This is the route of the issue. A mixture of envy/jealousy, a feeling of being ripped off, and a feeling of loathing for Biden and the Chinese communist party – to make matters worse, free speech in China is almost non existent. The social-liberal left cosying up to the communists in China at the detriment of the America First strategy. During economically challenging inflationary period - it's easy for populist governments to whip up anger against a set of people - and in this case it seems to the USA blaming China.
The US debt pile is gigantic – about $30 Trillion. Much of this needs refinancing by the end of 2025. Janet Yellen the previous Treasury Secretary was sloppy in issuing a gigantic debt pile with short financing times. Trump was hoping the tariffs, a form of tax, would help reduce interest rates. Instead, bond prices dropped and bond rates shot up – meaning the financing costs on the US debt pile went up. This market reaction developed a mini-crisis and the USA announced a 90 day pause on the tariffs above 10% for all countries except China. This then calmed the markets.
It was a self-inflected crisis. Our view is that the USA had to back down. It’s quite likely that China start dumping their treasury bonds to create this crisis – the best tool they have to react in a proportionate manner to the approx. 150% tariffs.
The reason for mentioning all of this is that – the US bond market is in trouble. The safe heaven status and reputation of the US Bonds or Treasuries has been severely dented. The last bond auction was very poorly received. This is a turning point in the US economic history. A seminal moment. It means the USA can not longer rely on overseas countries to by their debt. These countries now want to higher rate because of the higher risk. This is a disaster for the USA. Their whole economy has been built on issuing cheap debt to fuel their deficits. The party is over.
In reality what this means is that the Fed will have to step in to buy the Treasuries – via the money printer to keep the rates down. This means more liquidity is just around the corner. This will drive down the value of the dollar. Interest rates may not drop as far as people thought likely. This money printing will then lead to another bout of inflation in the USA.
The ramifications for investors is that:
1 Gold prices will rise sharply
2 Bitcoin price will skyrocket
3 Microstrategy (Strategy) stock price will skyrocket
4 Solana (cryptocurrency) price will skyrocket
In other words – what we are saying is the bond market will start collapsing into Bitcoin – people will flock to Bitcoin and Microstrategy to preserve their wealth in this new higher inflationary world. Money printing is inevitable. Bond prices dropping is highly likely. Liquidity injection is inevitable. US financial and economic turbulence will be the order of the day for the next few years – it’s just the beginning.
US stock markets could initially drop further, but then rise sharply again once liquidity is injected by mid 2025. We see a monumental Bitcoin price increase in the second half of 2025. Microstrategy stock price will be one of the biggest beneficiaries.
Commercial property prices in the USA will crash because:
1 Rates for commercial property loans will rise sharply as occupancy rates will drop
2 Waves of office workers will lose their jobs replaced by AI agents
3 More public sector jobs will be lost in Washington – leading to derelict offices
4 No-one will need older office blocks
Many people will continue to work from home – suppressing office occupancy
In summary, commercial property in the USA and UK are probably the worst investment we can think of. Very risky – with the market likely to collapse.
Going back to the USA and China – there is a real threat of a World War. The main reason is that these two economic powers a fierce rivals. The USA is bullying China. The Chinese are very proud and wont want to be bullies.
They wont want to lose face. The USA is trying to work on Russia to get them more aligned with the Americans – because during Biden’s tenure, Russia and China were working together against the US interests. Within this complex mix is Iran, Israel and Ukraine. The USA want to forge new alliances will both Ukraine, Russia and Japan whilst continue their strong alliance with Israel and Saudi Arabia – and their enemies seem to be China and Iran. They likely also resent the help China has been giving Iran. They fear Iran is only weeks away from getting a nuclear bomb capability – and they simple wont allow this to happen.
The US also want to bring Taiwan into their sphere of influence. You can now see that Taiwan, Iran and China are all flash-points. This is without event mentioning North Korea – that is indirectly being supported by China.
In summary, the USA wants to isolate China and Iran – and like a bully control all other countries to align them. Europe is a mere side show. They have a deep distrust of the EU since they view is as run by an unelected bureaucracy that stifles free speech – not a technocratic meritocracy like the USA.
Another key point we would like to highlight is that Europe is doomed to have a failing economy – far worse than China and the USA because:
1. It is run by bureaucrats with no business, engineering, science or private sector experience
2. Environmental taxes and regulations stifle innovation and businesses
3. EU energy imports are colossal and rather than trying to find/develop oil and gas – they have made a monumentally disastrous decision to build wind turbines and solar plants that are installed intermittent capacity – therefore driving energy prices skyrocketing. Car manufacturers and indeed all businesses are buckling under the strain since this is a key input cost
4. European car manufacturers have been far too slow to innovate and develop EV and autonomous vehicles. European hybrid and ICE car manufacturing will collapse – it is inevitable - they are many years behind the Chinese (BYD) and Tesla – regrettably they are "toast".
5. The virtue signalling woke climate change agent is leading to the demise of the remaining manufacturing – a de-industrialisation on a grand scale – this is now being outsourced to the USA (via tariffs and bullying) and to China (via lower cost production).
For the UK, it’s an emergency crisis - it started with the combination of the Labour government and Trump administration H2 2024. The UK is are doing exactly the opposite to what is required. We are building more wind turbines and solar farms with all materials imported, meanwhile destroying the remaining North Sea oil and gas production. We have closed all coal mines, stopped a new clean coal mine from opening in Cumbria and have just closed Luton car plant, Port Talbot Steel works and Grangemouth oil refinery. On Saturday 12 April, Parliament was recalled to start to discuss saving Scunthorpe when everyone realised we would not be able to build war ships with our own metal - be reliant on China. You just couldn’t make it up. It is inevitable the UK economy will collapse because the country is being run my bureaucrats and lawyers with zero knowledge of:
1 Science
2 Engineering
3 Private Sector
4 Business
We simply don’t stand a chance against the highly competitive USA and China. In a very British way – it's stiff upper lip – a proud nation collapsing steadily as raging inflation steals wealth from the workers, unemployment rises and crime levels rise. A massive drugs problem and mass immigration of more poorly educated citizens – whilst millionaires and highly educated/skilled wealth creators leave in droves. There is no measure of capacity or capability of UK human resources – but clearly the gig economy seems important but it’s difficult to see where value is being created in the UK. All you see on British TV - the BBC - is posh people making cup cakes, going on holidays and grooming dogs. The country is turning into an industrial museum – whether by design of chance.
What we should look forward to is far higher inflation, higher mortgage rates, lower employment, declining living standards and more homelessness – as a direct result of high energy prices, the bloated government and public sectors - that help stifles innovation and business. We are uncompetitive against the rest of Europe, never mind the USA and China. With four years of Labour to look forward to – it couldn’t have happened at a worse time. The decline will be steep and inevitable because the wrong policies and work practices or being implemented, with almost no appreciation for engineers, scientists and private sector entrepreneurial acumen.
For all UK investors that see the writing on the wall – the best way of getting high returns is to:
1 Buy Bitcoin and/or Microstrategy shares - the decentralised alternative financial system
2 Buy Tesla shares – with autonomous EV, humanoid robots and energy storage – that will dominate the western world with these new technologies – the best and safest investment on the planet
We hope this Special Report has given you some interesting insights – into the macro-economic world and how technology will soon change the world. And highlighted the very best investments in these uncertain times.