SUNDAY POLITICS: LIMITS OF THE POWER OF THE US, CHINA AND RUSSIA IN HISTORY

“Monetary policy is a powerful servant, but a terrible master.”

“Monetary policy is a powerful servant, but a terrible master (monster).”

— Former FED Chairman, William McChesney Martin

When the Central Bank becomes the Treasury's ATM

Imagine a giant money-printing machine placed in the heart of Wall Street. It starts spinning slowly, pumping out dollars to save banks in a crisis. Then it speeds up, fueling post-pandemic recovery. And at some point, no one dares to hit the brakes – because brakes mean unemployment, recession, electoral defeat.

It's not just the obsession with hyperinflation like Zimbabwe or Venezuela – but a much more sophisticated addiction. A dependency called Fiscal Dominance: when monetary policy must bow to politics, when the central bank loses its goal of controlling prices, to serve only one ambition – financing deficits.

America once thought it was immune to that. The dollar is the global reserve currency, US Treasuries are the ultimate safe haven. But the debt clock on 44th Street keeps ticking relentlessly, exceeding 36 trillion USD. The budget swells like a balloon without a release valve. And every election adds promises of tax cuts, increased spending, no one wants to talk about the bill.

In this week's article, Viethustle will dissect with you:

• What is Fiscal Dominance? Why is it dangerous like an “invisible tax” that doesn't need Congress to pass?

• The dangerous spiral between public spending, interest rates, and the central bank: Is America really different from Argentina or Japan?

• “One Big Beautiful Bill”: When fiscal policy becomes a short-term doping shot, in exchange for long-term public debt risks.

• The silent battle between the Fed and the Treasury: Who holds the brake, who steps on the gas?

• And the final, most important question: When will the discipline rope completely snap – and who will pay the price for it?