The Fed Just Became a Political Tool

Freedom First  |  Monday, May 26, 2026

The Fed Just Became a Political Tool

Dear Reader,

Kevin Warsh was sworn in as the new Federal Reserve chairman this weekend.

Memorial Day weekend. The holiday we set aside to honor the people who died for American freedom.

Fitting timing. Because what just happened at the Fed is the beginning of the end of another kind of freedom.

The mainstream calls this a routine transition. Warsh is qualified. A former Fed governor. Goldman alum. Experienced.

That is not the point.

The point is HOW it happened. And what history says always comes next.

IN TODAY'S ISSUE

• Why handing politicians control of the money printer is always the beginning of the end — and what it means for your savings right now.

• Japan's bond market just cracked. What that means for the $1 trillion in U.S. Treasuries they are sitting on.

• The Treasury Secretary used a very specific word this week. You've heard it before. You know how it ended last time.

• The SpaceX IPO window is closing. Wall Street insiders have a head start. Here is how to get positioned before they lock you out.

THE PLAYBOOK IS ALWAYS THE SAME

Trump spent months publicly demanding Jerome Powell cut rates. Powell refused. Trump called him a fool. He threatened to fire him.

Eventually Powell was replaced.

That is not how central bank independence works. That is how it dies.

I have been studying monetary history since the 1970s. I know this story.

Here is where we are right now:

• The 30-year Treasury yield is above 5%. The highest level in nearly two decades.

• Japan's bond yields just hit levels not seen since 2007. Japan holds over $1 trillion in U.S. Treasuries. When they need to sell — and they will — who buys American debt?

• The U.S. national debt is $36 trillion and climbing. Washington has spent more in Trump's second term than in any comparable window in American history.

And here is what Treasury Secretary Scott Bessent said about all of it this week:

"I view elevated yields and headline inflation as 'transient' and they will subside when the Iran conflict ends."

That word. Transient.

They used that word in 2021. Inflation hit 9%.

They are using it again now — this time to explain away 5% Treasury yields and a bond market that is quietly screaming.

Peter Schiff said it plainly this week: the 30-year yield is near the highest in twenty years. Japan's bond market is cracking. And the man who just took over the Federal Reserve was put there by the same president who needed low rates to finance his deficit.

That is not conspiracy. That is arithmetic. And it is the same arithmetic that ended every empire that tried it before.

Before I show you exactly what this means for the dollar — and what you can do about it right now — there's something you need to see first.

THIS IS HOW EMPIRES END

I have seen this movie. Multiple times. Different countries. Same ending.

Rome debased its silver coins when emperors needed money for wars. They called it monetary policy. It was theft. By the time citizens figured it out, the currency was 95% bronze.

Weimar Germany printed reichsmarks to pay World War I reparations. The bankers called it economic stimulus. Wheelbarrows of cash could not buy a loaf of bread.

Argentina gave its central bank to Perón. They called it development funding. Today Argentina has 120% annual inflation and half the country lives in poverty.

The playbook is always the same. The government takes control of the money printer when the bills get too big to pay any other way. Politicians call it transient. The citizens call it ruin.

America is not Rome. Not yet.

But $36 trillion in debt is not a small problem. And a Federal Reserve that answers to the White House is not an independent institution.

HERE IS WHAT YOU CAN CONTROL.

Not the debt clock. Not the Treasury yield. Not who sits in the Eccles Building.

What you can control is what you own.

The people who survived Rome's debasement held gold. The people who survived Weimar held real assets — land, hard commodities, things a government cannot print. The people who got wiped out held paper.

I have been buying gold since the 1970s. I started buying Bitcoin in 2020. I hold silver. Not because I am pessimistic about America. Because I am realistic about what politicians do when the bills come due.

The bill is due.

The new Fed chair will face a choice: raise rates and crash the economy, or cut rates and destroy the dollar. There is no third option. There never is.

Which path he takes will tell you everything about what comes next.

I already know which path I am taking.

To your freedom,
Robert Kiyosaki

P.S. While Washington argues about who controls the money printer — the smart money is already positioning in assets the Fed cannot debase. Here is where I am looking right now.