(Kitco News) - The recently signed "Genius Act" is a deliberate plan to trigger hyperinflation using stablecoins as its primary tool, according to financial analyst Lynette Zang.
In a detailed, one-hour interview with Kitco News on Monday, Zang alleged the act is a core part of a coming global financial reset. "When President Trump signed the Genius Act, he changed the global monetary system," Zang said. "There's really not one doubt in my mind... that the stablecoins... will be the mechanism that will usher in and actually create the hyperinflation that we need to do the ultimate shift into the new system."
Zang's warning comes amid a flurry of conflicting economic signals. While markets rallied last week on the Federal Reserve's dovish pivot at its Jackson Hole symposium, consumer credit card delinquencies are rising at the fastest pace on record. Zang argues that the public is being deliberately misled by official statistics as part of the end of the currency's lifecycle.
The mechanism for this hyperinflation, according to Zang, is a deflationary shock caused by the mass adoption of corporate-issued stablecoins under the new law. As the public uses traditional bank deposits to buy stablecoins, that money is drained from the commercial banking system. "That means that the banks now have less money to lend out into the economy," Zang explained. "And oh my goodness, Jeremy, that's quite deflationary... And how do you fight deflation? Print."
This plan is unfolding against what Zang calls a "war on data." She pointed to the recent political shake-up at the Bureau of Labor Statistics as a sign that the government is intentionally obscuring the truth. "As bad as it was before, quite honestly, now we are flying absolutely blind," she stated, referencing the consistent downward revisions to U.S. jobs numbers throughout 2025.
At the core of her concern is the U.S. Treasury market, which she described as the "foundation of the global markets." Zang pointed to declining foreign ownership of U.S. debt - with official data showing a drop of over $300 billion in the last year - as a sign of a "private crisis among central banks where the traditional buyer base is just simply evaporating."
This systemic fragility extends to the banking system, which Zang called a "big casino" built on a mountain of derivatives that are "just big, unsubstantiated bets." She warned that the risk from these derivatives, which the Office of the Comptroller of the Currency (OCC) reports is a notional exposure of over $180 trillion for the top four U.S. banks, could trigger a "huge, huge financial crisis that will make 2008 look like chump change."
In this environment, Zang claims the only true safe haven is physical precious metals. "If you don't hold it, you don't own it," she repeated. She dismissed the official paper price of gold as a "joke" and stated she is "a hundred percent" certain that governments will attempt a "globally coordinated effort" to confiscate gold in the next major crisis.
"I personally do not own any stocks or bonds or ETFs or mutual funds or annuities or any of that fiat money garbage," Zang said, "because I am crystal clear that we're at the end of this currency's lifecycle."
To watch the full, one-hour interview with Lynette Zang, see the embedded video above.