Nick Giambruno: The Fed is Not Going to Save the Day
Tom welcomes back Nick Giambruno. Nick founded The Financial Underground and is Editor-in-Chief of the Contra Speculator. Nick discusses the coming shift in the world of reserve currencies. Powell's recent statements indicate there may be room for more than one reserve currency. There are several possible outcomes regarding global currencies. Eventually, countries will be forced through competition to move towards using a gold backed system. Nick believes that CBDC systems would almost certainly be worse than our current system. They would likely be restrictive and allow those in charge to eliminate privacy and micromanage their use in dangerous ways. Such a system seems doomed to failure. Money only needs to act as a store and allow for the exchange of value. So, fiat, gold, silver, crypto, or even barter might be workarounds under a CBDC system. Governments aren't more powerful than the free market and the voluntary choices of billions of people. Free parallel markets will emerge out of necessity. Nick explains how Bitcoin differs from the other coins. Bitcoin is not controlled by any one group and is therefore it's very hard to change the underlying rules around it. This is a good thing, as Bitcoin is the only one that can disrupt central banks. The Fed has largely lost its credibility, and they are manipulating public opinion. Just a look at their discussions about inflation. They should have no credibility because they deserve none. Since the Covid crisis occurred, the money supply has increased by forty percent. If your wealth hasn't increased by forty percent since March 2020 then you're losing ground. We are reaching an endgame that won't take long to play out. There is a lot of risk in this environment because governments have a tendency to flip the game board in these situations. He believes the pipeline sabotage will cause huge problems for Europe this winter. Plenty of things will come to a head by next year. Lastly, he says, "Hard assets are useful because they can't be easily produced and therefore are the best for preserving wealth. Don't put your savings into unbacked liabilities. Be prepared because the coming months will be wild." Time Stamp References:0:00 - Introduction0:38 - Dollar Replacements8:15 - Gold Standard Benefits9:22 - Digital Currencies11:06 - Parallel Alternatives16:16 - A Debt Jubilee?22:00 - Education & Inflation24:24 - Fed Credibility27:27 - Does Debt Matter?29:28 - Inflation Today30:40 - Optimism & Control34:20 - Pipeline Sabotage36:15 - Preserving Wealth39:37 - Wrap Up Talking Points From This Episode * The future of reserve currencies globally.* The functions of money and why CBDCs will fail.* Why the Fed has lost all credibility and how to preserve your wealth. Guest Links:Website: https://financialunderground.comTwitter: https://twitter.com/NickGiambrunoWebsite: https://nickgiambruno.com Nick Giambruno is a renowned speculator and international investor. He's the Founder of The Financial Underground and Editor-in-Chief of its premium investment research publication Contra Speculator. Nick travels the world searching for lucrative investment opportunities in overlooked markets. Nick specializes in identifying Big Picture geopolitical and economic trends ahead of the crowd. His approach to investing also focuses on profiting from distortions in the market. This includes identifying unfounded pessimism in beaten-up industries,