Paul Buitink talks to economist and founder of Monetary Metals Keith Weiner again about the future of our financial system.
Keith first dissects the current gold bull run and why it's different from the one from 2009-2011. He explains where the demand is coming from (India, China, Turkey, Arab countries) and how people in the West are also slowly but surely waking up.
They understand the debt isn't sustainable. People lose faith in the fiat money system and this is underpinning this bull market.Keith also explains why BRICS central banks buy gold and use it not only as a store of value but a means of exchange too.
He also lays out why more debt leads to more demand for dollar and more debt. This dynamic will eventually lead to a collapse and hyperinflation, but this is still years away. An environment of very low interest rates is a sign things will go very wrong Keith says, as he has also written in his dissertation. Also backwardation in the gold market is something you need to keep an eye on, when spot prices are higher than future prices.
Keith describes the role of gold after the collapse. Different private gold standards could emerge. He doesn't expect coins to be used. He also weighs in how Bitcoin and gold compare. He would love the market to pick the winner. We end the episode with whether there is a future for fiat currency after the hyperinflationary collapse, gold price revaluation and Fort Knox.
Sources:
https://www.monetary-metals.com/
https://www.monetary-metals.com/insights/articles/when-gold-backwardation-becomes-permanent/
https://keithweinereconomics.com/2012/02/02/gold-bonds-to-avert-financial-armageddon/Follow Paul on X here:https://x.com/paulbuitinkTimestamps:
0:00 Trailer and intro
1:52 Why the current gold bull run is different from 2009-2011
8:12 West waking up to unsustainable debt levels
11:26 Is gold correlated with interest rates, inflation and money growth?
12:34 When have central banks bought enough gold?
17:35 The process of debt collapse
18:05 The importance of backwardation in gold
20:18 Gold's role after the collapse
27:27 Competing private gold standards
32:25 Repatriation of gold
35:42 Bitcoin Standard vs Gold Standard: let the market have it
40:48 Will governments allow free markets for money
44:00 Future of fiat currency
48:07 Can collapse still be averted?
49:38 Gold price revaluation
50:50 Is the gold in Fort Knox there?
54:16 Outro and final remarks
