Are we Facing a Total Economic Reset?
Are we Facing a Total Economic Reset?
As Good As Gold Australia: 12-6-2025
In this insightful discussion, Brian Pa from As Good as Gold Australia interviews Alasdair Macleod about the future of the global economy, focusing particularly on the unsustainable growth of US debt, the looming collapse of fiat currencies, and the critical role of gold and silver as real money.
Alasdair emphasizes that since the abandonment of the gold standard in 1971, government debt has doubled roughly every decade, creating a debt bubble that is on the verge of bursting.
This collapse will destroy purchasing power, trigger rising bond yields, and lead to a severe economic downturn reminiscent of the Great Depression but potentially worse.
The only viable protection against this economic destruction is holding real money, primarily gold and silver, as fiat currencies lose their value.
Alasdair explains the mechanics of currency collapse, pointing out that hyperinflation is a symptom of the loss of purchasing power rather than the cause.
He highlights the rise in bond yields as a warning sign and notes that living standards will be drastically affected. Mortgage foreclosures and the collapse of credit availability will become widespread, with borrowers potentially benefiting if they can maintain payments while lenders suffer losses.
The conversation also delves into the manipulation of gold and silver prices via derivatives markets.
Alasdair discusses the severe liquidity crisis in the silver market, exacerbated by China’s recent export bans, which are part of a broader strategy to control critical minerals.
The silver market’s deficits and the collapse in derivative open interest signal an impending failure of these financial instruments, which could cause a significant price surge in physical metals. This phenomenon is expected to extend to gold, undermining the entire derivative system and exposing systemic risks.
The interview critiques the current economic commentary landscape, where few analysts challenge mainstream narratives about fiat currencies, often due to editorial pressures or a lack of understanding.
Alasdair stresses the importance of returning to a gold-backed currency system to restore economic stability, warning that the current trajectory will lead to catastrophic outcomes.
He also highlights the disconnect between government policies and real economic management, casting doubt on the ability of politicians to effectively guide the economy.
Finally, Alasdair refrains from making precise price predictions for gold and silver, arguing that the collapse of fiat currency value will distort price metrics.
Instead, he advocates for focusing on preserving purchasing power through real assets. The interview ends with a forward-looking note about the ongoing economic turmoil and the crucial role precious metals will play in securing financial security amid the coming crisis.