The Global Financial System is Broken
The Global Financial System is Broken
WTFinance: 2-26-2025
The WTFinance podcast recently welcomed back Larry Lepard, Managing Partner of Equity Management Associates, a veteran investment manager with over 40 years of experience and a staunch advocate for sound money.
Lepard is also the author of the newly released book, “The Big Print: What Happened To America And How Sound Money Will Fix It,” and the discussion delved deep into the issues facing the American economy and the potential solutions he proposes.
The conversation spanned a wide range of critical topics, starting with Lepard’s central thesis: What exactly happened to America?
He points to the increasing financialization of the country as a primary driver of the current problems. This means a shift away from productive industries and towards complex financial instruments, leading to instability and ultimately, a detachment from the real economy.
A key question raised was: How long can this system survive? Lepard doesn’t paint a rosy picture, suggesting that the current trajectory is unsustainable. He pinpoints interest as a core issue, arguing that artificially low interest rates have fueled malinvestment and distorted the market signals necessary for a healthy economy.
He also expressed concerns about the potential of losing control of the bond market, which could trigger a significant financial crisis.
Given his advocacy for sound money, the conversation naturally turned to precious metals. Lepard remains bullish on Gold, viewing it as a hedge against inflation and a store of value in uncertain times.
He also discussed his intriguing perspective on Bitcoin, explaining his rationale for its potential as a valuable asset. He even speculated on the possibility of sovereigns buying Bitcoin, a development that could significantly impact the cryptocurrency’s long-term value.
The podcast further explored conventional economic wisdom, questioning the commonly held belief that the constant growth of the money supply is necessary for economic growth. Lepard challenges this notion, arguing that it ultimately leads to inflation and erodes the purchasing power of the currency.
In a more unconventional tangent, the discussion even touched upon the meme cryptocurrency D.O.G.E. (Dogecoin) and the possibility of it somehow playing a role in a potential system reset.
While seemingly a lighthearted moment, it highlighted the growing distrust in traditional financial institutions and the search for alternative solutions, however unconventional they may seem.
Lepard also addressed the growing concentration of wealth in the hands of a few, a consequence of the financialized system he criticizes. This disparity, he argues, further exacerbates the existing problems and contributes to social and economic instability.
Despite the bleak outlook, Lepard offered a glimmer of hope, outlining a potential positive outcome.
He believes that a return to sound money principles, coupled with a focus on productive industries and responsible fiscal policies, can steer America back towards a more stable and prosperous future.
Ultimately, the podcast concluded with a call to action. Lepard’s one message to takeaway is a plea for individuals to educate themselves on the principles of sound money and to demand responsible governance from their elected officials.
He believes that informed citizens are the key to driving the necessary changes and ensuring a more sustainable future for the American economy.
