Heresy Financial and Palisades Gold Radio Updates 9-29-2022
The UK Just Broke
Heresy Financial: 9-29-2022
Breaking news, the UK is breaking!
The UK just had a major move in financial markets with number one, the Bank of England reversing course, pivoting and now committed to unlimited quantitative easing, buying up as many government bonds as needed to stop the financial crisis that was unfolding within hours centered around pension funds, invested in government debt with massive leverage.
This is all tied in as well to the tax cuts that were recently posed from the government that were causing a big strain on financial markets through increased borrowing costs to the government.
And I'm going to explain everything that's going on right now and what might happen next.
Timecodes
0:00 Video Overview
0:48 Intro
0:56 Bank of England Launches New Move to Calm Markets
2:12 Debt Monetization
5:55 Liability Driven Investment Funds
9:04 Impact on Pensions
Nick Giambruno: The Fed is Not Going to Save the Day
Palisades Gold Radio: 9-29-2022
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. D
on't put your savings into unbacked liabilities. Be prepared because the coming months will be wild."
Time Stamp References:
0:00 - Introduction
0:38 - Dollar Replacements
8:15 - Gold Standard Benefits
9:22 - Digital Currencies
11:06 - Parallel Alternatives
16:16 - A Debt Jubilee?
22:00 - Education & Inflation
24:24 - Fed Credibility
27:27 - Does Debt Matter?
29:28 - Inflation Today
30:40 - Optimism & Control
34:20 - Pipeline Sabotage
36:15 - Preserving Wealth
39:37 - 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.