We’re Headed to Monetary Panic
We’re Headed to Monetary Panic
Liberty and Finance: 9-12-2025
In an era defined by digital transactions and complex financial instruments, it’s easy to lose sight of what truly constitutes “money.”
A recent compelling discussion with Phil Low on Liberty and Finance cuts through the noise, offering a stark yet insightful perspective on fundamental economic concepts, the critical role of precious metals, and the inevitable future of finance.
Low’s central premise challenges our modern assumptions: the true nature of money isn’t determined by technology, but by trust. While our digital world thrives on speed and convenience, Low argues that technology merely streamlines the transfer of credit.
And credit, fundamentally, is a promise rooted in trust. When that trust erodes, so does the credit system.
This erosion of trust isn’t a hypothetical. Low points to a recurring historical pattern: dishonest credit systems are inherently unstable and destined to collapse.
When this happens, a “monetary panic” ensues. People, sensing the instability of their digital or paper promises, rush to convert their credit into physical, tangible money – historically, gold and silver. It’s a flight to safety, where only unencumbered, physical assets are truly trusted.
But here’s where Low offers a refreshing counter-narrative to common doomsday predictions. He asserts that the collapse of a credit system does not equate to societal collapse. Instead, it leads to a restructuring.
In this new landscape, individuals who hold physical money – the “stackers” of gold and silver – become integral “nodes of civilization.” They possess true liquidity, enabling the revival of honest trade based on real, physical money. Low even illustrates how essential services, like power and coal supply, would organically resume through informal credit, naturally backed by physical gold. It’s a vision of resilience, not ruin.
Low also delves into the foundational economic philosophies shaping our world. He sharply dismisses traditional Keynesian macroeconomics as “junk science,” arguing it promotes heavy-handed government intervention and artificial market manipulation.
In stark contrast, he champions the Austrian School of Economics, which prioritizes free markets, individual liberty, and a positivist approach. This means observing and respecting natural market processes without interference, rather than attempting to prescribe what “should” be done (normative economics). For Low, the market will always find its equilibrium if left alone.
Perhaps the most chilling warning from Phil Low is his discussion of “The Great Taking.” This refers to a potential legal and financial event where modern financial instruments—our brokerage accounts, 401ks, and other digital assets—could be subject to confiscation or centralized control.
It’s a stark reminder of the tenuous nature of wealth held solely in digital or paper form within the existing financial architecture.
So, what’s an individual to do? Low’s advice is clear and unequivocal: prioritize physical metal ownership. Holding tangible gold and silver is paramount. Only after securing physical holdings should one consider investing in precious metals mining mutual funds, and crucially, outside of typical brokerage systems, potentially as a way to diversify a portion of one’s wealth.
Phil Low’s insights offer a powerful lens through which to view our financial future. His message isn’t one of despair, but of preparedness and understanding the fundamental truths about money and trust. As the global financial landscape continues to evolve, or perhaps, unwind, understanding these dynamics becomes not just prudent, but essential for safeguarding your financial well-being.