We’re Near Endgame, Ponzi to Blow up or Collapse
We’re Near Endgame, Ponzi to Blow up or Collapse
Liberty and Finance: 8-23-2025
Have you ever really stopped to consider what money is? Is it just government-issued paper? A digital entry on a screen? Or is there something more fundamental at play?
A recent, eye-opening discussion between Kaiser Johnson from Liberty and Finance and Phil Low dives deep into these very questions, challenging conventional wisdom about monetary theory and offering crucial insights into our current economic landscape.
If you thought you knew money, this conversation will make you think again.
For many, the prevailing idea is the “sovereign force theory”—the belief that money’s value comes from government decree and its ability to enforce taxation. But Phil Low, drawing on the Austrian school of economics, presents a compelling counter-argument: money isn’t imposed; it emerges naturally as the most liquid commodity to solve the “coincidence of wants” problem in trade.
Imagine trying to barter for everything you need! Money simplifies this. Phil uses vivid analogies, from seashells to “life certificates” and the stark reality of coercion, to illustrate that tokens enforced by force do not truly monetize.
They may be instruments of taxation, but they fail to become a true medium of exchange beyond that specific use case. The market, in its wisdom, seeks out the most desirable, divisible, and durable commodity to facilitate trade.
The discussion then takes us on a historical tour, emphasizing that from ancient times right up to August 1971, the world’s economies largely operated on a gold and silver standard.
This wasn’t a fluke; it was a testament to the market’s natural gravitation towards these precious metals as reliable forms of money.
What’s truly fascinating is their analysis of the supposed “departure” from the gold standard in 1971.
They argue that this move didn’t cause a sudden repricing of goods, as one might expect from a purely fiat system. Instead, the system has remained effectively gold-backed, not through direct convertibility, but through credit expansion, artificially extending the prior gold-based system rather than truly becoming the “sovereign fiat system” most commonly believe it to be. This is a subtle yet profound distinction that upends traditional narratives.
When it comes to precious metals, there’s a critical distinction. Monetary metals like gold, silver, and copper are standardized, stamped, and recognized as currency, making them easy to trade. Think of a gold coin.
Non-monetary metals, conversely, are jewelry, artifacts, or raw forms – beautiful, perhaps, but less liquid in trade. In a crisis, the ease of valuation and transaction makes monetary forms vastly preferable. This nuance is crucial for anyone considering precious metals as a safeguard.
The conversation shifts to the urgent present, highlighting the extreme volatility in financial markets. Phil Low describes the Federal Reserve’s current efforts as struggling to maintain a “Ponzi-like scheme,” printing exponentially increasing amounts of fiat currency to prop up failing banks and government debt. This desperate measure results in wild swings in interest rates and market panic, further exacerbated by conflicting opinions on Fed policy.
This isn’t just academic talk; it’s a warning. Phil advises viewers to prepare by holding monetary gold and silver alongside some paper dollars. His critical caution: do not rely on last-minute conversions or attempt to “trade the crash,” as the risks are simply too extreme. Early, calm preparation is paramount.
The discussion also briefly touches on the ever-expanding role of government and the increasing complexity of the state’s involvement in the economy, further complicating the financial landscape.
Kaiser Johnson and Phil Low offer practical advice on acquiring and holding precious metals, emphasizing the importance of understanding why you’re doing it and how to do it safely. Phil promotes his channel and resources, inviting those interested to delve deeper and prepare thoughtfully for what may lie ahead.
This isn’t just a video about economics; it’s a call to re-evaluate our foundational beliefs about money and to calmly, yet urgently, prepare for the financial future.