What Can You Trust During Uncertain Times | The Gold Standard 2326

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Welcome to a new episode of The Gold Standard with your hostess Jennifer Horn. In today’s episode, Jennifer is joined by Ken Russo, Senior Vice President of the esteemed Midas Gold Group, to discuss what you can trust and rely upon during times of uncertainty and turmoil. Jennifer and Ken explore the implications of this diminishing trust and how it affects your financial decisions and strategies.

A few years ago, Ray Dalio warned that strong inflation is eroding people’s wealth. He said people shouldn’t be fooled into thinking they’re getting richer just because their financial portfolios are going up. “The United States spends more money than it earns and pays for it by printing money that is being devalued.” The direction of the US headed undermined the American-led world order since World War II. China is a rising power. The US Government is addicted to creating mounting levels of debt. Internal conflict over wealth inequality continues to build. With Nixon’s default on Treasury debt in 1971 and Roosevelt’s suspension of the gold standard in 1933, Ken reminds viewers to understand historical cycles in shaping investment decisions.

Studying the historical patterns of monetary systems will give you a better understanding of how markets rise and fall. The Seven Stages of Empire, as described by Mike Maloney, provide a framework to understand better the currency cycle and its implications for the economy. The cycle typically begins with a monetary system based on a commodity like gold, which gradually transitions to fiat money that can be printed without restraint. The debasement of the value of each unit of currency over time leads to a loss of faith in the currency and, ultimately, a market crash.

The seven stages of empire as it applies to US history:

Stage 1 - Sound Money: The United States initially had sound money backed by gold. However, in 1913, the Gold Exchange Standard devalued the currency by more than half.

Stage 2 - Public Works Programs: In the 1930s, President Roosevelt introduced massive public works programs funded through currency inflation and the end of convertibility of paper currency for gold.

Stage 3 - Bretton Woods: The US dollar became the supreme world currency after World War II, backed by massive gold reserves and a trade surplus.

Stage 4 - Never-ending War: The US transformed into a military/industrial state, with ongoing wars funded through deficit spending and currency inflation.

Stage 5 - Eternal Inflation: In 1971, the US abandoned the gold-for-dollars promise, leading to the dollar becoming a pure fiat currency. The petrodollar system emerged, extending the dollar’s monopoly as the world’s trade currency.

Stage 6 - Where We Are Today: US federal debt has soared. Inflation continues, and concerns about the dollar’s dominance have grown, especially with China’s emergence and its efforts to shift oil trading to the yuan.

Stage 7 - Tomorrow: In the final stage, the currency collapses, and capital misallocations are rectified. The affected nation(s) will likely have to return to a fixed standard of monetary valuation, such as the gold standard or possibly a technological innovation like cryptocurrencies.

Gold will ultimately reflect all the money the Federal Reserve has printed. Consider all the money that has been printed since the Covid excuse, all the currency since 2008, and the kick-the-can approach to handling the subprime mortgage crisis. The spot price of gold could go up multiple times what it is today. At some point, gold will ultimately reconcile the accounting. How can we be sure of this? Because, throughout history, it has always done so.

Ken introduces one of the world’s most popular silver bullion products, the American Silver Eagles. American Silver Eagle holds great significance in diversifying personal wealth. Produced by the United States Mint, the American Silver Eagle contains one troy ounce of .999 fine silver, making it a tangible and valuable asset. Its iconic design, featuring Adolph A. Weinman’s Walking Liberty on the obverse and a heraldic eagle on the reverse, adds to its appeal among collectors and investors alike.

Take proactive steps to protect your financial well-being. Remember, in these uncertain times, embracing the stability and value of assets like gold and silver can provide a solid foundation for wealth. Stay informed, stay diversified, and join us again on The Gold Standard as we navigate the ever-changing economic landscape.
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