Our Dying Financial System | The Gold Standard 2332

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Hostess Jennifer Horn and her special guest Ken Russo, SVP of Midas Gold Group, discuss “Our Dying Financial System.” Gain valuable insights into the vulnerabilities of traditional currencies and the role of owning physical precious metals to protect your spending power. The recent difficulties in banks remind us how fragile our financial system is.

Since the 2008 global financial crisis, our economic system has become more vulnerable to problems. Problems in the financial markets make things harder for central banks. And to make things even more complicated, prices for items continue to rise more than expected. Your dollar continues to buy less. Jennifer and Ken help us understand the economic challenges ahead and remind us that there are steps we can take to protect our finances. But as Ken points out, “You can’t buy fire insurance for your house when it’s already on fire.”

One prime example of market fragility shines a spotlight on the Treasury market’s liquidity. This seemingly secure haven exposes the vulnerability in times of stress, as witnessed in events like the 2014 flash crash, the 2019 repo market pressures, and the disruptions brought on by the Covid-19 pandemic in 2020. The aftermath of the 2008 crisis casts a shadow over the present financial landscape. The extensive quantitative easing that followed the crisis led to an expansion of the Treasury market, surpassing buyers’ capacity to hold such assets. Global shifts and US-China decoupling add further complexity, with Asian nations, once buyers, now becoming sellers. The Federal Reserve aims to reduce its T-bill holdings through quantitative tightening. The role of big banks as broker-dealers in the Treasury market faces challenges due to post-2008 regulatory constraints. This situation can lead to market illiquidity, raising questions about the reliability of US Treasuries as a haven.

Why do banks receive special treatment? While banks are undeniably safer post-2008, their discontent with capital requirements raises questions. The disparity becomes even more apparent when comparing their single-digit capital requirements with other industries holding multiples of that. Banks take calculated risks to maximize profits and do it with your money. The financial system’s pace of innovation continues to outstrip regulatory efforts, paralleling scenarios leading to the 2008 meltdown.

The priority of our financial system is Wall Street, not Main Street. There is an apparent disconnect between financial market interests and the real economy. The financial system is still dealing with the fallout from 2008. There’s tremendous risk in the markets, and it’s getting riskier by the day.

There is no substitute for owning physical gold and silver to safeguard your wealth. While seemingly convenient, paper ETFs and gold mining stocks expose investors to counterparty risks and systemic vulnerabilities. The true strength of gold and silver lies in their tangible nature – they are wealth you can hold, immune to digital glitches and market manipulations.

In times of crisis, when confidence in financial markets wavers, the enduring allure of precious metals shines brighter than ever. History has shown that during currency devaluations, hyperinflation, and economic meltdowns, physical gold and silver have preserved purchasing power while paper assets collapse. ETFs and mining stocks can falter due to factors beyond your control, such as the solvency of counterparties and the complexities of corporate management. To navigate the uncharted waters of geopolitical tensions and the global economy, you need the timeless security and reliability of tangible gold and silver – the ultimate store of value.

The 50-gram Gold Valcambi CombiBar is a modern marvel, encapsulating the essence of convenience and value in its sleek design. Comprising fifty individual 1-gram squares of pure 24-karat gold, this ingeniously crafted bar offers a new dimension to gold ownership. Its segmented structure grants investors the flexibility to diversify their holdings while retaining the intrinsic worth of each gram. The CombiBar represents accessibility, allowing individuals to own a tangible precious metal without the commitment of larger denominations. In a world where economic fluctuations and uncertainties abound, this innovation in gold ownership offers a balance between flexibility and security.
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