Alasdair Macleod: EU Banking System Imploding
Tom welcomes a new guest to the show, Alasdair Macleod. Alasdair is the Head of Research for Goldmoney and an advocate for sound money.
Alasdair discusses the recent price action with gold and how it is typical for it to fall in November near the end of the option cycle. It often rebounds in December, which seasonally speaking is an excellent time to get into gold. He expects an exciting market going into 2021, especially when considering the economic environment.
The dollar is looking very weak, and the yield on the ten-year is rising. Alasdair believes there is no shortage of US dollars in foreign markets. Companies that should have failed years ago need to go bust so we can move ahead. However, the last thing Central Banks and Politicians want is failures on their watch.
He outlines how the Target Two settlement system works between countries in Europe and the ECB. Italy has been using a lot of non-performing loans as collateral by dumping these into Target Two. These non-performing loans are creating huge imbalances across the EU and are not sustainable. The banks are bust in the Eurozone, and it’s only a matter of time. He is concerned about the possibility of Central Bank digital currencies and the potential loss of freedom.
Central Banks hide what inflation is by relying on some metrics they control. This way, they can inflate the money supply as they wish. They are just impoverishing everyone who is not in government.
He says, “We are on a hyperinflationary course, and there is no exit. No politician is strong enough to change this direction.”
At some point, they will be forced to back their currencies with gold, or they will become worthless. Any government that relies on printing money to finance it’s deficits will destroy it’s currency.
If you look at the whole range of commodities and raw materials, you will see that they have gone up along with most markets. We have inflation across most assets, and that is due to excessive money printing.
Lastly, he discusses the benefits of silver in a future monetary standard.
Talking Points From This Episode
- November Gold Price Action
- Coming EU Bank Crisis
- Historic Fiat Collapses
- Golds Purchasing Power
Time Stamp References:
0:00 – Intro
1:00 – Recent Price Action
13:50 – EU Banking Problems
20:47 – Defining Inflation
23:44 – Government Debt Trap
28:30 – A New Gold Standard?
31:10 – Historic Comparisons
41:05 – Golds Purchasing Power
49:06 – Fiat Implosion & Crypto
56:05 – The Role of Silver
Alasdair Macleod is Head of Research for GoldMoney. He is an educator and advocate for sound money thru demystifying finance and economics. His background includes being a stockbroker, banker, and economist.
Alasdair Macleod started his career as a stockbroker in 1970 on the London Stock Exchange. Within nine years, he had risen to become senior partner of his firm.
Subsequently, he held positions at director level in investment management and worked as a mutual fund manager. Mr. Macleod also worked at a bank in Guernsey as an executive director.
For most of his 40 years in the finance industry, he has been demystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.