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David Morgan: We are in Need of a Great Financial Reset

Tom welcomes back experienced silver investor David Morgan to the show. David discusses the excessive risk created by the use of margin in markets. Excessive leverage led to the 1929 crash and the great depression. Investors can be wiped out if they are not careful.

David is investigating the excess leverage in the crypto markets. He is concerned that Tether is carrying outsized risks regarding their supposed cash reserves. Diversification is important and you shouldn’t have all your eggs in one market.

David believes the Fed is always behind the curve on the market. All they can do is talk about their future actions but most of the talk is nearly meaningless. We could have extreme inflation in some assets while other sectors become deflationary. The next war could be cyber-related with severe economic consequences.

At some point, we will reach a psychological breaking point where everyone loses faith in government. When a large enough portion of the population reaches this tipping point then the selling begins. Markets today are extremely fragile but are backstopped by the Fed. They will continue to work until they don’t and monetary history indicates they won’t end well. “We just continue to put our finger in the dyke and believe we can hold it forever. Nothing lasts forever. Certainly a corrupt, obscene, elite-run monetary system beholden to the very few… cannot last.”

David discusses the logical way to restructure the system. It’s quite unlikely that this could happen as the political will does not exist. Their ‘solution’ is to create an even worse system of control.

Monetary history suggests that he who has the gold makes the rules. Today, that would put China in a very good position.

David discusses the paper in the futures markets and compares it to the retail market. Most commodity market terms state that they can force delivery in cash.

Lastly, David says, “Appreciate what you have because it’s the key to happiness.”

Time Stamp References:
0:00 – Introduction
0:30 – Leverage Risks
7:45 – Tether & Crypto
10:40 – Powell Announcement
14:00 – Cyber War?
16:00 – Debt Effectiveness
20:10 – MMT & Future Policy
23:30 – China & Gold
27:00 – Silver & Gold Demand
30:30 – Thesis Questioning
34:30 – Crypto & Metals?
36:00 – Measuring Wealth
37:30 – Sentiment & Metals
42:40 – Symposium Thoughts
47:30 – Concluding Thoughts

Talking Points From This Week’s Episode

  • Leverage and collapse risk in markets.
  • Why Fed talk is mostly meaningless.
  • Inflation and the psychological breaking point.
  • China’s gold and paper derivatives in commodity markets.

Guest Links:

David is a precious metals enthusiast with degrees in finance and engineering, and he originated The Morgan Report. This monthly report covers economic news, the global economy, and substantial capital gains by investing in the Resource Sector. The Model Portfolio includes top-tier, mid-tier, speculative, and special situations.

David considers himself a big-picture macroeconomist whose main job is education — educating people about honest money and the benefits of a sound financial system.

A dynamic, much-in-demand speaker worldwide, he has appeared on CNBC, Fox Business, and BNN in Canada. He has interviewed- The Wall Street Journal, Futures Magazine, Investing Rules, and numerous other publications.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report, and numerous other publications.

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