Keith Weiner: The Fedcoin is Coming
Tom welcomes a new guest, Keith Weiner, to the show to discuss the monetary forces behind inflation and debt.
There is no way to extinguish debt in our current system, so the total debt grows, and due to interest, it tends to grow exponentially. In the past, the Fed loosened regulations and lowered rates, but it’s like they are pushing on a string. There is a lot of talk about a Fed coin. If you have to force credit into the economy and banks are unwilling or unable, the Fed has to become the monetary institution.
Interest rates have moved higher and are still below the beginning of last year. We’ve had steady downward moves with interest rates over the past several decades with occasional periods of correction. Keith thinks the forces driving rates down will persist. The current demand for credit is lethargic as businesses have been hit hard. He argues the need for borrowing is occurring on the downticks in interest rates.
He explains that hyperinflation will only come after the Fed becomes insolvent. This could happen if interest rates were to rise and the Fed ended up with a negative cash-flow. When they become insolvent, this will be the Zimbabwe moment.
Keith argues that bitcoin is not money because it can be forked and thus essentially copied. There is something unsound about this aspect of crypto. Bitcoin is difficult to borrow against because the price is moving higher. He argues that bitcoin can’t be used to finance any productive enterprise.
Time Stamp References:
0:00 – Introduction
0:35 – Inflation Vs. Deflation
3:08 – Inflations “Twin”
4:00 – Rates
8:35 – CPI & Dishonesty
11:25 – Interest Rates & Inflation
16:17 – Fed Assets & Hyperinflation
19:47 – Banks, Fed Coin, & Stimulus
22:28 – Monetary Policies
24:47 – Metals & Bank Arbitrage
31:47 – PM Suppression
33:44 – Timing & Price Drops
36:33 – Gold Short Positions
38:18 – Main Gold Driver?
42:25 – Bitcoin as Money?
47:40 – Wrap Up
Talking Points From This Episode
- Inflation Forces Monetary vs. Non-Monetary.
- The debt-based system and debt growth.
- CPI & dishonesty in economics.
- Why bitcoin is not money.
Keith Weiner earned his Ph.D. from the (non-accredited) New Austrian School of Economics. He speaks worldwide about the failing dollar system and the need to rediscover the gold standard. To this end, He founded the Gold Standard Institute USA and Monetary Metals.
The former is a nonprofit focused on education and outreach. The latter makes it profitable to invest in the gold standard by paying gold interest on gold. Previously, Keith founded DiamondWare, a voice technology company that he sold to Nortel Networks in 2008.