Keith Weiner: The Long Death Spiral of the Dollar
Tom welcomes back Keith Weiner, the President & Founder of Gold Standard Institute USA and CEO of Monetary Metals, to the show. Keith discusses his Guide to the Gold Market and what investors really need to know. He explains that gold tracks the loss in value of the dollar, which is designed to lose purchasing power over time; and, how gold acts as a benchmark for the rest of the economic system. He also argues that desperate measures like tariffs end up creating more problems than they solve, and that the 2008 financial crisis was caused by a vicious spiral of markdowns on bonds.
Keith explains how the dollar is a relationship of being owed and how the incentives to continue this behavior remain compelling. He believes that the only thing that can replace the dollar is gold, but currently there is little interest. He argues that Comex inventory movements have little impact on the price and that historical analogies for gold can be useful because history does tend to rhyme. He also argues that the utility of gold at the margin does not diminish when supply increases; it acts as an objective measuring stick for economic value.
Time Stamp References:
0:00 – Introduction
0:37 – Gold Misconceptions
7:36 – Tariffs & Incentives
12:00 – Gold & Interest Rates
19:25 – Banks & Bonds
25:50 – Imminent Dollar Death?
31:00 – Dollar Demand & Trust
39:44 – Commodity Currencies
44:20 – Price Vs. Production
47:10 – Silver & Mint Demand
49:46 – Manipulation
52:25 – Comex Inventory Flows
54:13 – Past Cycles & Today
56:54 – Gold & Counterparties
1:00:28 – Measuring Wealth
1:01:18 – Wrap Up
Talking Points From This Episode
- Gold tracks the loss in value of the dollar, which is designed to lose purchasing power over time.
- The only thing that can replace the dollar is gold, but currently there is little interest.
- The utility of gold is it’s ability to act as an objective measuring stick for economic value.
Field Guide: https://monetary-metals.com/how-not-to-think-about-gold-lp/
Personal Blog: https://keithweinereconomics.com/
Keith Weiner is the founder and CEO of Monetary Metals, an investment firm that is unlocking the productivity of gold. Most people regard gold as a dry asset, to lock away in a vault, incurring storage fees. Many are waiting for it to rise in price.
Keith and Monetary Metals are on a mission to change this.
Gold should once again serve to finance productive enterprises and extinguish debts. The dollar performs one of these functions, but not the other. Bitcoin cannot finance anything, as no business can borrow a currency that’s expected to go up a hundred times. Gold is the one thing that fills both roles, par excellence.
Keith writes and speaks extensively, based on his unique views of gold, the dollar, credit, the bond market, and interest rates. When he is not working on the business, he is developing his theory of monetary science, and an arbitrage theory of economics.
Keith also serves as founder and President of the Gold Standard Institute USA. His work was instrumental in the passing of gold legal tender laws in the state of Arizona in 2017. He has met with central bankers, legislators, and government officials around the world.