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Nick Giambruno: The Fed is Not Going to Save the Day

Tom welcomes back Nick Giambruno. Nick founded The Financial Underground and is Editor-in-Chief of the Contra Speculator.

Nick discusses the coming shift in the world of reserve currencies. Powell’s recent statements indicate there may be room for more than one reserve currency. There are several possible outcomes regarding global currencies. Eventually, countries will be forced through competition to move towards using a gold backed system.

Nick believes that CBDC systems would almost certainly be worse than our current system. They would likely be restrictive and allow those in charge to eliminate privacy and micromanage their use in dangerous ways. Such a system seems doomed to failure.

Money only needs to act as a store and allow for the exchange of value. So, fiat, gold, silver, crypto, or even barter might be workarounds under a CBDC system. Governments aren’t more powerful than the free market and the voluntary choices of billions of people. Free parallel markets will emerge out of necessity.

Nick explains how Bitcoin differs from the other coins. Bitcoin is not controlled by any one group and is therefore it’s very hard to change the underlying rules around it. This is a good thing, as Bitcoin is the only one that can disrupt central banks.

The Fed has largely lost its credibility, and they are manipulating public opinion. Just a look at their discussions about inflation. They should have no credibility because they deserve none.

Since the Covid crisis occurred, the money supply has increased by forty percent. If your wealth hasn’t increased by forty percent since March 2020 then you’re losing ground. We are reaching an endgame that won’t take long to play out. There is a lot of risk in this environment because governments have a tendency to flip the game board in these situations.

He believes the pipeline sabotage will cause huge problems for Europe this winter. Plenty of things will come to a head by next year.

Lastly, he says, “Hard assets are useful because they can’t be easily produced and therefore are the best for preserving wealth. Don’t put your savings into unbacked liabilities. Be prepared because the coming months will be wild.”

Time Stamp References:
0:00 – Introduction
0:38 – Dollar Replacements
8:15 – Gold Standard Benefits
9:22 – Digital Currencies
11:06 – Parallel Alternatives
16:16 – A Debt Jubilee?
22:00 – Education & Inflation
24:24 – Fed Credibility
27:27 – Does Debt Matter?
29:28 – Inflation Today
30:40 – Optimism & Control
34:20 – Pipeline Sabotage
36:15 – Preserving Wealth
39:37 – Wrap Up

Talking Points From This Episode

  • The future of reserve currencies globally.
  • The functions of money and why CBDCs will fail.
  • Why the Fed has lost all credibility and how to preserve your wealth.

Guest Links:

Nick Giambruno is a renowned speculator and international investor. He’s the Founder of The Financial Underground and Editor-in-Chief of its premium investment research publication Contra Speculator.

Nick travels the world searching for lucrative investment opportunities in overlooked markets.

Nick specializes in identifying Big Picture geopolitical and economic trends ahead of the crowd. His approach to investing also focuses on profiting from distortions in the market. This includes identifying unfounded pessimism in beaten-up industries, which creates opportunities for enormous gains.

He writes about geopolitics, value investing in crisis markets, Bitcoin, international banking, second passports, international diversification, and surviving a financial collapse, among other topics.

Nick has traveled to over 60 countries and lived in six of them. He formerly worked in the Middle East with a Dubai-based investment bank.

He has been featured in:

The Economist, Forbes, Zero Hedge, Seeking Alpha, The Herald of Zimbabwe, The Keiser Report, MoneyWeek, Casey Research, International Man, The Crux, Gold Newsletter, The Jet Setter Show, Lew, The Tom Woods Show, International Living Magazine, Wall St for Main St, Emerging and Frontier Markets Investing,, The Power & Market Report, Mountain Vision, Ron Paul Liberty Report, among others.

Nick is a frequent speaker at investment conferences around the world.

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