"The World is Functionally Bankrupt" Bob Moriarty
Bob Moriarty: The World is Functionally Bankrupt
Tom welcomes Robert Moriarty back to the program to discuss the latest in interesting times in finance. Bob explains where the money is really coming from to bail out the recent failures in the banking system, noting that the $200 billion figure has ballooned to $2 trillion.
The Federal Reserve has effectively committed to printing $2 trillion in a week, which is unprecedented.
Bob believes that the system can't be repaid mathematically, so something is bound to blow up, leading to inflation and deflation in response to the new debt.
He also covers the history of banking in the United States and the purpose of the Glass-Steagall Act, as well as the impact of geopolitical risk.
Bob expresses his dismay about the quality of the leadership in the US and his concern about the potential for increased conflict.
He concludes that there is no real limit to how much money can be spent on bailouts, and that sanctions and conflict risks seem to be increasing, without helping the situation.
Time Stamp References:
0:00 - Introduction
0:55 - All Debts Get Paid
4:28 - Causes & Bond Markets
8:23 - Flationary Effects?
15:17 - Saudis & Ukraine
18:05 - Sanctions & Seizures
21:00 - Alt. Competing Systems
23:30 - New Standards
25:44 - FDIC Bailout-ing
27:42 - Cash & Real Assets
29:42 - Shares & Margin
31:42 - Geopolitics & Conflict
37:07 - Collum Year-In-Review
41:21 - Gold Price & Miners
43:53 - Scary Times
46:30 - Wrap Up
Talking Points From This Episode
- Why the existing monetary system is destined for complete failure.
- The expansion of the BRICS+ countries and heightening geopolitical tensions.
- What possible actions will the Fed undertake to "fix things" in this environment.