In a recent discussion between financial expert Mario Innecco and WTF Finance host Anthony Fatseas, the pair explored the potential for a deflationary collapse or hyperinflation as M2 money supply decreases and central banks launch their quantitative easing programs. With the uncertain economic landscape, both speakers emphasized the importance of physical gold and silver as safe investments outside of the financial system. They also discussed the risks associated with investment banking and the fraudulent nature of fractional reserve banking.
The conversation touched on several key points, including recent bank failures in the US and the potential for further challenges in both the US and UK banking systems. In light of these risks, Mario advocated for holding physical gold and silver outside of the financial system and urged caution when investing heavily in bonds or equities.
A focal point of the discussion was the controversial practice of fractional reserve banking, which the speakers believe to be fraudulent. Mario and Anthony expressed doubt about the political will to move away from this system, noting that it currently benefits bankers and enables deficit spending.
The speakers also examined the possible outcomes of the current economic situation: hyperinflation due to increased money printing and loss of confidence in currency, or mass deflation as a result of the system imploding if debt doesn’t continue to grow. They highlighted the risks posed by recent dips in M1 and M2 money supply caused by the Federal Reserve raising interest rates.
As countries seek to create their own systems outside of the Petrodollar system, Mario and Anthony explained that this could lead to more inflation, further emphasizing the need for diversification into other assets such as gold and silver. They also noted that the US dollar’s diminishing demand would decrease foreign demand for treasuries and prevent interest rates from returning to zero.
Mario, from Maneco64, concluded the discussion by advising that real, tangible assets like gold and silver will hold their value during hyperinflation. He stressed the importance of keeping track of the exchange rate of gold and silver and being cautious of advice given by central bankers and politicians, who may have ulterior motives. The speakers agreed that commodities are likely to perform well in the future, offering investors a potential safe haven amidst economic uncertainty.
