Are you familiar with the GoldNewsletter podcast? They boast over 200 episodes on the topics of investment, economics, and geopolitics.
This week, hosts Fergus Hodgson & Brien Lundin interviewed Monetary Metals’ CEO Keith Weiner on the topic of falling interest rates and how cheap borrowing comes at the expense of capital productivity.
1 response to “The Problem with Record-Low Interest Rates”
@8:30 [reset possible?] “The government is not the marginal borrower.” “Everyone else will default first.”
“As long as everyone owes dollars, … the dollar remains a closed-loop system,… if you opt-out by buying gold, the seller has opted-in.” [Or is in the final stages of consuming his capital.] There is no way that the system itself /can/ closeout its dollar position except via permanent [capital] backwardation.
Defaltion=>margins are compressing; Inflation=>margins are expanding (until the producers can no longer refinance).
Keith is loaded with huge insights–they may take years to sink in, but do the intellectual work to make that happen!
Monetary Metals® operates the Gold Yield Marketplace™, a financial services platform enabling investors to earn a Yield on Gold, Paid in Gold® while providing gold-based financing to precious metals businesses worldwide. Unlike traditional gold companies that buy or sell gold for dollar gains, Monetary Metals unlocks the productivity of gold by matching investors who hold precious metals with qualified businesses—including mints, refiners, jewelry manufacturers, and miners—that use gold productively. Through Gold Leases and Gold Bonds, investors earn interest paid in physical ounces rather than fiat currency, allowing their gold holdings to compound over time with no storage fees.
Monetary Metals | Unlocking the productivity of gold
2020-09-22
This interview between Kerry Stevenson of the GAIC & Monetary Metals CEO Keith Weiner is the followup to a recent post, The Dollar Cancer and the Gold Cure. Stevenson is the Founder of the Gold and Alternative Investments Conference coming up in November. This time around, they cover the following topics: Why consuming capital is finite
@8:30 [reset possible?] “The government is not the marginal borrower.” “Everyone else will default first.”
“As long as everyone owes dollars, … the dollar remains a closed-loop system,… if you opt-out by buying gold, the seller has opted-in.” [Or is in the final stages of consuming his capital.] There is no way that the system itself /can/ closeout its dollar position except via permanent [capital] backwardation.
Defaltion=>margins are compressing; Inflation=>margins are expanding (until the producers can no longer refinance).
Keith is loaded with huge insights–they may take years to sink in, but do the intellectual work to make that happen!