0:00 - Introduction0:35 - Monetary Climate2:56 - Five Pillars7:40 - Race to Deflate13:20 - Inflation Signals17:40 - Central Banks Purpose20:49 - Digital Currencies27:23 - YCC & Concerns39:21 - Everything Bubble42:43 - Resource Equities46:15 - Confiscation Risk52:04 - Wrap Up
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Ronald returns to the program to discuss Incrementum's annual "In Gold we Trust" report. This year's theme and title is "Monetary Climate Change," and the reports cover shows the Statue of Liberty drowning in debt. They wanted to convey the lack of sustainability of the US monetary system.
We are seeing sovereign debts moving much higher and the strengthening of big government. Fiscal responsibility no longer exists in this environment. Ronald cautions that trust that takes decades to build can be lost very quickly. We see a merger of fiscal and monetary policy, which is increasingly dangerous as the independence of central banks is ending.
Inflation is becoming structural, mainstream, and will likely not be transitory. Inflationary forces are now stronger than the deflationary forces of the past. Monetary velocity will begin to increase, and "Asian countries are starting to export their inflation rather than deflation." In addition, the US dollar is showing signs of structural weakness over the medium to long term. There is also cooling of relations between the US, China, and other nations. Investors should pay closer attention to their government's policies on spending.
He compares and contrasts Central Bank Digital Currencies with decentralized cryptocurrencies. There are concerns they will use these new digital currencies to control the flow of funds. Resulting in more centralization, regulation, and potential loss of freedoms.
Ronald discusses the current debt to GDP levels and contrasts those with the debts after World War II. Government's will have to use yield curve controls to place a cap on debt payments. This results in low rates indefinitely and has adverse effects on the overall economy. Over the long term, the place to be will be commodities and specifically gold.
Talking Points From This Week's Episode- Changing climate of monetary and fiscal policies.- Lack of fiscal policy and confidence risks with the dollar.- Inflation is becoming a structural problem.- Central Bank Digital Currencies compared with Cryptocurrencies
Ronald-Peter St??ferle is Managing Partner and Fund manager at Incrementum AG, based in the Principality of Liechtenstein. The company focusses on asset management and wealth management and is one hundred percent owned by its partners. Ronald manages a fund that invests based on the principles of the Austrian School of Economics.