Fiat currencies have already failed spectacularly. The dollar is worth about 2 percent of what it was when the Federal Reserve began in 1913. The debasement picked up speed after Nixon cut the last vestige of the gold standard in 1971. Fiat currencies always fail, and for the same reasons. From QTR Fringe Finance via zerohedge.com:
Friend of Fringe Finance Lawrence Lepard released his most recent investor letter a few weeks ago with his updated take on the monetary miasma spreading across the globe.
Larry had joined me for several interviews last year and I believe him to truly be one of the muted voices that the investing community would be better off for considering. He’s the type of voice that gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.
Larry was kind enough to allow me to share his thoughts heading into 2022.
Before Russia invaded Ukraine, Larry predicted that a “crack up boom” could be on its way and also offered his take on gold, inflation, monetary policy, bitcoin, fiscal policy, the ongoing supply chain crunch, and much, much more. That analysis is included.
Now, the invasion of Ukraine has helped catalyze a number of his predicted scenarios.
Here are several Fringe Finance excerpts from Larry’s thoughts on the Ukraine invasion and the markets heading into 2022, from prior to the invasion.
Russia Invading Ukraine Has Caused A ‘Monetary Earthquake’
What just happened in the last two weeks is enormously important and misunderstood by many investors.
The Russian invasion of Ukraine and the corresponding Western sanctions and seizure of Russian FX reserves are nothing short of a monetary earthquake. The last comparable event was Nixon’s abandonment of the gold standard in 1971.
Russia, with the backing and support of China, just told the world that it is no longer going to sell its oil, gas and wheat for Western currencies which are programmed to debase.
The West in its response just said to all countries around the world: “If you have foreign exchange reserves, held in our system, they are no longer safe if we disagree with your politics.”