Tom of Palisades Gold Radio recently welcomed back Keith Weiner, the president of the Gold Standard Institute USA, CEO of Monetary Metals, and a PhD economist. Their conversation explored various thought-provoking topics, including the fundamental price of gold and silver, the philosophical concept of anti-concepts, and the consequences of long-term trends in debt and falling interest rates.
One of the key points discussed was the current fundamental price of gold and silver. According to Monetary Metals’ model, the fundamental price of both precious metals is currently above the market rate. This dynamic price reflects the tension between physical markets and futures markets, with speculators in the latter holding significant leverage that can impact short-term prices. Although the accuracy of this model is debated, the indication of prices being significantly above market price suggests a potential upward trend for both gold and silver.
Weiner also delved into the philosophical concept of anti-concepts, inspired by Ayn Rand’s ideas about proper concept formation. He used the term ‘money’ as an example of an anti-concept, arguing that defining money as anything other than gold or a promise to pay has led to misunderstandings and mismanagement of monetary systems. By treating ‘money’ as an anti-concept, people fail to grasp its true meaning and significance, leading to the devaluation and m----------n of currencies.
The conversation further explored the consequences of long-term trends in debt and falling interest rates. Weiner explained how these trends lead to capital consumption through various means, including negative interest rates in countries like Germany, Netherlands, UK, and Japan. In such environments, enterprises that destroy investor capital are incentivized. In the United States, falling interest rates have led to an illusion of returns on investment as one party’s wealth is converted into another’s income. This ‘prodigal economy’ fuels consumption of capital, with Bitcoin and real estate being prime examples.
Weiner also discussed differences between capital consumption, inflation, deflation, and stagflation. He argued that monetary increases can have different causes, leading to varying effects. According to Weiner, inflation is the counterfeiting or fraudulent issuance of debt or credit, resulting in inevitable deflation through losses or cram-downs.
Lastly, Weiner explained Monetary Metals’ unique approach to making metals useful again by providing returns for companies. By offering gold-based financing solutions, Monetary Metals aims to restore the inherent value of precious metals in modern monetary systems, ultimately contributing to a more stable and sustainable economic future.
Overall, Weiner’s insights offer valuable food for thought for those interested in the fundamental principles of economics, monetary systems, and the role of precious metals in today’s world. By examining anti-concepts, capital consumption, and various monetary trends, Weiner provides a nuanced understanding of the complex interplay between these factors and their impact on the global economy.
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