The Collapse of FERN (Federal Reserve Note) | The Gold Standard 2428

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In this compelling episode of The Gold Standard, hostess Jennifer Horn is joined by Ken Russo, SVP of the Midas Gold Group, to discuss the sobering state of our monetary system. Ken opens the discussion by highlighting a critical issue: we allow the Federal Reserve and the central bank of the United States to print money. This money is then borrowed by the government, and interest is paid on it. Ken questions, does this sound like a sustainable system? Is our current monetary framework strong enough to survive in the long run?

This monetary crisis, largely influenced by the policies of the Federal Reserve, has been building up for some time. Are we on the brink of a collapse of the Federal Reserve Note? What could be the far-reaching consequences of such a collapse?

The Presidential Debate: Ignoring the Elephant in the Room

In the recent presidential debate, viewers were left disappointed as neither candidate addressed the elephant in the room: our national deficit. Amidst the exchange of rhetoric and policy proposals, the looming debt crisis was conspicuously absent from the discussion. This glaring omission is troubling, given the magnitude of the issue. Neither candidate acknowledged the growing debt problem that not only the United States but also the rest of the world faces. The silence on this matter is particularly striking, considering the staggering amounts owed to foreign countries, with Japan being the largest creditor. Our economic stability is intertwined with these international obligations, yet the candidates bypassed this critical topic.

Unfunded Liabilities

Liabilities such as Social Security funds, Medicare, Medicaid, and veteran benefits were also unmentioned. These are not just numbers on a balance sheet; they represent real obligations that must be fulfilled. The funding for these essential programs is increasingly based on printing more money—money created out of thin air and backed by nothing but confidence in our government. This unsustainable approach raises serious questions about the long-term viability of our financial system.

As Ken points out, the crisis we face is not just about the numbers but the foundation of our monetary system. The lack of attention to these pressing issues during the debate underscores the urgent need for a more robust and transparent discussion on managing our nation’s finances. This episode of The Gold Standard aims to fill that gap by bringing these critical issues to the forefront, offering insights and potential solutions to a problem that cannot be ignored.

The debt problem is not limited to the United States; it is a global issue, with nations like Japan holding significant portions of our debt. Yet, neither candidate addressed these critical obligations nor the unfunded liabilities such as Social Security, Medicare, Medicaid, and veteran’s benefits. These commitments are increasingly being financed by printing more money—currency backed by faith in the government’s ability to manage it.

A Broken System

Ken underscores that the real crisis is not just the numbers but the foundation of our monetary system. The Federal Reserve’s approach—printing excessive amounts of money and manipulating interest rates—fails to address the root cause of inflation: the devaluation of the dollar. This flawed economic model assumes that slowing economic activity is the key to combating inflation, ignoring the importance of defending the dollar’s integrity. The lack of a robust discussion on these issues during the debate highlights the urgent need to return to a more stable monetary policy, such as the gold standard, which may become necessary sooner than most anticipate. The impending collapse of the Federal Reserve Note could have far-reaching consequences, and we must address these issues head-on to ensure a sustainable economic future.

GOING FULL FIAT

By the late 1960s, dwindling US gold reserves led to the 1971 decision to take the dollar off the gold standard, enabling the government to incur unlimited debt, now at $35 trillion, excluding unfunded liabilities like Medicare, Social Security, and veterans’ benefits. This shift to fiat currency has also strained state and local governments, now heavily reliant on federal funds from acts like the CARES Act and the Infrastructure Investment and Jobs Act. Historically, bipartisan reforms in the 1990s addressed regulatory burdens, but today’s federal government is adept at maintaining control, with the Federal Register set to exceed 100,000 pages in 2024. This dependency and regulatory complexity underscore the urgent need for fiscal responsibility and a return to sustainable monetary policies.
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