Dear RobbieTheFire and fans,
Our CEO Keith Weiner talked about so many interesting and counterintuitive topics with Rob on Run Your Mouth that we thought it would be nice to give viewers a breakdown of their conversion and link to the articles and research covered.
First, zombie corporations. Zombie corporations are essentially public companies that don’t make enough in profits to pay back the interest expense on their debt. They aren’t even trying to pay back the principal.
Zombies are the walking dead. The only thing that keeps them alive is a falling interest rate perpetuated by the Federal Reserve. This allows Zombies to stay afloat and refinance their debt at ever lower rates.
Read our article on zombies here.
Falling Interest Rates
Which leads us to #2: Why are falling interest rates so important? Keith has written a metric ton on interest rates which you can read on our research page here. But falling interest rates have a very destructive effect, though it is often hidden from the public eye.
They actually make consumer prices fall, asset and stock prices rise and GDP numbers increase. In other words, a bull market. But bull markets are good, right? Not so fast! The falling interest rate actually creates an incentive to consume capital. It’s like a farmer eating the seed corn. He consumes his future productivity now. What will he do next year? Or the year after? If he makes it that long…
So, wait a second, you’re saying that the easy money policy of the Fed makes prices go down? YES! If the credit goes to producers of products instead of directly to consumers (it does) then businesses can expand production and actually lower consumer costs. So the Fed can lower prices!!
Read about destruction of capital and the falling interest rate here.
#3: The dollar. Yes, it is the dirtiest shirt in the laundry. But that doesn’t mean that some other currency will take its place. And although we want a gold standard it is not as simple as Russia or China declaring the Yuan is now pegged to gold.
Read more about the dollar vs foreign currencies here.
#4 Monetary Metals gold investments. So how does Monetary Metals gold leasing work? We give gold-using businesses a productive and hedge free financing solution. Those companies pay interest on the gold they use. That interest gets distributed to investors every month so that their total ounces grow over time, month by month, year by year.
Trust us, watching your ounces grow every month while you don’t lift a finger is a lot of fun! And you’re supporting a productive business. And you’re helping the world get one step closer to an honest money standard, denominated in and paid in gold. If getting out of the dollar system and getting back to sound money sounds good to you then see how you can be part of the solution.
Visit our website at monetary-metals.com to learn more
Let us know what you want Rob and Keith to cover next in the comments.
And if you like what you heard make sure to check out our YouTube channel and follow us for more great content you won’t get anywhere else! Arrivederci!
Additional Resources for Earning Interest on Gold
If you’d like to learn more about how to earn interest on gold with Monetary Metals, check out the following resources:
In this paper we look at how conventional gold holdings stack up to Monetary Metals Investments, which offer a Yield on Gold, Paid in Gold®. We compare retail coins, vault storage, the popular ETF – GLD, and mining stocks against Monetary Metals’ True Gold Leases.
Adding gold to a diversified portfolio of assets reduces volatility and increases returns. But how much and what about the ongoing costs? What changes when gold pays a yield? This paper answers those questions using data going back to 1972.