In this episode the listener gets one of the most amazing history lessons about the US Dollar.  Richard Duncan is a international best selling author and joins The Investor’s Podcast to talk about how China and the United States are in a tricky situation based on the events that have evolved since 1971.  Once the US decided to come off the gold standard and abandoned the Bretton Woods Agreement, the US dollar was no longer pegged to anything.  As a result, countries around the globe began to print enormous amounts of fiat currency in order to create trade surpluses that benefited their domestic interests.  This situation has evolved by driving up the prices of all US dollar denominated assets, but more importantly, it has caused US bond yields to drop to almost nothing.  This situation is potentially causing an ultimate bubble in asset prices around the world and could result and very large economic instability moving forward.

In this episode, you’ll learn:

  • Why and how bubbles are created by credit
  • How international central banks manipulate currencies
  • Why the US government benefits from the FED artificially keeping the interest rates low
  • Why the monetary system had changed fundamentally since the Bretton Woods agreement was broke
  • How the private investor should react in the new monetary system

Tweet your comments about this episode directly to Preston, Stig, or Richard Duncan using #TIPMoney.

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Books and Resources Mentioned in this Podcast

Richard Duncan’s course on TIPacademy about How Macro Really Works

Richard Duncan’s book, The New Depression – Read reviews of this book

Richard Duncan’s book, The Dollar Crisis – Read reviews of this book

Richard Duncan’s site RichardDuncanEconomics.com

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2018-04-22T10:41:03+00:00

5 Comments

  1. Jesse Sewell
    Jesse Sewell August 1, 2016 at 3:49 pm - Reply

    Fantastic talk. It is interesting to listen to your podcast and see your evolution of though progress from purely ‘value investing’ to more of a defensive, pre-bubble bursting’ standpoint. It is a distinct progression of thought as you are both clearly listening to some of the best minds in the investing community. I personally find Stan Druckenmiller’s warnings to be prescient and very disconcerting. I think his reputation has forced many others to reevaluate their long held optimism. Thanks so much for your podcast. It is a giant pearl among a sea of noise.

  2. Jay Gupchup
    Jay Gupchup September 10, 2016 at 5:34 pm - Reply

    Fantastic show – Great detail and history on the dyamics of quantitative easing and its impact. I learned a lot from this show and have a much clearer framework to think about the relationships. Thanks Preston, Stig and Richard

    • Stig
      Stig September 19, 2016 at 4:41 am - Reply

      Thanks Jay! I learnt a lot from Richard too!

      -Stig

  3. Michael
    Michael November 11, 2016 at 11:14 am - Reply

    My question is, while the American consumers were buying a lot from China and Japan, creating a huge trade surplus, what kept funding their purchases?

    Eventually those consumers should run out of money if their money keeps going one way out of their country.

  4. Jiten
    Jiten January 14, 2017 at 9:48 pm - Reply

    Great show, what was the name of the investor that Richard mentioned about who is close to Buffet?

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