How Coronavirus Exposed the "Shaky Foundation" (w/ Michael Krieger)

TL;DR

The global economy is built on a shaky foundation, with financialization and the dominance of the US dollar causing fragility and potential collapse.

Transcript

DREW BESSETTE: We have Michael Krieger of The Liberty Blitzkrieg with us today. Welcome, Michael. Thank you thank you for joining us. MICHAEL KRIEGER: Hey, Drew. It's very exciting to be on with you. I'm very-- very much looking forward to our conversation. DREW BESSETTE: So my first question that I like to ask all of our guests-- it's a little fun... Read More

Key Insights

• 🌐 The global economy is built on a fragile foundation due to financialization and the dominance of the US dollar.
• 🪡 The response to the 2008 financial crisis and the current coronavirus pandemic has revealed the inadequacies of public institutions and the need for a complete restructuring.
• 🌐 The decline of US hegemony and the potential for a multipolar world is a consequence of the current global instability.
• 😐 The need for a new global reserve currency that is politically neutral and not controlled by a single country is essential for a more stable and equitable system.

Questions & Answers

Q: How did the 2008 financial crisis impact the global economy?

The response to the crisis demonstrated that the system is rigged and that elite criminals were not held accountable. This led to a decade of looting and a lack of trust in the leadership and institutions.

Q: Why have public institutions been inadequate in their response to the coronavirus pandemic?

Institutions are ill-equipped to handle a crisis of this magnitude, and their lack of ability to make necessary changes is due to the fragility and weaknesses built into the system.

Q: How has the coronavirus pandemic exposed the weaknesses of the global financial system?

The pandemic has created liquidity tightening and credit struggles, impacting spending and exposing the fragility of a system built on low interest rates. It could potentially lead to the reversal of a 40-year bond and interest rate bull market.

Q: Could the coronavirus pandemic lead to a decline in the dominance of the US dollar as the global reserve currency?

The pandemic could accelerate the decline of US hegemony and the need for a new global reserve currency. It presents an opportunity for countries like China and Russia to weaken the US position globally.

Summary & Key Takeaways

• Michael Krieger, former oil analyst and founder of Liberty Blitzkrieg, discusses his career, the 2008 financial crisis, and the current state of the global economy.

• The financial empire built on the US dollar and financialization has created a fragile system that is controlled by a few elite individuals.

• The response to the coronavirus pandemic has highlighted the inadequacies of public institutions and the need for a complete change in the way society is structured.

• The coronavirus could be a catalyst for the decline of US hegemony and the beginning of a multipolar world, leading to the need for a new global reserve currency.