The United States was heading for “bankruptcy”; Gold will protect you, everything else will be “crushed”


The United States is heading for bankruptcy and economic decline, and the best way to protect your wealth is gold, said Yaron Brook, managing partner of BHZ Capital.

Brook is the best-selling author of several books, including “Free Market Revolution: How Ayn Rand’s Ideas Can End Big Government”. He is Chairman of the Board of Directors of the Ayn Rand Institute and host of the Yaron Brook Show.

Speaking to Kitco News editor-in-chief Michelle Makori on the sidelines of the Freedom Fest 2021 conference, Brook said the government is “destructive” and responsible for the economic problems the United States finds itself in.

“COVID has shown us that the American people are prepared to behave like sheep when the government dictates what it should and should not do. In addition, the government is ready to assume massive powers, ”he said. “We see the government systematically heading for bankruptcy. Who will pay this debt?

This high level of debt is almost impossible to repay now, Brook added.

“We’re approaching the debt levels we saw in WWII, but in WWII, right after the war, we ran into surpluses, so we paid everything off. No one will have a surplus today. Politically, it is impossible, ”he declared.

The most immediate consequence of high debt and government policies, including fiscal and monetary policies, is high inflation without growth, or stagflation. However, the economy will not reach hyperinflationary territory, Brook said.

“[Hyperinflation] is pretty unlikely because we know how to deal with inflation, we know how to stop it, it’s just very, very painful. I think we’re really going through a very long period of stagnation, maybe combined with inflation, maybe now. One thing we’re not going to see is significant economic growth, ”he said.

Brook added, “I just don’t see good things happening in the US economy. You have a massive bad investment, you have money flowing into the bad things.

The solution, according to Brook, is to reduce government intervention and abolish the Federal Reserve.

For the investor, the assets to avoid in a stagflation scenario are risky assets like stocks and long-term bonds. In fact, the bonds “will be crushed,” he said.

“You want to be in something like gold, because gold actually retains its value. It is as much an investment as it is a store of value, ”he said.

For Brook’s take on cryptocurrencies and the US dollar, watch the video above. Follow Michelle Makori on Twitter: @MichelleMakori (https://twitter.com/MichelleMakori).

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.



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