I once again had the chance to connect with news publisher and financial author John Rubino. John co-authored a spectacular book with GoldMoney’s James Turk, on the case for collapsing fiat currencies called, “The Coming Collapse of The Dollar & How To Profit From It“. The book has served as a bible for me on precious metals over the last ten years, and John was kind enough to lay out the investment thesis once again for our listeners.

During the interview, John shared some particularly shocking comments regarding how much further down the “rabbit hole” the western world has gone over the last ten years, especially from an authoritarian perspective.

The biggest takeaway according to John’s work is that, a crisis not seen by anyone in living memory is on it’s way. 

“We’ve never been this leveraged as a global society before,” John said, “and we’re creating so much new currency out there, that the extent of the changes [needed] to bring us back into balance are really horrendous. We’d have to have something that nobody in living memory has seen happen to the global financial system…It can go a lot of different ways, but all roads lead to some kind of a deflationary crash at some point in the future. We can destroy the value of our currencies in the short run and bring about some kind of an accelerated inflation or hyperinflation, or we can go straight to a deflationary crash…but the end result of a hyperinflation would also be a deflationary crash, when everybody just gives up on most forms of fiat currency.”

“Everybody suffers when something like what’s coming, comes”, he added. “There’s no real way out of it, only a choice of crises at this point”

When asked about the historical precedents for today’s crisis, and who tends to benefit or suffer the most, John said, “There are a lot of historical precedents for what’s happening today, but what we’re doing now is global, so it’s much more serious and much more extensive…France did it twice in the space of one century. They got the idea that paper money was the way to increase societal wealth, and they began creating huge amounts of new currency. That fell apart and the value of the paper currency collapsed. At one point they [even] made it a death-penalty offense to demand gold in payment for goods and services instead of the paper currency.”

“The people who owned land, gold and silver…ended up getting richer and richer…while people who put their faith in currencies…or promises of government programs…they tended to be impoverished. This is repeated over and over again throughout history.”

In regards to creeping authoritarian control in the United States, John commented that, “One of the interesting and terrifying aspects of large financial crises, is that you terrify people to the extent that they’re willing to give up a lot of their freedoms in order to make the crisis go away. So they end up putting a lot of power in the hands of  ’strong leaders’…Germany had a hyperinflation in the 1920′s, and they got Hitler a few years later…that’s been repeated over and over again throughout history.”

“[Americans] are giving up more and more of our constitutionally guaranteed freedoms, in return for promises to maintain stability…when this process really gets going…we’ll basically lose the bill of rights. The erosion is happening at an accelerated rate, and you can trace that back to our financial mismanagement.”

The greatest risk John said, was that of a government grab of both assets and people: “A financial crisis you can live through…but a financial crisis that leads to some kind of dictatorship…that’s a lot harder to deal with…you can’t protect your family from a government that can just confiscate wealth at will, and then create wars in other countries…and take your kids and send them off to fight, that’s the thing that worries me…is that the US is heading into something like that. As a father of two sons, it absolutely terrifies me.”

This was another powerful “must-listen” recording for serious investors and students of financial history.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to your desktop:

>>Interview with John Rubino (MP3)

To follow John’s news publication, visit: DollarCollapse.com

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Thanks,
Tekoa Da Silva
Bull Market Thinking