As we move further into 2025, many are wondering if we are on the verge of a global monetary reset. Global economies across the globe, from Germany to France, the US, and Canada, are seeing their economies stumble as risk assets tumble and gold breaks above $3,000 per ounce.
To unpack all of this, David Morgan joins Aaron on the podcast to dissect why a potential monetary reset is gaining momentum. This reset, if it were to happen, could involve massive changes in global financial infrastructure and the adoption of new economic systems. Such a reset could lead to significant economic disarray as it may require broad acceptance of a new digital currency system amidst geopolitical tensions and skepticism from the public. The first sign could be an end to the global reserve currency system or a more sustained widespread abandonment of the U.S. Dollar.
Insights from David Morgan, Precious Metals Expert
David Morgan, a seasoned expert in currency and precious metals, highlights the increasing importance of gold in the context of potential monetary shifts. He notes that central banks have been accumulating gold, indicating preparations for possible large-scale economic changes. This trend suggests a growing lack of trust in traditional fiat currencies and a shift towards assets with intrinsic value, like gold.
The Rise of Central Bank Digital Currencies (CBDCs)
In response to the evolving financial landscape, many central banks are actively developing their own digital currencies. These CBDCs are designed to decrease dependency on cash, enhance financial inclusion, and provide more direct control over monetary policies. However, they also raise concerns regarding privacy and the potential for increased governmental oversight of personal financial transactions. Morgan, a staunch support of freedom and privacy is against CBDCs and continues to use cash freely.
The Tokenization of Everything
“Let’s tokenize everything that we the U.S.A. own, all the parks, all the rocks in the parks, all the minerals in the parks, all the blades of grass in the parks, all the trees, and the animals, let’s tokenize them, let’s not forget the lakes and the rivers, and if we do that, now you’re looking at where $36 trillion, looks like peanuts. Because now you have an asset backing the tokenization of the real world that can be used as collateral to back up the debt. You could keep the game going a lot longer.”
So, Morgan argues this could be one way out of our impending debt crisis. The financial world continues to witness a significant movement towards the tokenization of assets. This process involves converting rights to an asset into a digital token on a blockchain. While this can make transactions quicker and reduce reliance on traditional banking systems, it comes with challenges such as regulatory issues and high volatility, especially in crypto markets.
Why Aren’t People Buying Gold and Silver?
Despite the advantages, the uptake of gold and silver has not seen a significant increase as expected. While the price is soaring most in the West continue to ignore the asset class with little to no allocation. This could be attributed to a variety of factors including market volatility and a generational shift in investment preferences, where younger investors are looking more towards digital assets and less towards traditional safe havens like gold. As the markets continue to gyrate, Trump and the Republicans are hoping for lower interest rates to refinance up to $7 trillion in the coming months.
As the global economy continues to navigate these complex financial shifts, investors should heed the warning of individuals like David Morgan. The movement towards hard assets, asset tokenization, and digital currencies is indicative of a system in decline. A global monetary reset would usher in a broader shift in global financial practices that could redefine how economies operate in the near future.
