(Miles Franklin Media) – The U.S. dollar is nearing a "sudden" phase of collapse after years of "slow erosion," said Nick Giambruno, Founder of The Financial Underground, urging individuals to prepare for a significant monetary system "reshuffle."
Speaking on the "Little By Little" show, Giambruno described to Andy Schectman, Founder and CEO of Miles Franklin Precious Metals, the systemic cracks he observes as he advocates for gold as a fundamental defense against financial instability.
Giambruno, who gained extensive financial insights while working with renowned investor and philosopher Doug Casey, emphasized that his awakening to the vulnerabilities of the global financial system came from understanding the true nature of money.
He recounts a "red pill" moment where he realized the common misconception that money must originate from the state, likening it to the Soviet-era belief that only the government could produce shoes.
"Money is a tool for sending value through time and space. That's it. It's nothing fancier than that, or more complicated than that," Giambruno stated, underscoring that this simple truth is largely unrecognized by the public.
The dollar's precipice and the debt crisis
While acknowledging that the dollar has been in a "slow erosion" since 1971, marked by an average annual money supply growth of about 7%, Giambruno believes the situation is now rapidly accelerating. He references Ernest Hemingway's saying, "gradually, then suddenly," to describe the dollar's trajectory.
The key differentiator now, according to Giambruno, is the debt crisis, where the interest expense on the national debt surpasses the defense budget. He identifies the treasury market as "the engine of the suddenly phase where it's really going to blow up."
Although he cannot predict the precise moment, he advises, "This train is headed off a cliff. You don't need to know exactly when it comes off the cliff. Just get off the train."
Gold: The essential "money" in times of crisis
For Giambruno, the principle behind holding gold far outweighs its fluctuating price. He views gold not merely as an investment, but as money itself.
Giambruno stressed that the need for gold is "particularly acute right now when the current paper fiat system is breaking down at an accelerating rate," noting that millions throughout history have been "victimized by inflation and even hyperinflation."
Could the U.S. national debt be the "engine" of a financial meltdown? Watch the video above for more insights!
