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Today’s episode is truly something special. We’re joined by Dr. Daniel 
Lacalle, a world-renowned economist, bestselling author, and former hedge fund manager with deep experience at top institutions like Citadel and Pimco. Known for his sharp macroeconomic insights, Daniel has spent decades analyzing energy, finance, and the intricate world of asset management. His books, including “Life in the Financial Markets” and “Escape from the Central Bank Trap,” have become key resources for investors seeking to understand the forces shaping the global economy.
Daniel brings an incredible depth of knowledge to our conversation, breaking down what’s really happening behind the scenes with central banks, inflation, government debt, and the future of money. He explores why central banks have strayed from their original mission, and what this means for your wealth and investment choices. Daniel explains his unique perspective on why cash and sovereign debt—often perceived as “safe”—are now some of the riskiest assets in today’s environment. He offers clear, practical strategies on how to navigate uncertainty, protect your purchasing power, and invest wisely even as traditional financial assumptions are being upended.
Daniel’s grounded, honest, and pragmatic approach helps cut through fear and confusion, empowering you to make smarter decisions regardless of the economic cycle.
In This Episode
- What’s really driving persistent inflation and why “soft landings” are a myth
- The real role of central banks today—and the hidden risks few talk about
- Why gold, crypto, and hard assets are gaining ground against fiat currencies
- Smart strategies for protecting and growing your wealth in an era of financial repression
So what you basically have to do is think that the highest risk asset is the one that the market is telling you is the lowest risk asset. The highest risk asset is cash and sovereign debt.
Welcome to the Wealth Strategy Secrets of the Ultra Wealthy podcast, where we help entrepreneurs like you exponentially build wealth through passive income to live a life of freedom and prosperity. Are you tired of paying too much in taxes, gambling your future on the stock market, and want to learn about hidden strategies for making your money work for you?
And now, your host, Dave Wolcott—serial entrepreneur and author of the bestselling book, The Holistic Wealth Strategy.
Hey everyone. Welcome back to Wealth Strategy Secrets of the Ultra Wealthy, the show where we uncover the truth behind building and preserving wealth beyond Wall Street’s playbook.
Today’s guest is someone I’ve been looking forward to having on the show for a long time—Dr. Daniel Layi. Daniel is a world-renowned economist, bestselling author, former hedge fund manager, and one of the sharpest macro minds on the planet.
With decades of experience across energy, finance, and asset management—including time at Citadel and Pimco—he’s become a leading voice on central bank policy, inflation, and the fate of fiat currencies.
In this episode, Daniel breaks down why central banks have abandoned their mission and what that means for your portfolio, the truth behind persistent inflation and the myth of soft landings, and what the rise of gold, crypto, and hard assets says about global confidence in fiat.
Why we’re heading toward long-term monetary debasement and not a sudden collapse. And finally, how to protect your wealth in a world of financial repression and slow erosion of purchasing power.
If you’re trying to make sense of all the noise around interest rates, inflation, and sovereign debt, this episode will bring clarity and actionable insight. And if this conversation resonates with you, don’t forget to subscribe and share the show. Let’s help more investors break free from conventional thinking and build real, resilient wealth.
And now, on to today’s show. Daniel, welcome to the show.
Thank you so much, Dave. It’s a great pleasure to be here.
Yeah, it’s an honor to have you on the show, and I’m really looking forward to today’s discussion. I think the timing literally couldn’t be better to try to help investors decipher what is going on in the world today. Right between central banks, interest rates, and inflation—it constantly seems to be all over the place, with different points of view and everything.
So I’m really looking forward to helping you kind of demystify this puzzle and letting the everyday investor just understand how we can position ourselves better in this type of uncertainty and volatility that’s in the marketplace.
But before we jump into the details, Daniel, tell us—how did your career start? How did you get into becoming an economist, an author, central bank theory, and all of these interesting topics?
Oh, thank you so much. Well, I started in the oil industry right off the bat when I finished my career in university. I didn’t do a master’s degree after university—I did it while I was working, both the master’s and the PhD.
So I started in the oil industry. I started in everything that had to do with money markets, commercial paper, and international finance, then went on to be in charge of Africa and the Middle East—everything that led to all those incredible years of exploration and production boom all over the world.
And after that, in strategy, investor relations, in the presidential area. After that, I was offered an opportunity to go to the UK to an investment bank and work in investment banking.
I decided to take it with the idea of going into a hedge fund. And that actually happened faster than I expected. In about a year and change, I was working at Citadel. So I was in charge as a portfolio manager of energy in Citadel, then went to Echo Fin Ltd., another hedge fund, and then to Pimco.
Throughout all those years, what I was always doing was adding new sectors, adding macroeconomic analysis, and also starting to write and speak at different events and in media. I wrote my first book in 2012, Life in the Financial Markets, and since then it’s been four more books.
So right now, what I combine is the asset management side with giving classes and teaching at business schools, and also giving keynote speeches and lectures.
So in a nutshell—if that’s not too long—that’s basically what I’ve done in the last, gosh, three decades.
Yeah, wow, fantastic. So why don’t we just dive right into central bank theory first? I know you have quite a position here, and really, let’s just talk kind of macro and philosophically—your belief, really, on federal—what is really your thought process, right, in terms of the central banks, their role, their reach, and then kind of transition into where we are today based upon that.
The importance of central banks in global markets has risen exponentially in the last two decades. When I started in the financial market, people did pay attention to central banks, but did not pay the level of attention that we see right now—reading every last word of an FOMC meeting minute, all these things.
Now, why has this been? Central banks have to be a sort of element that limits the excess of governments in terms of fiscal policy. Central banks are there to basically manage the risk of inflation and also manage the risk of enormous levels of government imbalances. With the QE of 2008, this changed dramatically.
Governments and central banks, instead of being the lenders of last resort, became the lenders of first resort. Central banks, instead of controlling or curbing the risk of bloating government spending and bloating debt, were basically doing everything they could to disguise fiscal imbalances from governments.
So they started to be the opposite. Instead of being the force that tightens the risk of excess in government spending, they became the enablers. And what we are seeing right now in the policy of both the Federal Reserve and the European Central Bank—let alone the Bank of Japan or the Bank of England—is precisely that.
Central banks play an absolutely critical role, which is to ensure that there is liquidity in markets and also to ensure that inflation is going to be controlled. Unfortunately, the second has been completely abandoned.
And it’s been completely abandoned, although they obviously, in public communications, do say that they have a very strict role of curbing inflation. When they are at the same time not taking the steps to limit excessive government spending, then they are not making the control of inflation a priority.
So I think that is the biggest risk. We have central banks that, when I started in financial markets, gave a tremendous amount of information about monetary aggregates. And now central banks never talk about monetary aggregates. They don’t talk about money supply growth.
They publish it somewhere, but they don’t pay attention to it. When they talk about inflation, they never talk about government spending, government debt, and money supply growth. So all of that is exceedingly dangerous.
And it’s logical that in 2008 you saw the arrival of Bitcoin and other alternatives, precisely because of the risk that central banks stopped being truly independent and became, as they have, enablers of rising government spending and rising government debt.
Yep. Now, where do you really think we are in the cycle right now, just at the time of this recording?
Right.
The whole bond market was just downgraded recently. The Bank of Japan is way worse than we are, but it’s kind of interesting to see where we could potentially end up, given different things.
Inflation continues to be out there as a big headwind that we could be facing. You have tariffs still kind of up or down—whether these 90-day limits actually get passed or what’s really going on there.
But there’s just a lot of moving parts. I think it seems difficult to actually peg where we are to make the best decision. So what’s really your take on where we are overall with the economy?
We are coming out gradually of a private sector recession now. We’ve had a very, very challenging time for families and for small and medium enterprises, in which inflation has been completely disastrous and has devastated the ability of small and medium enterprises and families to achieve their projects, to be mildly profitable, etc.
But we’re still in a very weak economic growth environment. And economic growth, by the way, in many developed economies is bloated by government spending—therefore, it’s not productive economic growth. I don’t care about GDP. Usually, a lot of people talk about GDP, but GDP is easily bloated by government spending and debt.
So if you look at the figures of the manufacturing sector, the private sector—not the big companies, big companies are doing very well—but I’m talking about the real fabric of the economy, which are small and medium enterprises. Those are really struggling—really, really struggling now.
So, a very challenging environment, precisely because of the accumulation of inflation, higher taxes, and the impact on growth and investment of excessive government spending, which have worked basically as big elements that hinder economic growth. That’s where we are right now.
You mentioned the Bank of Japan. What we are seeing in the bond market—rising government bond yields despite lower interest rates—is something that is very typical of a period in which the world is losing confidence in sovereign debt as a global reserve asset.
Historically, we had heard as a myth that developed economies could increase their debt almost forever without any problem, because that debt is a global reserve that is going to be treasured by central banks and their balance sheets. But what we have seen in the past—particularly the past two years, but I would say since the end of the COVID crisis—is that a growing number of central banks globally are not adding more sovereign debt from developed economies in their asset base, and they’re actually going for gold.
Which is, let’s say, an alarm bell that tells us developed economies—obviously Japan exceeded these three limits many years ago—but developed economies have exceeded the three limits that show governments cannot just increase debt forever.
Now, the first is the economic limit. As I was mentioning before, you may get some GDP growth, you may get some economic growth, but the productivity growth, real wage growth, and the investment—the productive investment growth elements—are actually very, very weak. More debt, less productive growth.
The second is the fiscal limit. We have already heard numerous times in the United States how, despite Federal Reserve purchases of government debt and low rates, the interest expense has bloated to almost a trillion and is almost 20% or 25% of the budget. That is already a problem in France, in Spain, and Italy. In Japan, obviously, it’s also about 25% interest expense to the budget.
So: economic limit, fiscal limit, and the inflationary limit—that more units of currency in the system have created persistent inflation. Today, we should be having a level of inflation close to 1%, 1.2%. It’s about 2.8%.
So what we need to understand is how that persistent inflation comes from the excesses of the past, because inflation is a monetary phenomenon and is only created by massively more government spending—therefore, reducing or eroding the purchasing power of the currency.
So that’s, in my opinion, where we are right now. And this makes perfect sense once you understand this—why gold is going up and yields are going up while interest rates are either flat or coming down. Central banks are dovish, and at the same time, the dollar, for example, is not going up.
Usually, when yields go up, you see the dollar going up. Gold—you see, we are living in the evidence of the fact that the myth we have been told by mainstream for three decades was only a myth.
It was a myth. The idea that artificial money creation was going to work perfectly. And this is where I think we are right now. And it’s a very challenging time because central banks all over the world are saying: we don’t want this—Japanese, German, French, US, UK debt.
Yeah. So what do you think is the fate of fiat currency? Do you think there’s a chance that we fully move off of it into crypto or gold?
I don’t think we are going to move fully into crypto or gold for a very simple reason: crypto and gold have limited supply. So the only way in which we could actually fully substitute fiat currency for either of those—even those together—would be through a gigantic depression. I’m not even thinking of a recession; I’m talking about a depression, the destruction of government and commercial bank balance sheets all over the world.
So, no—I think that what we are likely to see is that crypto and gold start to work the way that central banks should work for governments. In the sense that now that governments know they cannot issue all the debt they want—because the central bank of China, the central bank of Oman, the central bank of Poland, or the central bank of India prefer gold to their units of debt—then there is a higher incentive to really curb their deficit spending and debt.
So crypto and gold are likely to work as, let’s say, the brakes that reduce the temptation of governments to continue to increase their imbalances. But I think that fiat and Bitcoin and crypto are going to be, let’s say, coexisting in some way. And that availability of monetary freedom is also likely to make governments wise up and notice that they may lose their currency reserve status, obviously.
Yeah. Do you think there’s some type of tipping point ahead of us? I mean, I’ve heard Jamie Dimon recently saying that the bond market is basically about to burst, and some other well-known names really talking about being at the end of the cycle. Even Ray Dalio, right, is talking about his macro view—like the end of the order—and changing macro cycles. What are your thoughts there?
I think that the diagnosis is correct, okay. What I disagree with—profoundly—with both Dimon and probably more with Dalio, is this idea of a full reset that is going to happen like this.
Sovereign debt crises don’t happen that way. And I find it almost amusing to read from people with such knowledge of financial markets that they expect an immediate burst or a big explosion.
Now, the way in which government debt crises happen in developed economies is the Japan style—it’s stagnation. Yeah, stagnation. The crowding out of the public sector over the private sector happens very, very slowly.
So it slowly erodes purchasing power of the currency, slowly erodes the ability of citizens to purchase a little bit more, to invest a little bit more, to purchase a home, to purchase a car—whatever. And it takes away the incentive for businesses to make long-term investments and capital expenditure, all those things.
So the type of crisis they are alluding to is more likely to happen if there were a huge imbalance in the private sector. But when it’s in the public sector—as it is—and they are right in that diagnosis, it is a very, very slow process of currency debasement and, therefore, productive growth destruction.
Yeah, that’s really a great observation, and I think people have to be mindful as well. People always have agendas out there, right? And fear sells. A lot of these folks are really using these platforms to scare you into buying gold, buying crypto—whatever it might be—talking about the end of the world coming.
But I don’t know about you, but I don’t like living in a state of fear.
And I think that the more educated you can become on the topic—just as you’ve really articulated here—is about truly understanding the systemic issue of the problem. And you’re right—Japan is a great example to see how things can unfold.
People always have agendas-and fear sells. Educate yourself instead of living in fear.
Yeah, think about this. Those three limits that I mentioned have been surpassed by Japan and by France many years ago. However, neither of the two have shown the type of abrupt destruction that Dalio or Mr. Dimon are referring to. I understand what they see, and I completely agree with, as I said, the diagnosis. But we need to understand that the fiat world doesn’t work like that. The fiat world is not a world of absolutes; it’s a world of relatives.
So the first thing you need to understand is that the reason why Japan has not imploded is because there is no alternative to the yen in the fiat world. The reason why France has not imploded is because the euro, with all of its weakness, doesn’t have an alternative. And the reason why the United States will not implode either—and actually has fewer chances of imploding than Japan or the euro—is precisely because of the same reason. It’s a world of relatives.
So monetary policy and fiscal policy are not a game to see who wins, but a game to see who loses first. The way in which this manifests is not through an implosion or a complete meltdown of financial assets, but the opposite. There is absolute logic in seeing Germany in complete stagnation and the DAX at all-time highs. There is total logic in France being in a complete train wreck of a monetary and fiscal situation, and at the same time, the CAC doing much better.
The CAC is the French index. The same thing with the Nikkei and Japan, and the same thing with the S&P 500 and the United States. What are those indices showing? What they’re showing is monetary debasement.
So what? That process of, let’s say, slowly cooking the internal economy happens and manifests in surprisingly higher prices of real estate. Why? Because the purchasing power of the currency is imploding. Higher valuation of stocks despite economic stagnation. And people just don’t understand why.
Debasement of the currency—and at the same time, the flip side of that coin—is worse performance of sovereign bonds, which used to be a reserve asset and used to be, let’s say, an attractive and stable investment. So people are actually losing money with their sovereign bonds, and the 60/40 portfolio that we used to work with doesn’t exist anymore.
The part that you dedicated to bonds has either gone to very risky bonds, high-yield, or has gone to gold, crypto, etc. That is, to me, the classic evidence of monetary debasement. I always say to people, Venezuela did not implode. Why do you think that the United States is going to implode? You see what I mean?
But did it have stagnation, recession, impoverishment of the population, etc., and bloated government spending? Absolutely, it did. And obviously, we’re talking about a very specific economy with a dictatorship and no legal security, etc. So once you understand that, you understand that the outcome—that the result of these enormous levels of imbalances coming from government spending—results in secular stagnation and generalized worsening of the capital expenditure and investment process.
Yeah. So with that being said, where do you think investors should be deploying their capital these days? Our investment thesis has really been mostly around real assets, where we can get into cash-flowing, tax-efficient, and forced appreciation into assets like commercial real estate. We like energy sector alternatives and real estate.
Yeah, obviously real estate, commercial real estate, all of these hard assets have a double effect — have a double positive. Now, on the one hand, they protect you against monetary debasement. The reason why so many European countries have such a high percentage of owners of property in the economy is because that’s the only way they could find to protect themselves against inflation. So real estate does that. And it also gives you, right now, a much better real return than sovereign bonds or investment-grade bonds. That is financial repression for you. That is exactly, by the way, what central banks have been engineering — to force savers out of the market and make them be investors.
So it makes no sense to purchase sovereign bonds. And people have to take a significantly higher level of risk, be it a liquidity or a business risk, in order to get some real positive return above inflation. So I agree completely with hard assets. You need to be invested in gold as the manifestation of that monetary debasement. Cryptocurrencies — I personally think Bitcoin is an asset in itself, and it’s proven to be more stable, less volatile, and a lot more independent from the cycle of equities. But you need to be in equities. I prefer developed economies’ equities for the reasons that we just talked about.
The reason that we just talked about is because the monetary debasement impact is very, very evident in the super-large companies that are quoted in these indices relative to the negative impact that happens on SMEs. If you think about it, this is all the result of what I mentioned in my book Escape from the Central Bank Trap — that artificial money creation is never neutral. It always disproportionately benefits the first recipients of money and hugely negatively impacts the last recipients of money, which are real wages and deposit savings. So ultimately what we’re seeing is a gigantic transfer of wealth from savers and from small businesses that cannot access the level of capital and the level of credit that a large company can — to governments, whose size becomes larger and whose tax receipts become weaker in the cycle.
Yeah, interesting. Do you think — I mean, where do you think we are in the crypto cycle? Is there still a lot more room to go on this?
Well, I think that there’s room to go in Bitcoin and other cryptocurrencies, particularly because they’re not yet currency. They are startup currencies, the way that I call it, no? In the sense that they’re not yet a reserve of value, unit of measure, and generalized method of payment. Bitcoin is starting to become a generalized method of payment and a unit of measure. You can go to Arizona, you can go to Mexico, and you have Bitcoin ATMs, but they’re not there yet.
What I am always warning everybody is that when they are, the cycle does not lead them to continue to go up in value. You see what I mean? The same that we have seen with the U.S. Dollar, with so many others, is that you cannot expect it to just go up in value all the time when they become real alternatives to some fiat currencies, no?
So I think that we’re still far away from that. And what we are in is the process of seeing them — I always say that Bitcoin is a teenager. We have seen it go from an infant, it’s a teenager, but it’s still some time to see it as an adult.
Yeah, interesting. And what’s your take on interest rates in this environment?
Oh, we—I mean, the norm is going to be negative real interest rates. Rates, the norm. Financial repression will be the way out for this solution—for this situation. It will be the way out. There is no other way out. By the way, don’t think that any government is going, or any central bank with it, is going to resort to any other action than financial repression, i.e., higher money supply growth and lower real interest rates.
Yeah, very interesting. You know, there’s lots of—I mean, lots of talk all over, right, in terms of rates going up, rates down, the inflation, and all of the potential impacts that could be there. But I think, as you articulate it from that perspective, it really makes a lot of sense. But the big question a lot of people are trying to figure out, right, is—I believe it’s about 9 trillion that the U.S. has due right now, and the current administration is trying to find that out.
So, do the lowering of interest rates play a role in trying to add more liquidity into the system to do that? Is it going to be tariffs? Is it going to be some of these new—like the Visa Gold card that the administration is trying to sell? Or what do you think is going to move the needle on really trying to pay off 9 trillion?
Well, the U.S. is not going to pay off $9 trillion of debt. It is going to refinance $9 trillion of debt. How do you refinance $9 trillion of debt with a very public concern about the sustainability of the United States debt? But as I said before, the fiscal and monetary world is not a world of absolutes, it’s a world of relatives. So the only thing that the United States needs to do—it doesn’t need to do it yet, because as we have seen in the last issuances, the level of bid-to-cover on U.S. debt issuance is about 2.3, 2.5 times—so demand is significantly higher than supply. But the way to do it is to show the weaknesses of the others.
So right now, the Federal Reserve and the U.S. Government don’t need to point out to France, to the euro area, or to Japan. They know that they can issue their debt at a slightly higher yield than they would want to, but as I said, 2.3, 2.5 times demand—oversubscribed.
So right now they don’t need to do it. Now imagine for a second that the situation got really, really tough, and that this bid-to-cover fell to one time. Okay. It’s very simple. You just have to say: check France.
Check France. You’re worried about the United States? Let me tell you about France. It’s got 400% of GDP in committed, unfinanced liabilities—i.e., don’t worry about France’s debt today; worry about the debt that they have already committed and they haven’t issued yet.
You see what I mean is that the United States being the world reserve currency is not because the U.S. Dollar is fantastic, but because the alternatives are worse. So if you remember the last time that we had a similar environment in which people were worried about sovereign debt, it did not manifest in the United States. It manifested in the euro area or, in other crises, in the Asian crisis or in the Mexican crisis. It depends. It manifests in that place where the solvency is much worse than that of the United States. The United States is not good, but it’s not the worst. It’s not even close to the top ten of the worst, if you think about it from the perspective that I just said. A lot of people do.
Actually, the norm and consensus is to look at debt-to-GDP today, deficit in the next five years, and how much you need to refinance. And more or less people say, oh, this is because it’s an S&P or Moody’s way of looking at debt. No. You shouldn’t look at it that way. What is the French, the German, the Spanish, the Italian, the Japanese government already committed to in 30 years’ time, but not financed yet? Think about these enormous entitlement and pensions and enormous social expenditures that will be financed in the future.
So the United States does have some unfinanced, committed liabilities, but it’s about 100% of GDP. The problem is not there. So the United States government right now—and I’m sure that Besant and Powell speak very, very regularly—I know, I’m not sure, I know that they speak regularly. They just need to look at the market and they say, okay, fair enough, we may be able to issue that debt at a slightly higher or slightly lower yield.
But if there was a real problem, what the world would immediately turn to is those countries that have a much worse position. And there are a lot. Because remember that despite all the tremendous headlines that the U.S. debt ceiling gets.
People don’t understand the concept of the debt ceiling relative to the rest of the world. People see the debt ceiling and they say that’s ridiculous because they lift it all the time. No, but they lift it after reaching agreements that limit the speed of increasing debt. In France, in Germany, in Spain, in Italy, in so many countries—in all countries in the Euro area—the debt limit is exceeded. They continue to spend. They don’t even discuss; they don’t even need a headline-grabbing event in which they need to reach an immediate settlement so that there will be a reduction in some parts in spending and some part. You see what I mean? So the mechanisms that the United States has, due to all these limitations, make it continue to be the world reserve currency. That’s why people in the market don’t understand why, in the middle of the negotiation of the debt ceiling, the dollar goes up.
Remember in the past too—it doesn’t make any sense. Oh my gosh, there’s going to be a government shutdown and the dollar goes up. You know why that happens? Because people don’t look at the world knowing that debt is money and money is debt. And therefore, the only thing that makes the world reserve currency lose its status is if any other of the contenders is not following the same mistakes that the world reserve currency is following. But it’s the opposite. The problem in the world is that the European Central Bank looks at the Federal Reserve curve, the Euro area governments look at the U.S. government, and they say, hey, deficit spending, massive government debt—that is not a problem. Let’s do the same instead of doing the opposite.
What I find interesting in this current scenario is now we have a player, which is China, which is not following that principle—which is following the principle of, in a period of economic weakness, not increasing government spending. This is very interesting. In a period of economic weakness, it’s not increasing sovereign debt in the balance sheet of the central bank, but buying gold. China’s going Austrian School. I’m just joking. No, but it’s sort of going Austrian School in its approach to economic cycles.
This I find interesting because it’s obviously not a contender to be the world reserve currency—the yuan—because it has capital controls, because the fixing is not free, because the exchange rate is not free, and because it doesn’t have legal and investor security. But it is certainly going the opposite route of the U.K. government and the Bank of England, the Japanese government and the Bank of Japan, or the Euro area and the ECB.
So do you give any merit to the BRICS nations?
None. The BRICS nations. I’m going to say something that is not going to be very popular, but the BRICS nation is like the Beatles with four Ringos. It’s a nice idea, and I’m sorry—Ringo Starr is a great drummer—but it’s a nice idea. But there is no merit to the BRICS the way that they have presented themselves. What I find interesting about the BRICS is not what people are talking about. What I find interesting about the BRICS is that this is actually a great tool for China to unite Brazil, Russia, India, and South Africa—not to create a currency in which the Chinese citizens would have to swallow the inflationist policies of Brazil, Russia, India, and South Africa. No way.
I don’t see anybody in China accepting a currency in which you have to agree with the level of monetary and fiscal insanity of those trading, but not political, partners. But I do think that it’s a great, let’s say, way in for China to increase a little bit the, let’s say, the utilization of the yuan, which is exceedingly low for the size of the Chinese economy.
Yeah, Daniel. So with all of that as a backdrop, what do you think is the best piece of advice that you could give to the audience about how they could actually position their wealth right now?
The best advice that I can give them is: don’t try to generate a higher performance than the index. Don’t try to generate returns above the index. Try to defend yourself against monetary debasement. You would forget about the headline-grabbing things about whatever administration the United States has right now or whatever administration Germany has right now. Think about what’s really going on. What’s really going on is that all this enormous size of governments is going to be slowly dissolved through monetary debasement.
And if you think about monetary debasement, then you understand that you need to be looking at market cycles as an opportunity to invest, i.e., if you see a correction, don’t catch a falling knife. But if it starts to move back up, you need to follow money supply growth. You need to follow what governments and central banks are doing. Don’t believe the hype of hawkish central banks. There is no central bank in the world that is hawkish. All central banks, in a more open or, let’s say, disguised way, are going to be there to try to disguise the imbalances of governments.
Therefore, you need to protect yourself against monetary debasement with these investments that we have just mentioned: hard assets, gold, crypto, and equities. So what you basically have to do is to think that the highest risk asset is the one that the market is telling you is the lowest risk asset. The highest risk asset is cash and sovereign debt.
If you’re protecting wealth, don’t chase returns-defend yourself against monetary debasement.
Excellent. Really well said. Can’t thank you enough for your time and insights, Daniel. Really refreshing to get some just common-sense understanding of what’s really happening and a different way to look at the challenges that we have so that we can really be better investors — make better decisions about our wealth.
If people would like to check out your book or follow you or connect with you, what is the best place they can reach out?
Well, I always say that it’s easier to find me than to avoid me. So, you have an X account in English. Deal. You have my website, dilakaye.com — it’s in Spanish and in English. You have Spanish and English X accounts, Spanish and English YouTube channels, and my four books: Life in the Financial Markets, The Energy World is Flat, Freedom or Equality, and Escape from the Central Bank Trap.
Excellent. We’ll be sure to link everything in the show. Notes for all the listeners. Daniel, thanks again for coming on.
Thank you so much. I really enjoyed it.
Thank you. Thanks for listening to this episode of Wealth Strategy Secrets.
If you’d like to get a free copy of the book, go to holisticwealthstrategy.com — that’s holisticwealthstrategy.com.
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