In this discussion with Alasdair Macleod, I examine the factors driving the purchasing power of currencies lower and why investors should pay attention to monetary debasement, inflation, and the long-term erosion of savings.

We discuss fiat currencies, central banking, gold, financial repression, and why the loss of purchasing power is not merely a technical monetary issue, but a consequence of deeper political and institutional incentives.

Watch the full discussion below:

Key Takeaways

• Why fiat currencies tend to lose purchasing power over time.
• How central banking and monetary expansion erode savings.
• Why inflation is a hidden tax on people who hold cash and fixed-income assets.
• How gold helps preserve purchasing power when confidence in paper currencies weakens.
• Why financial repression forces savers into increasingly risky decisions.
• How political incentives drive governments toward debt, money printing, and currency debasement.