In this discussion with Redmond Weissenberger of Liberty.me on Better Red Than Dead, I talk about the moral hazard created by fiat currencies and how it distorts investment behavior.

We discuss how rational investors who understand the fiat currency system often seek hard assets and junior mining companies for protection. But that same search for protection can lead them into a sector filled with promotions, hot air, weak management, and companies with little real value. The problem is not merely bad companies; it is a monetary system that pushes people into speculation because honest saving has been made increasingly difficult.

Listen to the full discussion below:

Key Takeaways

• Fiat currencies create moral hazard by punishing saving and encouraging speculation.
• Rational investors often look to hard assets and junior mining as protection from currency debasement.
• The junior mining sector attracts too many promotions, weak companies, and stories with little substance.
• Understanding fiat money is not enough; investors must still avoid being trapped by mining-sector hype.
• Honest saving becomes harder when the monetary system itself is corrupted.