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This in-depth interview explores the current precarious state of the banking system, focusing on the potential for smaller and possibly larger bank failures due to insolvency issues highlighted by the end of the Bank Term Loan Facility. Bob Moriarty, a financial expert, discusses with Andy the impending financial crisis exacerbated by derivatives and the banking system’s inherent design flaws. Moriarty emphasizes the imbalance between short-term loans and long-term investments as a significant risk for bank runs, drawing parallels to historical financial collapses. The conversation also delves into the broader economic implications, including the potential for a shift toward totalitarian government measures, as predicted in The Fourth Turning, and the precarious position of physical and digital assets in such turbulent times. Moriarty criticizes the handling of economic policy and regulations, calling for a more conservative approach to finance and investment amidst growing uncertainty.
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