Mike Maharrey on The Bryan Hyde Show: Insights into Monetary Policy and the Future of the U.S. Dollar

In a recent episode of The Bryan Hyde Show, Bryan Hyde interviewed Mike Maharrey, an analyst and writer associated with Money Metals Exchange and the Tenth Amendment Center. Maharrey brought his expertise in macroeconomics and constitutional principles to discuss pressing issues in monetary policy and the shifting global economic landscape.

The Federal Reserve and Inflation

Maharrey started by shedding light on the Federal Reserve’s monetary policy, which he sees as driving the inflationary trends diminishing the dollar’s purchasing power. He described how the Federal Reserve’s quantitative easing and other monetary policies have created an environment where more dollars in circulation lead to rising prices across the board. 

He emphasized that monetary inflation is the primary cause of price inflation, and external factors like corporate greed, geopolitical events, and pandemics have had less of an impact than the Federal Reserve and U.S. government’s actions.

Maharrey critiqued the focus on short-term economic news and trends, urging listeners to instead pay attention to the long-term economic trajectory. 

Tracing the roots of inflationary trends back to the 2008 financial crisis and even further to Alan Greenspan’s policies in the 1990s, he highlighted how the Federal Reserve’s actions have contributed to a cycle of boom and bust. 

The resulting monetary inflation has impacted all aspects of the economy, from grocery prices to real estate.

Sustainability of Current Monetary Policy

Maharrey was clear in his view that the current monetary system is unsustainable. He used vivid metaphors to illustrate the point: the system is like a can being kicked down the road, but eventually, the road will end. 

Although he refrained from predicting the exact timing, he emphasized that the long-term effects of current policies will inevitably lead to a significant economic crisis.

Potential Responses and Shifting Global Power

Looking ahead, Maharrey discussed how a potential economic crisis could lead to a global shift in economic power away from the U.S. dollar. He pointed to the growing influence of BRICS countries (Brazil, Russia, India, China, South Africa) and other nations exploring ways to reduce their dependence on the dollar. 

He noted that as the U.S. government continues its borrowing and spending, countries like China are moving away from U.S. debt and increasing their gold reserves.

He also raised concerns about potential government responses, suggesting that global governments might seek to tighten their control over money through central bank digital currencies (CBDCs). 

Maharrey sees CBDCs as a potential tool for government overreach, offering unprecedented control over individuals’ financial transactions.

Key questions and answers from the interview between Bryan Hyde and Mike Maharrey are as follows:

Can you describe the different roles you play in your work?

Maharrey explains that he wears multiple hats. He primarily works as a news editor and analyst at Money Metals Exchange, where he focuses on macroeconomic trends. He also contributes to the Tenth Amendment Center, which aims to educate people about constitutional principles and advocates for decentralization.

What is causing the dollar to lose purchasing power and how did we get here?

Maharrey attributes the loss in purchasing power to monetary inflation caused by the Federal Reserve’s policies. He emphasizes that the Federal Reserve has been injecting money into the economy through quantitative easing since 2008. 

He traces the inflationary trend back further to the 1990s, highlighting that more dollars in circulation reduce their value, leading to rising prices.

Is the current monetary policy sustainable, or will it eventually hit a point of crisis?

Maharrey believes the current monetary system is unsustainable and will inevitably lead to a financial crisis. While he doesn’t predict the timing, he compares the situation to kicking a can down the road—eventually, the road will end, and the economy will face a significant downturn.

How might global powers respond to a financial crisis, and what impact will that have?

Maharrey predicts that a financial crisis will shift global power away from the U.S. dollar. He highlights the growing influence of the BRICS countries, which aim to reduce their reliance on the dollar. 

He also warns of governments using central bank digital currencies (CBDCs) to exercise unprecedented control over financial transactions.

Are we likely to see a global shift towards a unified digital currency similar to Bretton Woods?

Maharrey doubts the feasibility of a unified global currency due to political divisions but sees a shift toward distinct economic blocs. He envisions a future where no single currency dominates, unlike the dollar today.

Conclusion

In concluding the interview, Maharrey predicted that while a unified global currency system is unlikely, the future could see the emergence of distinct economic blocs, leading to a shift in global economic power. 

Bryan Hyde expressed interest in further discussions with Maharrey on potential alternatives for individuals to protect their financial futures in the face of these economic changes.

Overall, Maharrey’s insights underscored the complex interplay between monetary policy and global economics, leaving listeners with much to consider about the future of the dollar and the global economy.

Originally Published on Money Metals Exchange.