Flashback: Seminar Edin Mujagic

Last Thursday, the Aunexum Precious Metals Group, of which Holland Gold is a part, organized a seminar with monetary economist Edin Mujagic. In just over an hour and a half, he explained how unconventional monetary policy by central banks has become the new normal in just a few years. From negative interest rates to buying government bonds and stocks, all options are being considered today to maintain this debt-based money system.

Mujagic said that money systems have been abused by rulers and governments throughout monetary history. First this was done by reducing the amount of gold or silver in coins and later by gradually abandoning the gold standard. Today, central banks do this by buying bonds, which lowers interest rates. For example, governments can borrow more cheaply, while savers receive less and less interest. Today, savers are losing purchasing power, because inflation and wealth tax combined are much higher than savings rates.

Negative interest rates

An interesting graph that Mujagic showed was that of the interest rate policy of the US central bank. He noted that not only are interest rates getting lower and lower, but it also takes longer and longer for interest rates to go up again after each crisis. And once interest rates go up again, they will never reach pre-crisis levels.

This is a worrying trend, as interest rates are now very close to zero. If a crisis were to break out now, central banks worldwide would have to cut interest rates below zero. This explains why there is increasing financial repression and why governments are keen to ban cash. According to Mujagic, we have been trying to kick the proverbial can in front of us for years, but we are now approaching the end of the road.

In his presentation, the monetary economist also made the link between industrial revolutions and changes in the monetary system. After every revolution, there was a transitional phase that, according to him, was always accompanied by a lot of violence and instability. It seems that we are now in such a transition phase again, just like in the 1970s.

Want to read more from Edin Mujagic?

Participants of the seminar were given the latest collection of various columns and articles by Edin Mujagic to take home. Would you also like to receive this bundle? Then click on this link to order it.

Seminar Edin Mujagic