Argentinian Libertarian Economist on What the Hell is Going On Over There | Rafi Farber
Summary
Transcript
But at some point, the interest it pays reinforces inflation. That’s the inflection point. Hey, guys, Rafi here from the end game investor. And last night I had the pleasure of interviewing Alan Futterman, an argentinian PhD student who is currently studying for a PhD in political economy in London. Alan Footerman is a PhD student in political economy at King’s College in London. He has a BA in economics from UCEL in Argentina and a master’s degree in finance from Cuato Ditelle University in Argentina.
He has been an adjunct professor in institutional economics at UCEL, and his work has been published in journals such as the International Journal of Finance and Economics, Review of austrian Economics, and Journal of Financial Economic Policy, among others. This was one of the most fascinating discussions I’ve had on central banking. I understand the broad strokes of central banking. I understand that when you print too much money, there is inflation.
I basically understand how central banking works. But this guy is an expert, and he understands the mechanics of how the hyperinflation is locked in, in Argentina. And there isn’t much that Javier melee can do about it without risking the collapse of the entire system and law and order going with it. So he tries to lay out a solution for what Meli might be able to do. But the most salient thing that he said that I really understood was that at a certain point, there is an inflection point.
If you have chronic fiscal deficits and you have to print money in order to cover those deficits, then eventually you print so much money that you cannot allow it to circulate in the economy. So you need to pay interest on that money that you print, so it stays in the central bank. And now the interest that the argentinian central bank pays is so high that that money does not go to businesses, because the central bank pays the highest rate for it, to keep it from circulating, to prevent inflation.
And that prevents money from going to the private sector and destroys production capacity and destroys production in your economy. And that itself leads to hyperinflation. So there is a point, there is an inflection point where the higher the interest rate is, the higher the inflation, meaning the consumer prices go higher and higher and higher. And that is the point at which Argentina is now in. Now, when we’re talking about the end game, that will be the situation that the Federal Reserve will be in.
And though Alan thinks it is a ways away, I don’t. We have a disagreement on that. But you could decide for yourself. It’s obviously a friendly disagreement. I’m good friends with Alan and I wish him the best in his work. And if you would like to support my work and what I do on this channel, then consider buying a dirty man safe. Use code endgame ten at checkout for 10% off.
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And it will always be interesting. I promise you that. So enjoy this interview with Alan Footerman. It is fascinating. It can be a little bit confusing. You might have to listen to it twice, but it is chock full of information that even I didn’t quite understand until he explained it to me. Hey, guys. RAF here from the endgame investor. I got my good friend Alan Foderman, who is a native Argentinian.
Right now he’s in London for a PhD in political economy. And you just heard me give you his bio, so it’s very impressive. And I’ve worked with him on a few projects, and I’m glad to talk to you. Now, Alan, the first question I want to ask you is, how is life in Argentina? When were you last there? Is it getting better? Is it getting worse? What’s it like to live in a hyperinflationary economy? And I have one caveat.
Living in a hyperinflationary economy, where there’s still other functioning currencies, is very different from living in a hyperinflationary currency where the reserve currency itself has collapsed. So what you say about Argentina isn’t necessarily going to be how it’s going to be when the dollar collapses. But what’s it like there? Well, first of all, Rafi, thank you so much for the invitation. I really enjoy talking with you. So thank you.
Thank you for that. Now, with respect to your question, I’ve been lost in Argentina a month and a half ago. And, well, basically, you get used to it. It’s like you discount that you’ll have this insane rate of inflation and you live your life with that knowledge. So basically, yes. But at the same time, I have to say that you have to take into account that there are different fiat currencies.
You have some that are better than others, and this may surprise your audience, but the US dollar outside of the United States is pretty valued still, especially in places like Argentina, where everyone saves in US dollars. So in Argentina as well, you’ll have one of the biggest cash reserves in the entire world. I think it sits in about $100 billion in cash that Argentinians have in safe deposit boxes and below the couch as well, in their homes.
Yes, Argentinians save in US dollars, basically. So that’s the main way in which people defend themselves from the insane rate of inflation. Basically, that’s it. So that’s what keeps people from starving to death, basically. Well, in a sense, yes. But at the same time, the entire system runs on inflation. It’s like it’s built in the system. So everyone knows that in order to defend themselves when they receive the pesos they earn in the market, they either put them to earn interest.
By doing that, sometimes they beat inflation, sometimes don’t. But at least they don’t lose all of their value. And at the same time they could buy stuff, basic stuff, and or buy US dollars in order to save. But yeah, it’s basically how the system works, which is why Argentina is falling persistently but slowly throughout the decades, and it’s increasing its poverty rate and economic decadence and, well, nothing that you don’t know.
Yeah. So how was life for you? Did you put dollars under your mattress? I mean, how do you live your daily life in terms of going to the store, buying food, what kind of preparations do you have to make? What’s the hyperinflationary mentality like? Well, it’s like we don’t think, of course, outside of Argentina, to talk about an inflation rate above 50% a year, it’s nearly insane. But in Argentina you get used to it.
You get used to a 50% rate, 60%, 80%, 100% rate. Last year it was completely insane. I don’t have the number, but it was in my head right now, but it was above 100% inflation rate. And basically you do the same stuff that you do with a 30% inflation rate. That is, you either buy the consumer goods you need for the month, you go out, people go out a lot in Argentina to eat, to enjoy a beer with your friends, you name it.
At the same time, with everything that you have left, you buy dollars. Now, the thing with US dollars in Argentina is that it’s not legal to buy them. There are foreign exchange controls in Argentina, so you need to basically, to buy them in the black market. Basically, yeah. Even under melee, he hasn’t stopped that. Well, what happens right now is that although he has devalued the currency once he got elected, let’s say you had this parallel exchange rate that was about 1200 pesos for one dollars in December, and the official exchange rate was 360 pesos for one dollars, more or less.
Okay, so you had this huge spread. Now, of course, you couldn’t buy legally dollars in Argentina with your bank account. So you have to take pesos, physical cash, and go to these places that are called cueas, which are basically apartments and offices, where you take your cash and they give you us dollars, but you buy them at the real exchange rate, which is this 1200 pesos for one dollars.
Now, what happened was that when Milay got. Basically, when he got into power in December, he devalued the currency. Actually, he brought it closer to the market rate, which was 1200, and he got it about to, let’s say, 600 and 5700, something like that. Right by now. So what happens is that, although it’s not a complete unification, it got things a bit better, particularly for companies that export.
Because you can imagine, if you’re going to export, right? And you get paid 360 pesos for something that’s worth 1200 pesos. And if you have to import in order to produce, because, of course, you need things that are built abroad or manufactured abroad in order to basically create this stuff that you later export and you pay 1200 pesos for that, then that’s going to be a problem for your cash flow.
But, Rafi, let me explain to you why this insane system works like this. So your audience could get an idea on how a country ends up in this position. Basically, Argentina has been dealing with chronic fiscal deficits for decades, okay? Now, as you know, a fiscal deficit could be financed in two ways, basically by printing money or by debt. So Argentina has been going from one side to the other, printing money and debt.
Once printing money runs, it goes complete full crazy, and you end up in hyperinflation. Then, basically, public spending falls in real terms, and then you begin this cycle again. And the other position is, if you go full in debt, right? Basically, what happens at some point, you cannot pay the debt first, you cannot pay capital parts. Basically, the amortization of the debt, you cannot do it, then you cannot pay interest and then you have to get in debt in order to pay interest and eventually it runs out and you have to default your debt.
Basically that’s what Argentina has been doing. Now, what has happened mainly during the last 15 years that Argentina was not able to, or let’s put it this way, Argentina chose to finance its fiscal deficit mainly by printing money. Now how does that work? Basically what happens is that the treasury issues this type of debt which are called payment advances or. Yeah, basically, yes. These special papers and they sell them to the central bank.
The central bank cannot sell them in the secondary market. They are basically accounted for at face value. Right. They have no market value, but you know the nominal value of the paper, they put it in the balance sheet. What is this? Where’s all the money? That’s as good as money, sir. Those are ious. They print the equivalent money, they give it to the treasury and the treasury pays its bills.
Right. Public spending, basically, yeah. So what happens? But that’s not the only crazy part. The other thing is that the central bank accounts for these papers as assets in its balance sheet. Look. See this? That’s a car. 275,000. Might want to hang on to that one. So the balance sheet of the central bank is a complete joke, basically because it has nothing, it prints something out of thin air, but it’s literally out of thin air because the papers that it gets from the treasury, it won’t get paid for that.
Never. Right. So what happens is that once this fiscal deficit begins to grow and as the treasury issues more paper in order for the central bank to purchase it and print the money so the treasury can pay its bills, things get crazy. But there is another part of this system that reinforces the money printing mechanism, which is that the central bank buys from exporters all of the US dollars that they bring to the country.
So it’s necessary for a company that exports something to sell the US dollars to the central bank. You have to by law. Exactly, yes. And they sell it at the statutory 300 bullshit rate. Exactly. Yeah, that is correct. Now, so what happens is that the central bank is forced to print money every time a company exports something in exchange for the dollar. So basically it increases the pesos on the liability side of the balance sheet and at the same time it does so in order to increase their assets.
Its assets. Right. The US dollars, which it uses as reserves. But what is the problem with this? That if you’re going to get your US dollars from exports in a sense, you could say it’s a bit more legitimate that you accumulate assets, right? But if you’re going to get those dollars because of debt that the treasury is issuing, then actually you are counting, as in a consolidated fashion.
If you take into account the entire government, you’re considering assets that in fact you owe them, because the other side of the asset, which are the US dollars that you get, is the debt that the treasury is issuing abroad, and it’s denominated in US dollars, so you won’t be able to pay it because you don’t print the US dollars, you’re not the Federal Reserve. So basically, that’s what happens.
Now, let me give you one more point to this entire mess, which is that what happened was that, as I said, because the government resorts to money printing in order to finance a chronic fiscal deficit it has later, or at least this was the idea, to sterilize those new pesos that the central bank issues by paying interest on reserves. Right? That’s what the Fed’s doing with the reverse repos, right? It’s similar to reverse repos, but on steroids, right? So what happens here is that it’s insanely short maturity, like I would say, for example, from one to seven days with an astronomical nominal rate, which right now I think it’s about 100% nominal rate.
But you have to remember we are talking about a maturity of one to seven days, so it’s not an effective rate of 100%. I don’t have the number now, but let’s say 170 or something like that year, right? So you can see that it’s quite, in Argentina at least. You see in the very short term, that the early inflation rate, in a sense, is determined directly by the interest paying rate by the central bank.
Hold on, let me just make sure I got this in my head, because I sort of understand what you’re saying. So you’re saying the central bank is paying so much interest to its clients that this money is circulating so fast that it is itself causing the hyperinflation or it’s a big factor in. Absolutely. Because, for example, if you adopt, I know that you are a very strict austrian economist, and as you know, I do like austrian economics as well.
But even if you use another framework, for example, rational expectations, basically, you could get the idea easily. If economic agents are seeing that the central bank is issuing money at a specific rate, which is the same rate that it pays for its central bank liabilities, and that rate is, let’s say, 100%, then it’s obvious that they will be expecting that the inflation rate tends to converge to that rate.
Basically, that is what we saw in the late 70s into 1980 in the United States. And also, it’s what I think that. Let’s get into melee after this. But it’s what I think that we’re seeing. We’re starting to see this now. Interest rates are heading up, and what is happening is that the inflation rate as measured by the CPI and all those other bullshit measures, even those are heading up now, or I think they’ve bottomed out and they’re heading up now.
And the central bank, the Federal Reserve, has to pay a higher interest rate to sterilize all this extra money to keep it from circulating. But that interest that it pays goes into the money supply anyway, and you end up in the same gordian knot. Yes, well, that is true. That is true. I don’t agree with you in this. I agree with you in the sense of it’s the same mechanism, but I don’t agree that it’s going to get as crazy as fast as in the case of Argentina.
But of course, I could be wrong and you could be right. You know, I’m a bit more moderate than you. It’s okay. Yeah. But in any case, what happens is that in Argentina, at least you get this situation where I will put you two numbers just for you to consider. Central bank liabilities that are earning this 100% nominal rate per year are three times the monetary base. Okay, so this is a lot of money that is earning interest in the central bank.
I’ll give you a number. It’s about, I think, if I’m not mistaken, from what I saw last week, it’s about 30 trillion pesos. Really? Okay, then 100 billion earning. That’s how much the central bank of Argentina is paying its banks. No, that’s how much their liabilities are worth, which are in the central bank. That is. That’s 30 trillion pesos earning interest in the central bank, which are three times the monetary base, which is.
How is that possible? Well, now some people ask, why is it that Milay is not unifying the exchange rate or liberating the entire economy from one day to the other? Basically, because if he would do that, you’d get hyperinflation. We would be talking about something beyond anything that we’ve seen before. And believe me, Argentina has seen terrible hyperinflationary periods. For example, in the 80s, it saw 5000% inflation rate.
So that’s why he’s not doing it, because if he would, for example, say the central bank says from one day to the other, look, I won’t be paying interest on reserves, right? It goes from 100% nominal rate to zero. And at the same time you unify the exchange rate. That is, you allow people and companies to buy US dollars freely. Then you would in a sense bring to the market three times the monetary base, which would take the US dollar to the moon, the price, right.
And at the same time you would take every price in the economy. Basically we don’t know where. So in a sense you would say, well, this is what should be done, because this is the only way to basically to clean the system, right? That’s a reset. That’s the reset. All the conspiracy theories say, oh, reset, reset. But that is the reset. Exactly. Yeah, that is correct. Now, but you have that way in order to do that.
But at the same time you have to consider the political side, which is the ugly side of the equation, which is will you able to maintain power and to sustain the rule of law in a system that falls into a hyperinflation of such a degree where it would take, for example, poverty rate to 90% or even more. And in that case, people would go to the street to loot basically all businesses, companies would fall and close down.
So it’s a very complex situation. So what they are trying to do right now is they are approaching this situation from the point of view of saying, okay, so we’ll try to liberate some things very fast. For example, deregulation. Milay, as he got into power first, he issued a very massive executive decree deregulating everything, basically. And at the same time, he sent a bill, a huge bill to the congress, to Congress, in order to deregulate the economy, specific parts.
Now, there are political blocs in Argentina, of course, that they don’t want to lose their privileges, so they are blocking the law and at the same time they are blocking the executive degree. So basically what happens is that those things that Milay could do fast, they are getting blocked. And at the same time, the things that Milay chose to do a bit slower, which is this liberation of specific economic variables, it is being done this way in order to avoid hyperinflation now.
So one more thing. What is he going to do? Because this has to be solved, particularly the financial side of the government needs to be cleaned. Right? Needs to be cleansed now. So how do you do that? Well, basically the idea, I think they are preparing the ground in order to swap, to offer to the market a voluntary swap of very short maturity, debt, for longer maturities so as to allow them to take the risk of hyperinflation out of the equation and to hold on, they’re offering longer term debt to the public.
Well, exactly. Now, how does that work? Because those 30 trillion pesos that are earning interest in the central bank, with central bank debt, who owns those 30 trillion? Who do they belong to exactly? Well, mainly funds, banks and people. For example, when anyone, a company, let’s say, puts money into a CD in a bank, right? The other side of the CD is not that the bank is lending money to another company, as it should be in a free market.
No, they lend the money to the central bank, at the central bank interest rate, or the policy interest rate, as whatever you want to call it. So basically what happens is that all the savings in pesos of the economy are placed in the central bank earning interest. The only people that can buy those interest bearing instruments that the central bank issues are the banks. So what happens is that this is a very perverse system, because banks are not lending to the private sector.
You have a huge crowding out process where the banks basically are intermediaries between depositors, regular people, company, you name it, and the central bank. So this needs to change for sure, because otherwise it won’t work. But how do you basically, you change the system? It’s very complex. It’s not that easy as to say, for example, okay, I’m going to liberate everything from one day to the other, because if you’re the president of the country, you need to make sure that you’ll be able to remain as president the other day.
Otherwise you would get, for example, I don’t know, a communist dictator. That could happen. So it’s a pretty complex situation. So that actually helps me formulate what I have in my head and also why I live in Israel. And you and I worked on a book together. I was not a co author, but I was a research helper, the liberal case for Israel. And one of the reasons that I live here is that I see, and I could be wrong, I’m just a human, but I do see that everyone is headed into this impossible situation that Argentina is very deeply in right now, and the US is headed there, whether it’s slow, whether it’s fast, but it’s the same mechanism that we agree us.
If the dollar ends up in the situation, which I think it will, then you’re talking about not just Argentina, but the entire world collapsing into lawlessness. And the reason that I’m here is that I do think this is going to happen. I call it the end game, and each country is going to have to rely on the best parts of its culture to pull it through. Right? So I’m imagining in my head, this is what comforts me, and I hope I’m right, that there’s going to be a reset.
The shekel is going to die, the dollar is going to die, there’s going to be no functional currency. But then at that point, the people of each country are going to have to come together. It doesn’t have to be an entire country like the borders of Argentina. They’re just arbitrary. But whatever communities can hold together and get through this by helping each other and saying, okay, fine, the price system is gone.
Now we have to work together on our new price system. We have to totally restructure the economy, and we’re going to have to rely on whatever cultural values we had from before all this to fall back on and get us through. And I think Israel has the best chance of not descending into complete lawlessness, whereas I think parts of the US won’t. But when I look at places like New York, Chicago, La, those places and areas close to looking, I’m looking at something horrible, and I don’t want to be anywhere near there.
I get your point. I get your point. Well, of course, Israel’s society is incredibly resilient. So facing that scenario, I think, of course it would survive. I get your point. Now, I think that this complete collapse, it would take really a tipping point situation, right? Now. I know that you are seeing that that’s a possibility. I think it is a possibility. I don’t think it is extremely likely, but what do I know? I don’t know, as you said.
But what I’d like to discuss with you is that there is one specific point, which is, I think, the key to the entire situation, which this paper, this famous paper, some unpleasant monetarist arithmetics, which was written by, I think, Kidland and Prescott a few decades ago. Excuse my English. Your English is delicious. Thank you. I do what I can in Spanish is better. But what happens is that at some point, basically, the central bank, if it wants to reduce the rate of inflation according to regular mainstream monetary policy, basically it increases interest rates, takes money out of circulation.
Okay, so basically, that would be the idea. But at some point, in order to do that, pays interest, right? But at some point, the interest it pays reinforces inflation. That’s the inflection point. And so what happens in Argentina, what happened, and what still happens today is that at some point, the market does not believe that you will be able to pay both the capital and the interest and demands a higher interest rate to live the money in those central bank liabilities.
Then you start a positive feedback loop. Exactly, that is correct. So basically, what’s the other side of the equation? In Argentina, it’s the value of the foreign exchange, the dollar. So the rate of devaluation is what most interests you rather than the inflation rate. In what sense? That if you’re an investor, you want to get a return in US dollars for a specific instrument. So you don’t care if the inflation rate is 100% as long as the devaluation rate is below the nominal rate that you are getting for your investment.
So let me give you an example. You could get, for example, 70% rate, nominal rate, right? For holding a specific central bank instrument, you get a devaluation rate of 50%, but an inflation rate of 100%. So what happens? Most people could tell you, well, but central banks, the central bank actually is reducing the debt in real terms because it’s paying a lower nominal rate than the inflation rate.
But devaluation rate, you mean devaluation relative to the foreign exchange, the peso against the US dollar. Okay, so you could say, well, but if the devaluation rate is, let’s say 50%, right, and the inflation rate is 100%, then in a sense, although you are paying 70% nominal rate for your central bank instruments, in which case you are paying an interest rate which is below the inflation rate, your debt is increasing in real terms.
And for you as well as an investor, it pays to stay in those instruments because you don’t want pesos. In the end, what you want is US dollars. And again, if, let’s say the nominal rate that you get is 70% and the devaluation rate is 50%, you are making 20% in dollars, which is a lot of money. So that’s the game, basically. The game that it’s always played in Argentina is basically a carry trade game.
So where you get short term with pesos or peso bearing instruments or paper in order to get more dollars that you got in in the first place. Of course, this will not end up well because it’s an unsustainable system. The market would arbitrate it instantly. You wouldn’t have these crazy rates going on around if you wouldn’t get this central bank or a central planner trying to. Yes, but then again, you said if we tried to untie it all in one shot, you’d end up with.
Exactly, exactly. So that’s why I think that what they’re trying to do, Milay, is basically to swap or to prepare the terrain for a huge swap or restructuring of the debt, both of the central bank and the treasury. But of course, the central bank debt is more important because it’s very short term, very short maturity. And at the same time, it’s the one that is creating the inflation rate, because the inflation rate is created by the rate that the central bank is paying.
I hope your audience will not get confused with all of this, but basically, that’s what’s going on. The core element is based on an FTL nanoprocessor with 25 bilateral kellilaterals, with 20 of those being slaved into the primary Heisenfram terminal. Now, you do know what a bilateral kellilateral is, I hear a lot, especially among the conspiratorial crowd, which I’ve become part of since 2020, because that’s just the people who were listening, and especially with the scary stuff that went on with all the medical, et cetera, that I don’t really want to talk about.
That changed my life, and I’m sure it changed yours, too. A lot of them are very suspicious. They don’t come from a rothbardian economics background or anything like that. They don’t even come from libertarian backgrounds. Mostly. They saw what happened in 2020, and they’re like, you see, the world is flat. We didn’t land on the moon, blah, blah, blah, whatever, and those kinds of things, right? And I don’t blame them, because what can you trust after that? They are trying to convince me that Milay is like a world economic forum plant and that he has really evil intentions or that he’s just part of the game and he’s trying to fool everyone.
He’s really like Klaus Schwab in a costume, whatever it is, they say, I don’t know. I’m taking it to an extreme. But they don’t trust the guy. How did he just come out of nowhere? A rothbardian anarchist, he calls himself, who values Judaism. Like, what the hell is going? Well, the story of Milay basically is a very spontaneous order, organic history story. Now, why? Basically, because argentina is a country that has tested everything, every type of statism, inflationism, whatever you want to call it.
We tried it. So suddenly appears this guy that has a different idea and become this important international figure. I mean, it’s amazing that they know the name, right? It’s very important. This is a very important factor for other people. They say, okay, so it’s a very interesting person, or what a character. But in this case, something is really different about him. And what is it? I think that unlike most libertarians and most pro market people, he speaks of the market economy and economic freedom, and freedom as such, with such an enthusiasm that he basically paints the economic freedom as a sort of utopia.
It’s never presented as such, and it’s never presented with such a conviction by a prominent figure. It’s always, well, you have some statism and some intervention, and suddenly you have this guy that tells you, no, we need free market anarchism. It’s the best system. And he fights everyone that is against what he’s saying. And he’s doing so with such a belief that he’s like. I think that’s the main thing that differentiates him from others.
In Argentina, this is very important because it’s a very left wing country, and people have really bought into the idea that the government is the solution for every problem. And so you have this guy, even though their lives keep getting worse and worse and worse. Exactly. So it’s getting worse. So we need more of the same. Basically, that’s the reasoning, because the fundamental axiom, the primary argument, is never objected, which is, no, the government is not the solution.
The government is the problem. But nobody says so out loud. And so this guy appears and he says, no, you’re all insane. We don’t need government. It’s not that we need less government. We don’t need government at all. Government is the source of all our problems. It has always been. And so he appears in a show, primetime television, one day and then two days in a row, and then he’s everywhere, and people demands that he gets into politics, and he’s reluctant to do so first.
But then he’s convinced, and he says, well, I need to do so, because the cultural battle takes one only so far. You need to go to the next step. But of course, it’s very dangerous, because if he’s not finally able to untangle the entire problem, that is the argentinian political and economic system, basically, he could end up harming the ideas. That’s what some people say. But at the same time, if you don’t get into the political arena, your ideas will remain in books and nothing will eventually get done.
And one more thing, if the idea is to wait for the entire system to collapse, at that point you could also get the other possibility, which is a more strict and horrible totalitarian dictatorship on the communist side or on the fascist side. You never know what I’m trying to say is that it’s not necessary that you will get a free market or a freedom based system. Right. We’re dealing with very dangerous situation here.
Yeah, exactly. Now, so to answer the question, basically, he’s a very particular, very interesting person that he got elected because people trust him. They see in him something that they have never seen in any other politician, which is someone that’s being honest and truthful and speaks from the heart, basically. And I think that’s what everyone sees in this guy. You listen to how milet talks and you say, I can relate with this guy.
He’s not a regular politician. So that’s how he got elected. Now, with respect to the World Economic Forum and stuff, it’s nonsense, basically. I mean, if you’re a libertarian, if you’re a libertarian, the first thing that should be, I think in your mind should be that it’s absolutely impossible to centrally plan an economy. If that’s impossible, imagining about centrally planning the entire world doesn’t make any sense. Now, you could get some idea of specific conspiracy, but what is a conspiracy? It’s some people trying to plan something on a big scale.
Right. In order to achieve a specific result. For example, the american revolution was a conspiracy. The independence revolutions of each of the latin american countries was a conspiracy. Against whom? The spanish empire, for example. So, yes, conspiracies do exist. But if you are going to say that there is this worldwide conspiracy run by this guy in Davos or whatever, and that you are going to be the one that is going to be, let’s say, revealing everything from a YouTube video, and YouTube is run by this huge corporation, Google, I think they would cancel the video at some, you know, I’m a bit skeptical of thinking that there is such a thing as this huge conspiracy or whatever.
But yeah, that’s what I think about those people that you mentioned. Now, I’m not saying that there are no conspiracies or that there are no circles of power because that’s how it works. But I think at the same time that it’s a battle of lobies and some lobby contradicts with another. And so at the end, there’s no uniform, one guy on top of everything, control. Exactly. That’s right.
And so one more thing. What is it actually that some libertarians are objecting to Milay? That he’s in favor of Judaism, that he’s interested in Judaism, that he’s in favor of mean. So the problem is not about Milay. The problem is about those people who against. Why is it that Milay supports, let’s say, Israel. Why? In the face of which enemy? So, I don’t know. Perhaps they should be asking themselves those questions.
As bad as Israel is, and you know my opinions about Israel, I do live here, and it is still the most functional country by far. And the other countries around us are just getting worse and worse. Lebanon is hyperinflating. Egypt is hyperinflating. Jordan doesn’t have any water. Syria has been dead years, you know, or. And not completely dead. There’s still people there, but there’s no organized anything going on.
We’re going to have problems here, too. We are going to have hyperinflation. The shekel is going to die. Because the shekel is basically a dollar derivative, because the central bank of Israel only has dollars and a little bit of other. Forex doesn’t have any gold or silver or anything like that. And when it all goes kaput, we’re all going to have to go back to what made us all great.
And that’s why I’m here. And that’s why I think you should come, too. Come back to your family. I know you’ve been considering it, but I would love to see you. I’d love to have you here for Shabbat and meet your family. It would be great. We’ll meet Rafi. Okay. Have a good time in London. I wish you the greatest success in your PhD. And I’m really looking forward to seeing you over here in Israel.
Thank you so much. And all best wishes for you and your family as well. And if you would like to support my work and what I do on this channel, then consider buying a dirty man. Safe use code. Endgame ten at checkout for 10% off. I don’t believe all of your gold and silver should be stored underground, but I do believe a certain portion of it should, because that will be the easiest to access in an endgame scenario.
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See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.
