Keith Weiner

Founder and CEO of @Monetary_Metals, Economist, Specializing in gold, money and credit

[Keith Weiner @RealKeithweimer]

If you buy gold/silver/bitcoin, and it doesn't generate income, then you will have to sell one day.

If it generates income, then that's a game changer.

@Monetary_Metals pays interest on gold and silver. Currently offering 12% silver interest on silver.

[Keith Weiner @RealKeithweimer]

Mainstream economics, meet business enterprises.

In the real world, R>I. Return on capital must be greater than cost of capital (interest). Or else.

13/13

[Keith Weiner @RealKeithweimer]

When interest drops then, all else being equal--ceteris paribus--the same business can go from not-profitable to profitable.

The interest rate dropped a lot. Over 4 decades.

Every business added lots of capacity due to this.

4/13

[Keith Weiner @RealKeithweimer]

And if it's not possible to sell it, you'll have to close the business.

What do all these scenarios have in common?

Businesses either don't add capacity in response to market demand. Or even *reduce* capacity.

Is this what mainstream economics products?

12/13

[Keith Weiner @RealKeithweimer]

Borrowing cost matters, because businesses borrowto finance new production lines, new stores, new trucks or ships, new mines or wells. Anticipated net profits must be greater than total costs, including interest expense.

3/13

[Keith Weiner @RealKeithweimer]

Higher interest rates --> consumer prices. Here are some thoughts to clarify why, what happens at a mechanical level.

A 🧵

[Keith Weiner @RealKeithweimer]

Each time the interest rate ticked down--this happened many times from 1981 to 2022--every business was offered an increased incentive to add capacity to produce more. The incentive came in the form of reduced cost to borrow.

2/13

[Keith Weiner @RealKeithweimer]

The central planning agency has the power to ruin your business, or destroy your job.

Maddening to watch them promise more pain which will cause consumer prices to rise more!

[Keith Weiner @RealKeithweimer]

Why are investments quoted in dollars in the headline, and even where the price is given on local currency in the body, there is a parenthesis giving dollar value?

Why not yuan or rupee?

Inquiring minds want to know!

[Keith Weiner @RealKeithweimer]

I think it best to create regulation that has high up-front compliance cost to keep out startups, and rigidly encodes the business models of the big incumbents into law, to create a crony cartel.

Oh, not like THAAAT you mean?! This time will surely be different!

[Keith Weiner @RealKeithweimer]

Not the seriousness of the idea. The idea has been desperately tried by every desperately poor country, desperately trying to stave off the consequences of their desperate, impoverishing policies

Their *consideration* is serious!

[Keith Weiner @RealKeithweimer]

"Labor and only labor creates all val--wait, wut?!"

[Keith Weiner @RealKeithweimer]

What happened after they pushed up rates around then?