Greg Foss, in an interview with Kitco News, reacted to US Federal Reserve Chairman Jerome Powell’s recent statement that the US banking system is safe and sound. Foss expressed his lack of confidence in the Fed, saying that in the conditions of the banking crisis, there is a high probability that the chain of bank defaults will continue. According to Foss, there is at least $10 trillion of banking capital in the world, and it could literally be destroyed if the system fails. Even if large financial institutions can get help, shareholders will suffer big losses.
The head of Validus Power believes that investors are better off focusing on “hard assets”, namely real estate, gold and bitcoin. So investors will be able to save funds in the event of a “collapse of the fiat currency basket.” Foss advises not to get rid of gold to buy bitcoin, suggesting instead to sell some of the bonds in the portfolio:
“If a person does not have bitcoins, he takes on big risks of losing what he has accumulated. Bitcoin is a free and open market, while the fiat currency market is manipulated by puppeteers like Jerome Powell.”
Recently, the former CEO of the BitMEX exchange, Arthur Hayes, suggested that bank failures could affect bitcoin. Hayes believes that bitcoin has many more advantages over investing in gold and real estate.
Source: Bits
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