Professional trader and chief market strategist of BubbaTrading.com Todd ‘Bubba’ Horwitz has criticized the current fiat currency system as fraudulent while blaming Federal Reserve policies.
Speaking in an interview with Stansberry Research on Sept. 9, Horwitz said the Fed and the government are responsible for fraud primarily through taxation without representation. He also criticized the two entities for exploiting citizens through taxation, but they do not make money, which results in the devaluation of the dollar.
“We have so many inflation problems that we are going to have a food shortage. The dollar is continuously manipulated downward, the fiat money system is fraudulent. When you look at the big picture, it’s really about taxation without representation. The two organizations that run this country, the government and the Federal Reserve, don’t make money, they don’t create anything. They pass everything on to the taxpayer,” Horwitz said.
Role of fiat in driving up inflation
According to Horwitz, the mismanagement of the fiat system is responsible for soaring inflation while calling on investors to prepare for a market crash.
Horwitz, who has about four decades of trading experience, noted that the market crash would be temporary.
“I can’t worry about the market collapsing. I think it’s okay, but I think it’s going to come back. You need to be prepared for what’s to come and not be too leveraged in a market where you’re forced to sell. This is where most people run into trouble,” he added.
Potential of cryptocurrencies to replace fiat
Notably, against a backdrop of rising inflation and devaluation of currencies like the dollar, there have been several calls for cryptocurrencies to replace the current monetary system. As the crypto sector grows, proponents have pushed for assets like Bitcoin (BTC) to act as the official medium of exchange.
It is worth mentioning that jurisdictions opposed to declaring Bitcoin as a medium of exchange choose to conduct research on Central Bank Digital Currencies (CBDCs).
In that line, as reported by Finbold, research from blockchain company Ripple (XRP) has indicated that more than 70% of global financial figures believe CBDCs are the future of fiat currency and will take the front of the scene over the next five years.
Watch the full interview below:
Featured video via MoneyShow YouTube