#740 The Ultimate Bitcoin vs. Gold Debate w/ Peter Schiff & Peter McCormack

— Inflation measurement: Schiff argues the CPI methodology is deeply flawed; if measured using 1970s standards, he estimates 2021 inflation was 13–15%, far above the official 6.2% figure.

— Federal Reserve policy: Powell's renomination was the "coward's way out"; the Fed must continue printing money to prevent interest rates from rising and destabilizing the bubble economy.

— Government spending and moral hazard: Build Back Better programs will cost far more than projected because demand increases when items become free (e.g., preschool tuition will spike; paid family leave will be overused).

— Social Security as a Ponzi scheme: The system is an intergenerational transfer already drawing down trust funds; it's unsustainable without continued Fed money printing.

— Bitcoin versus gold as store of value: Schiff maintains Bitcoin has no intrinsic value, only price driven by speculation; gold has industrial and jewelry uses, plus centuries of historical precedent.

— Bitcoin-backed loans: McCormack argues they are superior collateral to real estate because they are divisible, liquid, and mark-to-market in real time; Schiff counters that mass liquidation during a 50% drawdown creates systemic risk.

— Diversify beyond fiat: Store value in non-U.S. equities (especially mining companies), real estate, and assets that benefit from inflation; avoid bonds and paper currencies that lose purchasing power.

— Monitor margin call risk: If you hold Bitcoin-backed loans, understand that a 30–50% drawdown could trigger mass liquidations; borrowing against volatile assets for consumption (cars, vacations) amplifies vulnerability to sudden price swings.