Whited said increasing the money supply by 40 percent in a short period of time is going to make it less valuable and American money is definitely changing. He then asked Dowd what is happening with the dollar on a global scale.
Dowd said the dollar is the world reserve currency and it is a debt-based fiat system created through credit creation. When credit is flowing normally the dollar goes down or depreciates and when credit is drying up the dollar goes up.
He mentioned that the inflationary money printing has dried up and America is now going into a period of deflation with the money supply's year-over-year growth going negative for the first time since the 1930s and the fifth time since 1868.
The former Wall Street analyst said the previous four deflation periods were associated with financial panics and a look back at history also shows that there was a big inflationary period highlighted by speculations and busts.
"And so, what we see right now is a bust. And I've been recommending for the better part of the year – safety. It sounds counterintuitive, but inflation is going to be yesterday's news, deflation in financial assets is coming. So, cash is actually not a bad place to be," Dowd said.
"A lot of the smartest people I know are starting to go into cash and just waiting for the storm to pass and then do what JPMorgan would do: buy when there's blood in the streets."
Dowd pointed out that having cash and buying stocks lower is much better than putting your money into stocks that are going to go down 40 to 50 percent.
The financial analyst and author of the book "Cause Unknown: The Epidemic of Sudden Deaths in 2021 & 2022" also said buying three-month treasury bills (T-bills) or investing in government money market funds is a good move. (Related: The FOOLPROOF way to protect real assets from any financial collapse, currency collapse or economic apocalypse.)
Dowd noted that most financial professionals are confused as to what is going on, but he has a better idea of what is really happening. He mentioned that what the Federal Reserve did with Silicon Valley Bank and what the central banks did in Europe "basically put a finger in the dike, so things are going to appear okay for a month or two."
"They really didn't fix anything and we're gonna have this kind of slow, controlled implosion over the next year or two. So, I'm hoping it's not fast because anything fast creates panic and chaos which they can't control. So, I think they want to engineer a slow kind of demolition. And so, in the next couple of weeks, you may see the stock market rally, and everybody saying everything's fine, but it's not fine," Dowd explained.
Whited said people may look at the stock market with a little bit of fear and they may even go for gold and silver or something else to just sit out and then jump back in.
He added they may start buying real estate or stocks in the fourth quarter of the year or the beginning of next year.
Dowd said he has been telling people that if they have $401K and are worried about their retirement, it would be a prudent idea to raise whatever amount of cash they want and put it in a money market fund. He added that hearing the news the dollar is going to end or going to fail is the right time to buy.
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Watch the video below to know more about Edward Dowd's commentary on the current financial crisis.
This video is from the Flyover Conservatives channel on Brighteon.com.