Economist Explains Why Gold Is Beating Bitcoin | Bob Murphy - The Pomp Podcast Recap
Podcast: The Pomp Podcast
Published: 2026-01-28
Duration: 31 minutes
Guests: Bob Murphy
Summary
Bob Murphy, an Austrian economist, examines why gold has outperformed Bitcoin recently, focusing on economic policies and the current state of the U.S. economy. He discusses Federal Reserve actions, tariffs, and the future of stablecoins.
What Happened
Bob Murphy, a senior fellow at the Mises Institute and chief economist at Infineo, discusses recent economic trends with Anthony Pompliano. Gold has outperformed Bitcoin lately because it is perceived as a safer asset during times of uncertainty. Central banks, such as those in China and Russia, have increased their gold reserves, while the U.S. reserves remain unchanged, emphasizing gold's ongoing relevance.
Murphy delves into the tension between the Federal Reserve and the White House, noting criticisms exchanged between both parties. The Fed's substantial holdings of treasury securities highlight its significant role in U.S. economic policy, especially with a military budget requiring deficit financing. Murphy questions the Fed's independence, suggesting its historical ties to financing government wars.
Tariffs were expected to drive inflation, but the opposite occurred, defying traditional economic predictions. Murphy suggests that tariffs, trade deficits, and inflation are interconnected, with complex outcomes not always aligning with conventional wisdom.
Stablecoins have gained prominence in the crypto market, with Tether holding substantial U.S. treasuries. Murphy warns of the potential for $6 trillion to exit the traditional banking system if Congress fails to address stablecoin loopholes.
He critiques the Genius Act, which requires U.S.-based stablecoin issuers to have 100% reserves but allows them to hold T-bills instead of actual currency. This could create a false sense of security among the public.
Murphy expresses skepticism about the accuracy of official government economic data, suggesting it can be manipulated. He points out that inflation figures may underestimate the actual price increases experienced since COVID-19.
Key Insights
- Gold has recently outperformed Bitcoin as central banks, including those in China and Russia, have increased their gold reserves, while U.S. reserves remain unchanged, highlighting gold's perceived stability during economic uncertainty.
- The Federal Reserve's extensive holdings of treasury securities underscore its significant influence on U.S. economic policy, particularly with the military budget relying on deficit financing, raising questions about the Fed's independence.
- Contrary to traditional economic predictions, tariffs did not lead to inflation, suggesting a complex relationship between tariffs, trade deficits, and inflation that does not always align with conventional economic wisdom.
- Stablecoin issuer Tether holds substantial U.S. treasuries, and there is potential for $6 trillion to exit the traditional banking system if Congress does not address stablecoin regulatory loopholes, which could destabilize the financial sector.