We study Billionaires and this is episode 114 of the Investors Podcast.

Broadcasting from Bel Air, Maryland. This is the Investors Podcast.

They'll read the books and summarize the lessons. Don't test the waters. Tell you what it's called.

They'll give you actionable investing strategies.

Your host Preston Pish and Sting Broderson.

Hey, hey, hey, how's everybody doing out there? This is Preston Pish and I'm your host for the Investors Podcast.

And as usual, I'm accompanied by my co-host Sting Broderson, out in Seoul, South Korea.

Today's show is the second part interview with Will Renown author Jim Ricketts about his new book, The Road to Ruin.

We got a continuum where we're left in the previous episode talking about financial history and Preston you have the first question.

I love your conversation in your book where you're talking about the difference between the Fed's blunder of raising rates back in 1928 and what's happening today.

And I wanted to give you this opportunity on the show to talk about this difference between those two time periods.

Well, the point I was making is that because the Fed was created in 1913, didn't really get off the ground until 1914.

It took almost a year to make the appointments and get the institution up and running couldn't do whatever night.

So kind of started then. And of course, here we are in 2016. The Fed just celebrated their 100th anniversary a couple of years ago.

And you look at one financial cataclysm after another and almost all of them can be attributed to the blunders and discretionary monetary policy.

I don't want to point a finger at the Fed, but they do control the money and these are monetary systems.

And so you have to hold into a cow. But of course, what happened in 1928, the US was having enormous inflows of gold.

Now at the time, we were on a gold standard. Now it didn't mean that there wasn't discretionary monetary policy.

There was and that's something that's not well understood.

People think you have a hard and fast gold standard and you have fixed money supply and every dollar can be turned into a certain amount of gold.

A fixed conversion ratio or vice versa. And that's what a gold standard is. And then when you get to the monetary policy, we get to if we got money without a gold standard, it's just the Federal Reserve and they print money and sometimes they reduce the money supply and that's that.

They act as if those two things can't coexist, but they can coexist and they did coexist through most of the 20th century.

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