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Debt, Inflation, War & the Incontrovertible Case for Gold

October 25, 2023

In this extensive conversation with Cambridge House CEO, Jay Martin, Matterhorn Asset Management partner, Matthew Piepenburg, shares his insights on the historical interplay of war, over-indebted nations, broken bond markets, currency debasement and their inflationary consequences, all of which lead toward (and confirm the importance of) physical gold investing.

Martin and Piepenburg step back from the near-term shock of headlines from the Middle East to address the broader issue of war as a component of deteriorating debt and financial conditions. Piepenburg addresses clear evidence of political, financial and social fracturing in the world in general and the US in particular. Unfortunately, such stress-points are part of an historical pattern that often involves the evolution of military conflicts, the risks of which are expanding daily. Particular attention is given to specific signs (economic, political, and social) that the “American empire” is experiencing a clear and downward turning point.

An open symptom of this decline is the post-sanction rise of the BRICS+ nations and the ever-increasing evidence of a shift from a USD-driven mono-polar world to a multi-polar, real-asset-driven world. Piepenburg offers a number of reasons (in currency, energy, credit and trade circles) why this foreseeable trend away from USD hegemony will continue despite the still obvious power/supremacy of the world reserve currency. Ultimately, Piepenburg maintains that currency debasement is the inevitable end-game.

The conversation then turns to what Piepenburg describes as the “absurd” notion that inflation has been contained. He offers numerous and compelling arguments as to why inflation is rampant and growing rather than controlled or defeated. The overt as well as hidden evidence of a recessionary trend toward more synthetic liquidity, and hence inflation, are unpacked in detail. All of this is derived from unimaginable sovereign debt levels which ultimately demand monetization as the Fed loses control of grotesquely inflated bond markets. As more “fake money” is created to “save” these sovereign IOUs, the collapse in purchasing power and hence the case for gold becomes incontrovertible.

Gold Switzerland

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Matt began his finance career as a transactional attorney before launching his first hedge fund during the NASDAQ bubble of 1999-2001

Thereafter, he began investing his own and other HNW family funds into alternative investment vehicles while operating as a General Counsel, CIO and later Managing Director of a single and multi-family office. Matthew worked closely as well with Morgan Stanley’s hedge fund platform in building a multi-strat/multi-manager fund to better manage risk in a market backdrop of extreme central bank intervention/support. The conviction that precious metals provides the most reliable and longer-term protection against potential systemic risk led Matt to join VON GREYERZ.

The author of the Amazon No#1 Release, Rigged to Fail, Matt is fluent in French, German and English; he is a graduate of Brown (BA), Harvard (MA) and the University of Michigan (JD). His widely respected reports on macro conditions and the changing behaviour of risk assets are published regularly at SignalsMatter.com.