Markets & Main Streets Are “Suffering from the Sins of Our Central Bankers”

By Matthew Piepenburg

Partner

July 20, 2023

In this lengthy discussion with Ivor Cummins of Ivor Cummins Science, Matterhorn Asset Management, AG Partner, Matthew Piepenburg, speaks intentionally broadly of the macroeconomic, debt and currency risks to a new yet data-curious audience otherwise less familiar with financial markets and risks. For those just entering such economic topics, Piepenburg covers many, but by no means all, of the core themes now shaping global markets in a common-sense and refreshingly straight-forward manner.

Piepenburg opens with a brief description of his own road to precious metals paved by concerns over rising debt, market, banking and currency risks. The conversation begins with the critical dynamic of unprecedented debt levels “solved” with “mouse click money.” Piepenburg unpacks this fantasy, as well as the dramatic consequences and dangers of such a “solution,” which includes equity melt-ups followed by dramatic melt-downs, all driven by signals from a misunderstood bond market.

He describes the current political landscape of mis-managed policies as one in which nations operate with a “bus-boy’s salary yet Ferrari appetite.” In short, the historical disconnect between global debt and income/productivity levels creates delusionary levels of disfunction across numerous settings, including currency devaluation/debasement, market deformation (in bonds and stocks), social unrest (wealth inequality) and finally: increased centralized controls (i.e., CBDC) at the expense of private rights/freedoms—themes which Piepenburg addresses broadly yet directly and with historical/cyclical evidence as well as personal experience.

Ultimately, Piepenburg advises listeners to never abandon their own judgement, but reminds that each individual is uniquely responsible for informing their that judgement by considering as many facts, cycles and even contrary opinions as possible. In the end, Piepenburg’s own informed opinion boils down to this: Western economies are objectively broke, illiquid and trending within/toward a deflationary recession which will eventually be “saved” at the expense of increasingly mouse-clicked and debased currencies in an inflationary end-game for which physical gold is one obvious antidote.