Much Harder Landings and Centralized/Inflationary Policies Ahead

By Matthew Piepenburg

Partner

August 24, 2023

In this brief yet engaging conversation at the recent Rick Rule Symposium in Florida with Charlotte McLeod of Investing News Network, Matterhorn Asset Management partner, Matthew Piepenburg, calmly separates harsh realities from BRICS hype with regard to the de-dollarization themes of 2023.

After a brief discussion on Piepenburg’s path to precious metals and role at Matterhorn, the conversation turns to Piepenburg’s understanding (and prioritization) of risk management and wealth preservation. Piepenburg sees the lack of such risk thinking as a central concern and open threat to personal wealth in a current backdrop of artificially elevated markets and herd-buying/chasing of unsustainable market tops. 

Equally ignored is the hidden risk of currency debasement slow-dripping in real time as debt levels cross the Rubicon of sustainability. Piepenburg argues that “soft-landing” narratives of late are far too soon to call, and that evidence of current and pending “harder landings” are all around us.

Piepenburg keeps it simple. If we assume the US will not allow sovereign bonds to fail or deficits to contract, we can easily foresee more synthetic liquidity, and hence inflation, as the longer-term endgame.

Piepenburg also addresses the “horrifying” profile and slow rollout of CBDC in the years ahead.

As to the BRICS narrative and the rising headlines around a gold-backed trading currency emerging from the August BRICS conference, Piepenburg is far less sensational. Despite his open concerns for the USD and the clear evidence of post-sanction de-dollarization trends, he is not holding his breath for any immediate and gold-backed trading currency to de-throne the USD. Instead, Piepenburg foresees rising inflation forces, continued currency debasement and increasing evidence of centralized controls over our personal and financial lives—all of which make a strong case for owning physical gold outside of the global commercial banking system.