Sharing Real Facts Within a Surreal Financial System
In this brief MAMChat, Matterhorn principals Egon von Greyerz and Matthew Piepenburg exchange thoughts on the real vs. surreal financial system. They specifically address the blunt reality of unimaginable debt levels, tanking GDP growth, rising inflation, negative-yielding bonds and declining consumer sentiment against a current environment of engineered market highs, SPAC and crypto mania and the semantic fantasy of policy makers pretending inflation is “transitory” rather than an unspoken and deliberate necessity.
Toward this end, Egon touches upon the darker side of SPAC “value pumping” emblematic of the South Seas bubble while reminding investors of quantifiably dangerous valuation multiples on the current S&P alongside equally fatal margin debt levels.
Matt then revisits the hard math rather than clever Fed-speak of the “inflation debate” by addressing cost-of-living adjustments and the embarrassing reality behind public debt levels whose interest expense alone exceeds national tax receipts. Given such realism, do central bankers have any choice but more currency-killing monetary expansion to pay for otherwise unwanted government bonds?
But how and when will the lessons of objective debt and risk-asset bubble realities overshadow the current and surreal illusions? Egon addresses the additional and latest fantasy of an “orderly” reset ahead, concluding that it will be anything but orderly and involve dramatic inflation to deflation cycles which cripple already broken currencies. Gold, of course, is the ultimate reality-check and anti-dote to these painful cycles, and as both Egon and Matt remind, can’t be measured in currency price forecasts, when the very currencies used to measure gold’s “price” are declining in value with each passing day.
Watch the video on YouTube here
About Egon von Greyerz
Egon von Greyerz
Founder and Chairman
VON GREYERZ AG
Phone: +41 44 213 62 45
VON GREYERZ AG global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. VON GREYERZ is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 90 countries.
Articles may be republished if full credits are given with a link to VONGREYERZ.GOLD
The Worst Time for Yet Another Grotesque Stock Bubble…
In this critically important Gold Matters discussion, VON GREYERZ principals, Egon von Greyerz and Matthew Piepenburg, place the enormous risks of the current U.S. equity bubble within the much-needed context of unprecedented global economic factors.