Matthew Pipenburg: This is the Last Bubble... And It's Global

Tom welcomes back Matthew Pipenburg from Von Greyerz Gold Switzerland to discusses the economic climate. Matt emphasizes the importance of understanding historical context and separating facts from biases. He believes that common sense reveals issues in various markets, leading to a potential debt crisis causing inflation and currency destruction. Trust is also eroding, particularly in US Treasuries and the US dollar narrative. He advises preparing for these changes as they're already happening.

Matt discuss the comparison of current debt levels with those after World War II, acknowledging significant differences: America moving from a creditor to a debtor role. Raising interest rates to combat inflation is less effective when public debt reaches unprecedented levels. Central banks cannot export inflation like they used to, making such actions impossible without causing unpayable interest expenses. Alarming trends in bankruptcies, unemployment, and overvalued markets are evidence of economic instability due to unsustainable debt levels.

Matt also discusses the risks associated with junk bonds, including their inability to refinance at higher interest rates and potential defaults. High yield bonds offer little yield for significant risk. Private credit pools, which hold bad loans, are a major concern due to their lack of transparency and potential value distortion.

Central banks' shift towards gold as a savings instrument is discussed, with physical gold replacing U.S. Treasuries as a reserve asset. Central banks in the East have been net buyers of gold since 2014. Matt advises individuals to save in gold instead of the US dollar for long-term value preservation. Gold significantly outperforms various assets in relation to U.S. Treasuries, making it an attractive hedge against inflation and debt.

The conversation concludes with Matt emphasizing self-education, forming opinions on the current economic climate, and considering long-term investments in real assets and commodities, particularly physical gold as a hedge against inflation and debt.

Time Stamp References:
0:00 - Introduction
0:50 - Reality, Facts, & Trust
6:10 - Hard Assets & Recency Bias
12:43 - Debt & GDP Risks
18:52 - Bonds & 'High' Yields
23:25 - Mark To Market & Risk
28:43 - Market Liquidity & Flow
32:50 - New Currencies & BRICS
42:14 - Dollar Trade & Metrics
48:25 - Perception of Gold
56:38 - Risky Assets & Yields
1:02:25 - Optionality & Speculation
1:06:58 - Miners & Other Plays?
1:12:38 - Equity Risk & Value
1:19:09 - Wrap Up

Talking Points From This Episode
- Historical debt levels reveal economic instability; prepare for potential crisis.
- Junk bonds present risks of refinancing and defaults.
- Gold emerges as an excellent savings instrument and hedge against inflation.

Guest Links
Twitter: https://twitter.com/GoldSwitzerland
Website: https://goldswitzerland.com/
Articles: https://signalsmatter.com/
Book (Amazon): https://tinyurl.com/pvpfmy8c

Matthew Piepenburg is a Partner of Von Greyerz and the author of the popular book, "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 behavior of risk assets are published regularly at SignalsMatter.com.