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Bubble Markets and Reversion to the Mean

Politicized Money and The Death of Capitalism

How We Got Here and Where We Are Going

People like myself and others have been speaking for months that what is happening in our stock and bond markets right now, and the global economy in general, is not your garden variety correction like the Dot-com Bubble 2001 or the Financial Crisis of 2008 where the government and Federal Reserve ride in on their white horse and make everything good again. It truly is different this time.

I have written many blogs, filmed videos, did Facebook lives and in person seminars to spread the word to as many people as possible so that they could be spared the carnage of their life savings when the real rubber hits the road. Bottom Line this time in history reminds me of an old Bachman-Turner Overdrive song, “You Ain’t Seen Nothing Yet.” The worst is yet to come and as you read this it appears all but inevitable.

That is why I bring you the full article written by Matthew Piepenburg from and Matterhorn Asset Management. When I read this article this weekend, I was pleased to see a large and highly respected investment firm stating what most in the mainstream don’t.

Some of the terms used aren’t everyday lingo so below I put in bullet point the basis of what they say but I encourage you to read it as the more education people get the better off you are to make wise decisions.

How we got here:

· Central bankers have printed so much money that they have devalued it’s worth and lost the faith of the investment community.

· The major fiat currencies are the Euro, the Yen and the World’s Reserve currency, the US Dollar. (ps: the Cdn dollar is fiat as well and is just as debased as the three big ones)

· All three of these have been grossly mismanaged creating a $300 Trillion Dollar debt pool.

(side note- a million seconds equals 11 ½ days while a billion seconds equals 31 ¾ years, but a trillion seconds is equal to 31,710 years. Translate that to paying off debt!)

· Central bankers are desperate, political and directly responsible for pushing all currencies off a historical cliff.

· They created an extreme over-valuation in stocks, bonds and real estate while discrediting their currencies to accomplish this.

· Central bankers will do whatever it takes to postpone the fatal fall which they alone have caused. Their playbook is about artificial and centralized control (financial engineering) rather than the natural supply and demand forces or honest, free-market pricing, hallmarks of normal capitalism.

· When will central bankers realize they can’t keep an over bloated bubble alive forever just to save their political career?

· They are now running out of intellectual, monetary and policy bullets.

What they are doing now:

· They are raising rates to fight inflation and doing quantitative tightening (QT), which is trying to decrease the money supply they have so grotesquely created.

· These actions should continue to hit the stock and real estate markets which will likely lead the bankers to reverse course creating more inflation as free money re-enters the economy and likely cause the US Dollar to fall which would make gold the last currency worth it’s weight.

  • We could be heading back to a gold standard, one only has to look at the rise of the Russian ruble to see the power of gold backed currencies versus ones that aren't which are called "fiat" currencies that I mention above.

That is my summary of what is in this article but please read it for yourself as you are sure to pick up some nuggets I never mentioned. Politicized Money & The Death Of Capitalism | ZeroHedge

Or, as the last paragraph of the article states, “Timing market tipping points and speculating upon central bank policies has its imperfect role and place, but in the end, history (and gold) always gets the last say (and laugh) at politicized financial systems and a “capitalist” economy as openly broke (and broken) as the one empirically described above.”


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