After a furious first week of trading in the month of November, it has become apparent that gold and the inflation tsunami are about to rock the world.
November 6 (King World News) – Matthew Piepenburg at Matterhorn Asset Management (based in Switzerland): The CPI measure of inflation is as bogus as a 42nd Street Rolex — everyone knows that on Wall Street. The BLS is a creative writing team. If you look at the real Chapwood Index or the way CPI was measured honestly in a pre-Greenspan period, we are already looking at 10%-11% inflation, truly, right now.
The other thing behind this being a ‘supply chain disruption,’ that’s a nice story, it does make it look ‘transitory.’ If the ports in Los Angeles and Long Beach ‘work 24 hours we’re going to get out of this’ — that’s wishful thinking because you are really looking at inflation driven by how inflation is defined, it’s by the broad money supply and the expansion of the money supply.
The Great Myth
Many people would say that QE or the expansion of the Fed balance sheet from $800 billion to $8.5 trillion hasn’t been inflationary because it’s contained within this wall between the Treasury, the stock markets and the Fed. But what they are ignoring is the fiscal elephant in the room that goes directly and indirectly into Main Street and the real economy.
Gold And The Inflation Tsunami
So the combination of staggering fiscal policy and monetary policy is having its inflationary effect and that’s not transitory, despite very legitimate arguments from the disinflation or deflation camp that economic slowdowns will be disinflationary. It can’t fight the tsunami of the broad money supply expansion. It can’t fight the tsunami effect of trillions and trillions of dollars of quantitative easing and trillions and trillions of dollars of fiscal policy in developing economies. Those are inherently and by definition inflationary.
And so it’s incredibly dishonest for policymakers to pretend that this is going to be transitory. The weapon they have, though, is the ability to control the information through conspirators like the Bureau of Labor & Statistics (BLS) to basically make up the inflation numbers as they go. And they’ve been doing that for years but you can’t hide what people see at the grocery store, the gas station. You can’t hide what people see in real life.
Gold Price Will Rip
And then when that inflationary reality becomes undeniable, gold will finally break the faith of this false monetary system and rip. There are all kinds of potential catalysts for gold to eventually rip and usually…to continue listening to this remarkable audio interview with Matthew Piepenburg CLICK HERE OR ON THE IMAGE BELOW.
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