Yes Russia Is Now Allowing Payments In Gold For Its Natural Gas As Western Financial System In Open Decline

Yes Russia is now allowing payments in gold for its natural gas as the Western financial system is in open decline.

Western Financial System Now In Open Decline
March (King World News) – Matthew Piepenburg at Matterhorn Asset Management (based in Switzerland):  The Western financial system is now in open decline.

From Rigged to Fail to Just Plain Failing
Just two years ago, I wrote a book warning that Western markets in general, and US markets in particular, were Rigged to Fail. 

Well, now, in real time, they are failing.

This hard reality has less to do with COVID or the war in the Ukraine and more to do with one simple force, which euphoric markets and clueless leaders have been ignoring for decades, namely: Debt.

As I wrote then, and will repeat now: Debt destroys nations, financial systems, markets, and currencies.

Always and every time.

As we see below, the inflationary financial system is now failing because its debt levels have rendered it impotent to grow economically, react sensibly or sustain its chronic debt addictions naturally.

The evidence of this is literally everywhere, from the Fed to the Petrodollar and the bond market to the gold price.

Let’s dig in.

The Fed: No Best-Case Scenarios Left
The Fed has driven itself, and hence the U.S. markets and economy, into an all-too predictable corner and historically dangerous crossroads.

If it turns to the left (i.e., more money printing/liquidity) to protect a record-breaking risk asset bubble, it faces an inflationary flood; if it turns to the right (and raises rates or tapers UST purchases), it faces a market inferno…

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How did we get to this crossroads?

Easy: Decades of artificially suppressed rates, cheap credit and a $30T sovereign debt pile of unprecedented (and unsustainable) proportions.

The Dying Bond Bull
With so much of this unloved debt on its national back, no one but the Fed will buy Uncle Sam’s IOUs. 

As a result, long-dated Treasuries are falling in price and rising in yield as Bloomberg reminds us of the worst drawdown for global bonds in 20 years.

In short, the central-bank created bond bull of the last 40-something years is now falling to its knees. 

Ironically, the only path to more demand for otherwise unloved bonds is if the stock market fully tanks and stock investors flee blindly back into bonds like passengers looking for lifeboats on the Titanic.

Bonds & Stocks—They Can Fall Together Unless Saved by Debased Dollars
But as the “Covid crash” of March 2020 painfully reminded us, in a world of central-bank-driven bubbles, historically over-valued stocks and bonds can and will fall together unless the Fed creates yet another multi-trillion-dollar QE lifeboat, which just kills the inherent strength of the dollar in your wallet.…..More Here

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