BUCKLE UP: More Pain Ahead Is Setting The Stage For A Fed Pivot That Will Rock Global Markets

Investors need to buckle up because there is more pain ahead that is setting the stage for a Fed pivot that will rock global markets.

The End is Near: Trust in the US(D) Slowly Ends as the World Turns Quietly to Gold
August 21 (King World News) – Matthew Piepenburg, Partner at Matterhorn Asset Management:  It would be the understatement of the year to say that we live in interesting times, for we certainly do.

But despite the inevitable attacks of appearing sensational, un-American or just plain cynical, I feel a more appropriate phrase boils down to this: 

“We live in dishonest times.”
Below, I bluntly address the “Fed pivot debate,” the “inflation debate” and the USD’s slow global decline in the setting of a now multi-FX new normal in which gold’s historical bull market has yet to even begin.

These views are not based on politics, but economics, which for some odd reason, ought to still matter.

Let’s dig in.

The New Normal: Open Dishonesty
I recently authored a string cite of empirically open lies which now pass for reality on everything from the CPI inflation scale to the Cleveland Fed’s +1 real interest rate myth, or from official unemployment data to the now comical (revised) definition of a recession.

But the most recent lie from on high comes directly from the highest of all, U.S. President Joe Biden.

 Earlier this month, Biden waddled to his podium and prompt-read to the world that the US just saw 0% inflation for the month of July.

It’s sad when our national leadership lacks basic math or even ethical skills, but then again, and in all fairness to a President in open (and in fact sad) cognitive decline, Biden is by no means the first President, red or blue, to just plain fib for a living.

A History of Fibbing
We all remember Clinton’s promise that allowing China into the WTO would be good for working class Americans, despite millions of them seeing their jobs off-shored to Asia seconds thereafter. 

And let us not forget that little war in Iraq and those invisible weapons of mass destruction. 

Nor should we ignore both Bush and Obama’s (as well as Geithner’s, Bernanke’s and Paulson’s) assurance that a multi-billion-dollar bailout (quasi-nationalization) of the TBTF banks and years of printing inflationary money (Wall St. socialism) out of thin air was “a sacrifice of free market principles” needed to “save the free market economy.”

In reality, however, we haven’t seen a single minute of free market price discovery since QE1…

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Thus, Biden’s announcement that there was NO inflation for July is just another clear and optically (i.e., politically) clever lie among long history of lies. 

That is, he failed to clarify that although there may have been LESS inflation in July, this hardly means “no” inflation, as any American who has a bill to pay already knows.

Setting the Stage (Narrative) for a Fed Pivot
What the July CPI decline does achieve, however, is just another headline myth to justify an inevitable Fed pivot to more easy money by year-end (i.e., mid-term elections) or early 2023.

As we see below, the fiction writers, data-gatherers and fork-tongued policy makers in DC have already been gathering more official “data” to justify a Fed pivot toward more dovish money printing and hence more currency debasement ahead.

In addition to a decelerating CPI report, DC has also been checking the following, pre-pivot boxes to allow the Fed to get back to doing what it was truly designed to do, which is print money out of thin air to save the US Treasury market rather than working class citizens.…More Here

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