How Markets Tank and Gold Rises

The comments below are an edited and abridged synopsis of an article by Matthew Piepenberg

Critical warning signs from the credit and rates markets are being ignored by tough-talking experts while gold bides its time before it rises in a global financial crisis mathematically too sick to save.

How Markets Tank and Gold Rises - BullionBuzz - Nick's Top Six
Gold crown sitting on yellow financial graph background. Horizontal composition with selective focus and copy space. Investment, stock market data and finance concept.

It is fascinating to watch market pundits, policy makers, commercial bankers and other media-supported experts talk tough on the need to fight inflation via rate hikes and central bank balance sheet cuts. This would be comical if not so tragic.

Like the science behind masking, last year’s changing Fed narrative as to temporary or long-term inflation was incompetency bordering upon dishonesty, as inflation was as plain to foresee as the rising money supply.

Today, a similar tragi-comedy of open confusion and equally open hypocrisy about tough vs. accommodative (or hawkish vs. dovish) central banking is all the rage.

However, all this taper talk is little more than public posturing rather effective policy—as it once again ignores math, history and common sense.

Up for discussion: The gluttons demand a diet; that’s rich; we get this, fair enough; the $300T elephant in the room; looking for flowers, ignoring the manure; the fog of distorted markets; how markets tank; shark fins emerging from the bond market dips; and gold making telling moves.

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