Derivatives, Leverage and the 2008 Crash

Tom welcomes Matthew Piepenburg, a partner at Von Greyerz Gold Switzerland and author of “Gold Matters” and “Rigged to Fail,” to discuss the complexities of modern financial systems and the role of gold and silver as safe havens. Piepenburg argued that the increasing complexity in financial markets, such as derivatives and central banking operations, is often used to obfuscate reality and hide risks. He cited historical examples, including the 2008 financial crisis, to illustrate how leveraged instruments and complex financial products can lead to systemic risks. Piepenburg criticizes the Federal Reserve, describing it as a private corporation that creates money out of thin air, benefiting insiders and exacerbating wealth inequality.

Matthew also discusses the manipulation of gold and silver prices through futures markets and the London Bullion Market Association (LBMA), suggesting that these manipulations are designed to control the perception of these metals’ values. The conversation touches on the current state of the economy, including the impact of quantitative easing and the potential for a debt crisis.

Piepenburg expresses skepticism about the sustainability of current economic policies and the effectiveness of measures like stablecoins in addressing these issues. He advocated for individuals to protect their wealth by investing in physical gold and silver, which he views as strategic assets in the face of fiat currency debasement. Piepenburg also discusses the volatility and potential of silver as an investment, comparing it to gold and highlighting its affordability and industrial uses.

He cautions listeners about the risks associated with equities, particularly in the tech sector, and the potential for a bubble in AI-related investments.

Timestamps:
00:00:00 – Introduction
00:00:45 – Complexity Hiding Fin. Dishonesty
00:10:45 – Federal Reserve System Exposed
00:16:06 – Gold and Silver Manipulation
00:18:50 – Protecting Purchasing Power
00:21:42 – Gold Standard Historical Lessons
00:25:10 – Nixon Shock and Debasement
00:30:34 – Futures Markets Productive Uses
00:35:15 – Leverage, Tokenization & Complexity
00:43:25 – Physical Gold & Silver
00:52:02 – Precious Metals Market Timing
00:56:43 – AI Bubble and Equity Risks
01:03:45 – Concluding Thoughts

Guest Links:
X: https://twitter.com/GoldSwitzerland
Website: https://goldswitzerland.com/
Articles: https://signalsmatter.com/
Book (Amazon): https://tinyurl.com/pvpfmy8c

Matthew Piepenburg is a Partner of Von Greyerz and the author of the popular book, “Rigged to Fail”. Matt is fluent in French, German, and English. He is a graduate of Brown (BA), Harvard (MA), and the University of Michigan (JD). His widely-respected reports on macro conditions and the changing behavior of risk assets are published regularly at SignalsMatter.c