Matterhorn Asset Management

SOVEREIGN ALCHEMY WILL FAIL
by Egon von Greyerz – Matterhorn Asset Management

When we look at the world economy today, wherever we turn we see a wall of risk. And sadly this is an insurmountable wall with risks that are totally unprecedented in history. There has never before been a potentially catastrophic combination of so many virtually bankrupt major sovereign states (US, UK, Spain, Italy Greece, Japan and many more) and a financial system which is bankrupt but is temporarily kept alive with phoney valuations and unlimited money printing. But governments will soon realise that they are not alchemists who can turn printed paper into gold. The consequences of the global financial
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GOLD IS NOT GOING UP – PAPER MONEY IS GOING DOWN
by Egon von Greyerz – Matterhorn Asset Management

This month we will discuss the illusion of gold going up. We will  examine the destiny of the dollar and why it will reach its intrinsic value of zero. We will also demonstrate why money printing will accelerate rapidly in the next 12-24 months.

Paper Money Collapsing against Gold
The problem with paper money is that governments can create unlimited amounts. This is what they have done throughout history and especially in the last 100 years and which has led to the total destruction of most currencies. Most people don’t even understand that their government
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A Shocking Fall
by Egon von Greyerz – Matterhorn Asset Management

This month we will discuss what is likely to be a major change both in sentiment and in the economy in the next few months. The autumn of 2009 will be full of shocking surprises in the banking sector, in financial markets and in the world economy. The events that we outlined in our previous newsletter, “The Dark Years Are Here” are going to start unfolding. There will also be shocking falls in stockmarkets, in the dollar and in bond markets. But these falls will create major opportunities for investors which we will also discuss.

The syndrome of hope and false
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The Dark Years are here
by Egon von Greyerz – Matterhorn Asset Management

In this newsletter we will outline what is likely to be the devastating effect of the credit bubbles, government money printing and of the disastrous actions that governments are taking. Starting in the next 6 months and culminating in 2011-12 the world will experience a series of tumultuous events which will be life changing for most people in the world. But 2011-12 will not be the beginning of an upturn in the world economy but instead the start of a long period of economic, political and social upheaval that could last for a couple of decades.
We will discuss
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No country has ever abolished poverty by printing paper
by Egon von Greyerz

We have consistently warned investors that the USA and many other countries including the UK will have a hyperinflationary depression in coming years. In this Newsletter we discuss why hyperinflation will happen. We also look at why government debt will grow exponentially in the next few years and discuss who is going to repay the additional $30-50 trillion that the world is likely to print since this crisis started?
Hyperinflationary Scenario Confirmed
We are primarily discussing the USA in this Newsletter, but most of the discussion also applies to the UK and many more countries.
Our three most important indicators
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IT AINT OVER ‘TIL THE FAT LADY SINGS
by Egon von Greyerz

Spring is here and optimism is creeping back into the world economy. In this newsletter we will discuss why there will be a long time before the fat lady will sing (for explanation see Wikipedia). In our view we are still in the first act of three in a drama, the outcome of which will dwarf the most tragic of Wagner’s operas.
In our January 2009 Newsletter we forecast that there would be a correction up in the US stockmarket similar to 1930 when the market went up 50% from the low and then declined by a total
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GOLDEN TIMES AHEAD
BUT ONLY FOR OWNERS OF PHYSICAL GOLD
by Egon von Greyerz
In this month’s newsletter we will discuss why physical gold is the most important and probably the only asset to protect investors’ wealth from total destruction in the next few years. Gold will not only preserve investors’ wealth, it will also continue to greatly enhance their wealth just as it has done for the last ten years. In 2002 Matterhorn advised investors to put up to 50% of their liquid assets in physical gold. Since then gold has appreciated over 200% against most currencies. But we believe that the big move in gold is still to come as we
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The bankrupt saving the bankrupt
by Egon von Greyerz
Who will save the UK?

Last month we said that the UK will follow Iceland in a hyper inflationary financial depression. Just one month later our predictions are being confirmed both by events in the UK economy as well as by forecasts from the IMF several economists and money managers.
If we look at the chain of UK debtors, every link is on the verge of bankruptcy.

The UK consumer debt is higher than GDP and unsecured personal debt is twice the level of the rest of Europe. The UK consumer debt has been built up during good times and there is no possibility that this
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2009 – A YEAR OF MONEY PRINTING,
INFLATION AND FINANCIAL TURMOIL
by Egon von Greyerz
In our December 2007 report we forecast “a major recession or depression for the world economy in the coming years” as well as “serious problems in the world’s financial markets with the banking system fighting for survival.”
Sadly this has all come to pass but the trends that started in 2008 are only the very beginning of a major change of trend that will dominate the world economy for many years. It will be devastating and life changing for most of us but there are ways of easing the pain by taking the right decisions which we will discuss
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GOLD MARKET UPDATE
Gold had a significant break on Friday 21 November. It broke out of a trading range to a closing high of $ 800.
But more importantly Gold made new weekly closing highs in many currencies including the Pound and the Swedish Kroner and the Euro. Whilst the world’s stock markets in 2008 have lost between 40% and 70%, gold has gained against all major currencies except against the dollar. The table below summarises Gold’s performance in four currencies. Since the lows in the second half of 1999 Gold has gained between 169% and 242% in these five currencies or 18% to 26% annualised.
Gold has also outperformed all major stock
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