The approaching 5-10 years are prone to see asset costs decline by a minimum of 90% in actual phrases. Sure shares, bonds and property costs will in coming years collapse. However that’s not sufficient, the entire construction of society may also fall. There will likely be no or negligible pensions, there will likely be no social safety system and the usual of medical care will fall dramatically.
So is that this one other sensational prediction by a Cassandra or Doom and Gloom know-it-all?
100 YEARS OF A FALSE AND CORRUPT HOCUS POCUS SYSTEM
Hardly, it’s simply the results of 100 years of a false financial system primarily based on corrupt ideas, faux cash and limitless credit score, solely backed by inflated asset costs in a vicious cycle of self-destruction.
All actions have penalties however the creators of our present Hocus Pocus financial system by no means nervous concerning the unfavourable results. And why ought to they since they for over 100 years have been the key beneficiaries of the Hocus Pocus system they created on Jekyll Island.
The present financial system was created on Jekyll Island in November 1910 by some influential and disingenuous bankers backed by a few
duplicitous influential politicians. They had been guided by Mayer Amschel Rothschild’s motto – “Allow me to subject and management the cash of a nation and I care not who makes its legal guidelines.”
It was a genial system that allowed them to regulate not simply the US monetary system however ultimately additionally the worldwide monetary system because the US greenback grew to become the reserve forex of the world.
The system was primarily based on limitless debt and fiat cash creation. Politicians rapidly realized that there was a vast supply of cash that they may faucet with a view to purchase votes.
WIN-WIN FOR THE BANKERS
What a phenomenal system! Politicians have entry to all the cash they should please the folks while the bankers each subject and management the cash. An actual win-win for the bankers with limitless monetary advantages and energy by whole management of the politicians and the monetary system in a single fell swoop.
It is just with this ingenious Hocus Pocus scheme that the politicians have been in a position to enhance the US federal debt each single yr for 90 years with out a monetary collapse. And on the similar time the scheme has allowed the politicians to remain in energy with out the system going bankrupt.
Clearly the politicians are solely given the phantasm by the bankers that they’re really in energy. The bankers continually make the politicians insecure by letting the opposing celebration win frequently. The bankers know that concern and insecurity mixed with monetary energy give them excellent management of the politicians.
US debt to GDP is now at 135%, the best in historical past and above the WW II degree. The typical debt to GDP since 1790 is 35% so the present degree is 100 share factors above that. Within the subsequent few years, I’d count on the ratio to go considerably above 200% in a banana republic trend.
For the sake of fine order, let me verify that there have been two years within the Forties and three within the Nineteen Fifties when the debt really didn’t enhance. However they had been the one exceptions. Don’t be fooled by the Clinton surpluses that truly by no means occurred. Debt continued to extend within the late Nineteen Nineties and the claimed surpluses had been solely achieved by shifting deficits to debt thus creating the phantasm of surpluses. Plainly there are neither sincere bankers nor politicians.
WHY WARNING SIGNALS DON’T WORK
So the above Hocus Pocus scheme explains why a rustic can run deficits for 90+ years. The traditional purple warning indicators of deficits and money owed resulting in financial collapse are quickly not functioning. Virtually 100 years of disequilibrium, with the standard legal guidelines of nature similar to provide and demand appear put aside, appears longer than potential.
Thus for a interval, manipulation, deceit and the desire of the folks to be fooled could be stronger than the pure legal guidelines of nature. The warning indicators can subsequently be ignored because the momentum of debt and deceit, by its sheer power, can drive the system ahead. That’s, till the entire Hocus Pocus scheme dissolves itself by the pure weight of the falsities.
All this has occurred many occasions earlier than, for instance throughout the Roman Empire when it took 100 years between 180AD and 280AD for the Silver Denarius to lose 100% of its worth and silver content material.
So there are at all times CONSEQUENCES as historical past proves!
CURRENCY DEBASEMENT TO ZERO NEXT
And historical past provides us a very good indication the place we presently are within the cycle. If we take the creation of the Fed in 1913 as the beginning of the present financial system and Nixon’s seminal determination to shut the gold window in 1971, as the start of the tip, we at the moment are on the finish of the tip sport.
We may simply level to the financial, political and social decadence as clear proof of the approaching world collapse. However the simplest way for measuring the place we’re is clearly the debasement of the currencies.
As I regularly stress, all currencies have misplaced 97- 99% in buying energy since 1971 and round 85% since 2000.
The ultimate fall of 1-3% since 1971 to achieve a ZERO worth for the fiat currencies is prone to happen within the subsequent 5-10 years. However keep in mind that this can be a 1-3% fall means 100% from at this time.
TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED
So the destruction of cash is now accelerating in parallel with the deficit and debt growth. That is the everyday course of occasions for the tip sport.
Because the currencies collapse, debt explodes.
Ludwig von Mises described this course of as follows:
It took the world 2000 years to take world debt from nearly $0 to simply below $100 trillion. Most of that $100 trillion was clearly since 1971.
And within the final 21 years debt has trebled from $100 trillion to $300 trillion.
Presidents and Prime Ministers can stand on their cleaning soap packing containers and inform their folks about all their good intentions.
However we mustn’t imagine one phrase of what they are saying. As a result of they’ve forgotten one easy little reality – HISTORY.
As a result of historical past would educate them some vital classes, if their conceitedness permitted them to look. They’d be taught as they attain the tip sport that world debt of $300 trillion will within the subsequent circa 5 years develop to not simply $500 trillion however quadrillions because the monetary system reveals its true issues. This may occur as gross derivates of $1.5 quadrillion flip into debt when counterparties fail. As this occurs, banks may also have to be propped as much as the tune of $100s of trillions along with most sovereign debt as bond markets collapse and rates of interest surge. So whole world debt within the subsequent 4-9 years is prone to exceed $2 quadrillion.
I’ve written articles, usually weekly, concerning the world economic system, wealth preservation and gold & silver for round 20 years.
I seldom get direct criticism from readers about my articles. The nice factor is that nobody is after all compelled to learn them so folks can as a substitute vote along with your toes.
Some folks complain that my message is similar each week. Others get pleasure from having the message bolstered weekly. Clearly, it’s by no means precisely the identical however variations on a theme.
Nonetheless, those who level out that my message feels like a damaged document will not be completely incorrect. I’d clearly say that it’s not a damaged document however a document in a continuing loop with the identical constant message each time.
From the time I began writing frequently 20 years in the past, I’ve not modified the drift one iota. The piece may be performed barely in another way every time however the tenor by no means adjustments.
So readers may in essence learn the identical article over and over since my message has been constant for the final 20 years. And it’ll not change earlier than the cycle has terminated in “closing and whole disaster of the forex system concerned”
The massive downside this time is that we’re speaking concerning the world system and never only one forex or nation. As a result of the debt disaster at this time includes each East and West in addition to all creating nations. Thus the size and depth of the approaching fall is prone to be larger than any time in history.
TESTED PRINCIPLES NEVER CHANGE
Because the essence of my writings relies on ideas examined for 1000s of years, they won’t change. And as my readers know, the thrust of my message is what each politician and chief ought to have learnt by now. Sadly they are going to by no means be taught since they at all times imagine that issues are totally different at this time.
The message is extremely easy. Each empire and each nation carry inside them the seeds of their very own destruction. Cycles are infallible, whether or not they’re political, historic, financial or cycles of nature like local weather.
Nonetheless most leaders imagine they will manipulate not solely financial cycles however even local weather cycles. What they don’t realise, is that ultimately the legal guidelines of nature will at all times win.
Going again to empires, just like the Persian, Roman, Mongol, Ottoman or British they thrive as a result of treasures, commodities or low cost labour they acquire entry to. The American empire was not primarily based on land seize however on monetary and navy dominance.
As soon as empires attain a sure measurement, they develop into fats and inefficient. Political and navy struggles result in corruption and dwelling above your means. The one method to handle brief time period is then to print cash and thus debase the forex. Because the forex collapses, so do the navy and political constructions. Because the forex approaches zero a hyperinflationary melancholy usually follows.
The above is clearly a simplified potted model of the financial cycle however very typical. Nonetheless, it has main implications for the measures buyers should take.
As we attain the tip of a significant financial cycle, defending wealth is vital. When shares, bonds, property and currencies collapse, bodily gold and a few silver is the very best insurance coverage towards a failed system.
Historical past tells us that treasured metals is the last word methodology of wealth preservation with a view to financially survive what’s coming. Do not forget that you don’t must be rich to save lots of in gold and silver. One gramme of gold is $60 and one ounce of silver is $30. So nearly everybody can afford such necessary insurance coverage for themselves and their household.
Whether or not gold reaches my lengthy standing goal of $10,000 in at this time’s cash and silver above $600, or a lot increased in hyperinflationary phrases, is irrelevant. Way more necessary is the safety that it’ll give buyers towards the destruction of cash and asset costs.
However your most necessary wealth isn’t materials. In durations of disaster an important values that we should maintain pricey are household and associates, in addition to free treasures similar to nature, books and music.