Grand Ascension or Great Collapse?

It depends upon your perspective and the markets you follow …

Perspective:

  1. The global economy is drowning in debt – $230 Trillion and counting – that will not be repaid at current value. Expect hyperinflation or outright default.
  2. Negative Interest Rates on $13 Trillion in sovereign debt are a sign of failure by central banks, governments, and Keynesian economists.
  3. Pension plans and savers are hurt by low and negative interest rates. They have been sacrificed for the continued levitation in the stock and bond markets.
  4. All of the above indicate a correction and possible collapse are coming. Perhaps it began this month, September 2016.
  5. The charts of six markets tell the story.

Current Highs That Are Worrisome:

Note the circled S&P highs approximately every 91 months and the dangerous breakdown points.

Note the circled T-Bond highs approximately every 91 months. The global bond markets are in a huge bubble, as indicated by negative interest rates, that has lasted over 30 years. “Investors” pay for the privilege of lending money to insolvent governments that will repay, if at all, in devalued currency units.

It is a bubble!

 

The US Dollar has peaked approximately every 90 months. The next big move could be down.

Recent Lows That Should Produce Massive Rallies:

 

Gold hit lows approximately every 89 months. The rally from the December 2015 low has been impressive. Given the likelihood of corrections and/or crashes in stocks, bonds, and the dollar, gold prices should rally further.

Silver has bottomed approximately every 84 months and tells the same story as gold. The rally from the December 2015 low seems likely to push upward long and hard. If the next low occurs in late 2022 to early 2023 (Dec. 2015 plus seven years) a cycle high could occur early next decade. Considerable price appreciation between now and 2020-2022 seems likely, especially considering the upcoming corrections and/or crashes in stocks, bonds, and currencies.

Lows in the XAU – an index of gold stocks – have occurred approximately every 92 months. Expect gold and silver stocks to rally for several years.

CONCLUSIONS:

 

  • Central banks have levitated stocks and bonds for decades.
  • Perhaps central banks and the financial elite can levitate the stock and bond markets for another two months in their attempt to elect HRC. The near 400 point drop in the Dow on Sept. 9 (this was written on Sept. 10) suggests they might not levitate those markets long enough for the status quo to survive an honest election.
  • Gold, silver, and their stocks bottomed approximately nine months ago and have rallied nicely since then. Expect those rallies to continue for several years, perhaps into early next decade.
  • Gold, silver, and their stocks will either rally considerably, or incredibly, depending upon central bank insanity, more QE, helicopter money, accidents, and currency devaluations. Remember, Argentina hyperinflated over one trillion to one, compared to the US dollar, in the past 70 years. Many other countries have similarly hyperinflated. It could happen in your country also.
  • The S&P, T-Bonds, and the Dollar index look like candidates for the Great Collapse.

  • Gold, silver, and their stocks look like candidates for the Grand Ascension.

Gary Christenson

The Deviant Investor

6 thoughts on “Grand Ascension or Great Collapse?

  1. Is this the act of being over thrown by Socialism ! The latest rip I found , Hitler lived till he was 95 years old
    And up to 300,000 of his friends came to MY America and infected our collages with his Natze Hitler
    SOCIALISM ! Look up Hitler FBI Argentina Look who did it to us !



  2. Very nice insightful work. Hopefully you are graphing forces larger than anything the BIS and FED can fool.
    One billionaire could blow up the suppression of silver prices, but even greed has proven too weak to challenge the paper silver shorts. China must be getting more out of letting the game continue than she would by running the tables. The presidential election could be inflenced by Russia and China if they wanted to upset the fiat money ponzi. Time will soon tell if they want More of Hillary and her backers, or want the Art of a New Deal.


    • Mike Montross, don’t believe in and perpetuate the suppression conspiracy theories. This is a lack of understanding on your part and an act of greed and stupidity on those who push this theory to sell subscriptions or coins or whatever. Paper shorts?? Do you realize in order for there to a contract long there has to be contract short? Gold went from $265 to $1923 the conspiracists still claimed it was a manipulated market because they only want it to go up, always up all the time. Did “they” manipulate all the other commodity markets too? They all went down.


      • The banks have already plead guilty to manipulating the gold and silver markets.

        It is illegal to sell things short you don’t have, but the government has let the paper silver shorts get away with it for years.

        If I am allowed to sell Apple stock short without owning it I can cut its price in half in a week.

        Are you young and just getting interested in markets?

        Y


  3. Gary well done. Even when it all ends, no one goes to jail. In life I have learned one thing. Money talks and bull crap walks.
    We all know there will always be some form of money.
    Everything must die.
    silvercup.


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