Mile Markers on the Road to Ruin

We know much is currently wrong with our financial world, as discussed in the James Rickards book “The Road to Ruin” and elsewhere.

  • The official U.S. government debt is nearly $20 trillion. Unfunded liabilities are 5 – 10 times larger. Debt has doubled every 8 – 9 years for decades – since the Federal Reserve was put in charge of devaluing the dollar. Debt will continue to grow, obviously out of control.
  • Millions of Americans are out of work, regardless of the official statistics.
  • Prices increase, some rapidly, regardless of the official statistics on consumer price inflation.
  • More government spending and debt are looming on the horizon. New and escalating wars are likely. Expect more deficits, debt, and inflation.
  • The U.S. stock market is selling at all-time highs, levitated by “easy money” and unsupported by fundamentals or breadth.

Option A:

Trust the professionals who manage our digital and paper wealth which is backed only by debt, promises, fantasy, and confidence in the Federal Reserve and government. Believe official statistics and mainstream media that tell us things are peachy and not to worry.

Option B:

Use gold and silver bullion (not the paper stuff) as financial insurance to protect the buying power of some or most of our net worth. Based on a century of experience, we can depend upon central banks and global governments to devalue currencies, create more debt, and propel gold and silver prices far higher.

Really? Those options seem extreme. Why? Read on!

 

STOCK MARKETS:

Consider John P. Hussman’s Exhaustion Gaps and the Fear of Missing Out.

W:\Deviant Investor Website\AA-Current Work in Progress\K-Dow Gaps.png

Read David Stockman: Market Crash to Occur

“Our country needs a good shutdown in September to fix mess!”

“There will be no bid for the stock once the panic sets in.”

BUBBLES:

 

Mike Maloney created an easily understood video which is 35 minutes long and explains the “everything bubble.” Watch it! Stocks, bonds, real estate and more are discussed.

Bill Holter discusses “The End of the Empire.” (31 minutes) Watch it!

PENSION PLANS:

 

Constantin Gurdgiev discusses “U.S. Public Pensions System:

“Or, put more cogently, the entire system is insolvent.”

“… in … California, New Jersey, Illinois, etc. we are already facing draconian levels of taxation, and falling real incomes of private sector workers.”

“In other words, there is not a snowball’s chance in hell these gaps can be funded from general taxation in the future.”

GOLD AND SILVER:

 

Read Steve Warrenfeltz: Silver and Gold Pop!

Lior Gantz interviewed Gary Christenson (author) on his book “Buy Gold Save Gold! The $10 K Logic.” This youtube interview (62 minutes) discusses historical gold prices, on-going dollar devaluations, consumer price inflation, gold prices rising to $10,000 as the dollar is devalued, silver, and much more.

CONCLUSIONS:

 

  • It is possible we will enjoy a century of global peace, return to honest money, eliminate the overhanging debt, balance the budget, and – insert your favorite fantasy here!

 

  • Otherwise, bet on Option B – buy gold and silver bullion and store it outside the banking system. Prices will rise substantially as all fiat currencies are devalued further.

 

I discuss the ongoing devaluation of the dollar in my book: Buy Gold Save Gold! The $10 K Logic.” It is available at Amazon, or at gechristenson.com in paper and pdf for non-US readers.

 

Gary Christenson

The Deviant Investor

5 thoughts on “Mile Markers on the Road to Ruin

  1. I completely agree… its the timing i have trouble with….when you have infinite currency you hold out for quite a while … while you have infinite currency you can not have infinite value …the only why to measure “value ” today is the PM …whose price is rigged …
    So we can see the edge of the cliff… we have no good measure how far it is or how fast we are moving toward it …Soooo I have looked at this from another angle … that of a combat vet …see we are all about backward planing …so i figured I would project a failure out to say 2020

    use exponential growth of debt from there to see what the future would look like … and to examine the present from that view… below is my estimation….

    see I have a theory of collapse… a mathematical certainty …by 2020

    why 3 basic reasons:
    1- only 1% or less of the US population
    2- as $$$ collapse more and more will want real silver
    3- as more and more Baby boomers will have to liquidate 401K
    4- the price will double in concert with demand
    5- Theory – the above will cause exponential price growth
    6- Theory – this exp growth will manifest as 2x in 1/2 the time….time period one year…
    7- 100% US population will want silver -non the less… whole world

    Under the above- assumptions then watch this watch man

    Let us say im correct Jan 2020 is the end zero or very close to zero for DOLLAR
    this is the maximum value for 1 oz sliver …
    so follow this if this makes since …
    Jan 1st the end silver value would be seven doubling s from $20.00
    so 8 doubling is 2 to seventh power that number is 128
    so 128 x $20 is $2,560 per oz of sliver

    Milestones : of sliver ” price ” would occur in: % of population purchases …
    1- Price of sliver $40 when 2% purchase – date est @ 2018
    2- Price of sliver $80 when 4% purchase – date est @ Jan 2019
    3- Price of sliver $160 when 8% purchase – date est @ Jun 2019
    4- Price of sliver $320 when 16% purchase – date est @ Sept 2019
    5- Price of sliver $640 when 32% purchase – date est @ Nov 2019 …($$$ will fail here)
    silver should go to infinity … 1/3/ panic rule should apply … if not then ….
    6- Price of sliver $1280 when 64% purchase – date est @ Nov 15 2019
    7- Price of sliver $2560 when 100% purchase – date est @ Nov 21 or 25 2019

    8- the end est price for oz is $5, 120 date is Jan 2020…from here the doubling are too fast

    15 days …7 days … 3 days …. 18 …hrs …9 hrs …5 hours … 2 hours … 60 min …30 min… 15 min …7 min …. 3 min …. 45 sec …. 20 sec … 10 sec … 5 sec … 2 sec … 1 sec …
    on Jan … 27 …8 am …23 min ..37 sec …silver will be ….33,554,432 x 20 = $671,088,640 oz
    and will double… in the next 1/2 sec….until it is un-countable even for a computer…that could happen in a day….bad hunh …power of exponential growth…some where along the asymptotic curve …


    • And you have demonstrated that exponential growth can not continue forever. Currently debt and currency in circulation are growing exponentially. That will stop – someday. Until then silver prices will also rise, along with debt and currency in circulation.
      The Deviant Investor


  2. The “EU unravel next year” will not happen. More than 15 years ago, Alan Greenspan predicted the collapse of the Euro when the Euro was introduced. It did not happen yet. It may happen one day. The reason is very simple: The total debt of the EU is much less than the total debt of the US. The EU has more gold in reserves (12 thousand tons) than the US (8000 tons). And, more importantly, the EU economy produces more than the US economy does. So before the EU collapses, the US economy will collapse first.

    My prediction: Neither the US nor the EU economy will collapse if there is no WWIII. We will continue with business as usual for many decades to come. Collapse, if it comes, will not be the result of debt. It can only be the result of either a war or exhaustion of natural resources (like end of copper or oil). The beauty of the financial system based on paper is that every crisis can be papered over.

    The gold price will be regulated for many years to come. If it goes up to $10,000 per ounce, then only as the result of government policy. Like the revaluation of gold from $20 to $35 under Roosevelt. The new price level was not the result of market actions. It was simply determined by Roosevelt during breakfast with the secretary of the treasury.

    People completely underestimate the resiliency of the system and the power of governments.


  3. given the nature of homo sapiens, all this is inevitable, and soon. collectively we maximize today for the sake of tomorrow.
    The Marx/Keynes goal of eliminating the business cycle is as intrinsically flawed as Marx’ politics……its like throwing oil on the water to eliminate waves, eventually you will have a bigger mess than when you started……its basically ignorance of human nature.
    We witness the death of socialism as we saw communism succumb in the early nineties.
    The EU unravel is next year.


Leave a Reply

Your email address will not be published. Required fields are marked *