By Egon von Greyage
There is a good line between happiness and sorrow, as describes in Dickens David Copperfield. The landlord of Copperfield, Mr. Micobber, was on the wrong side of happiness by just six Pence.
In a recent article, the end of the US Economic and Military Empire and the Rise of Gold, I said: ,Uncertain deficit and gallop debt level, combined with a collapsing military, are the correct recipe for the end of an empire. ,
Therefore, we are clearly almost insolvency not talking about six-pens deficit in the case of the US Empire, but rather about a loan that is growing rapidly, now many trillion dollars are now annually.
History is not just poetry, but it repeats itself again and again.
Let’s look at the final stages of a debt crisis.
The table below reflects the disastrous results of irresponsible governments during the last 54 years.
Governments never tell their people that they constantly destroy the value of people’s money.
In 1971, when Nixon supported the dollar gold, he said: ,Your dollar will be worth tomorrow “,
If the tricky dick was still alive, he could definitely argue that he did not lie.
Because today a dollar is still worth a dollar, he will argue. But he will not tell anyone that after 53 years, the dollar has lost 99% of its purchasing power.
Gold is up 78x up after Nixon shut down the gold window in 1971. Will be phase Acceleration.
As I explain in this article, gold will grow from multiples in the coming years (obviously with improvement).
The Roman Emperor who ruled the Roman Empire from 190 to 290 AD could argue the same, although the Danarious silver coin went up to zero from about 100% silver content.
In the early 1920s, the same was true for Frederick Ebert, President of the Republic of Weimar. He must have argued that a mark is always a mark, even when he has lost 100% of his purchasing power.
But gold does not lie. Measured in real money, in 1923, an ounce of gold, 87 trillion points were priced.
The deception of leaders is never publicly manifested until a currency dies in a hyperflation collapse.
But we should never forget what Voltaire said in 1729 – “Paper Money eventually returns to its internal value – zero.”
When we have ever heard of a leader that we should protect ourselves against the destruction of our money by constantly arguing the value of money?
As Alan GreenSspan said in 1967:
“In the absence of gold standard, there is no way to protect savings from seizing through inflation. There is no safe store … Welfare is necessary for the financial policy of the welfare state that there is no way for the owners of money to protect themselves. It is a dilapidated against gold against welfare statistics. Understand this, no one has any difficulty in understanding the opposition of gold standard.”
Then take a look at the tables above.
These have destroyed some examples of thousands of currencies throughout the history.
Governments create inflation by printing funds and allowing the financial system to create unlimited amounts of credit in a partial reserve banking system.
In short, this means that banks and other financial institutions receive a deposit, say, $ 100 and against it can lend 10 to 50x or $ 1,000 to $ 5,000. Add derivatives, which allows the system to make trillion dollars from thin air.
This unethical and completely underestimate financial models do not only provide unlimited benefits for financial players, whether they do it in any part of banks, hedge funds, private equity or any part of the banking system.
This is how there is a total global loan of $ 350 trillion Dollar If we include all these creative “financial weapons of collective destruction”, Warren Buffett called him. Look Debt pyramid Below
Till now, traditional investment assets such as shares and assets have been excellent \ _ Conservation has been largely increased as they have increased to a great extent as a result of continuous development of credit and money supply.
So, this massive liquidity injection has created a collal paper fortune for most investors.
When will it end
That party is now ending. The evaluation of these bubble assets is now at dangerous levels. History tells us that Manas always ends badly.
But history does not tell us when they will end. Will it be tomorrow, six months or many years?
So, can we guess the end?
Well, all sciences are the most accurate. With the benefit of this very accurate method, many people will later tell us that the accident was obliged to take place.
Sadly, no one knows that this time, buying a dip will fail. Nevertheless, investors will buy a dip after a dip until they get tired. So when the market has fallen ahead, no one hopes that most investors will sit tight on the basis of greed and foam (fear of disappearance). And just at that point, the greatest wealth in history will be destruction.
Very few people will think of alternative investments like gold to preserve money.
And at that point, gold must have increased so much in the price with little participation. Everyone will get very expensive gold. Very few people will realize that gold is not going up, but paper money is down.
An attractive journey leads to a vessel of gold
I was born in Sweden and dual Swedish / Swiss citizenship. I started my career in banking in Switzerland and then in corporate life in UK.
In 1972, I was offered a job by a bank client, a small listed retail company called Dixon. I became the Finance Director in 1974 at the age of 29. After this I was appointed vice -president.
We made the company the largest electric and consumer electronic retailer and an FTSE 100 company in the UK.
It was an incredibly stimulating time that made both a dynamic business systematically and by acquisition. As business leaders, we experienced adverseness as a positive challenge. We sold electrical goods including television by candle light in 1974 when a major coal miners had electricity for only 3 days per week. And we grow by companies by themselves very large acquisitions.
Corporate life is extremely exciting in a dynamic business. But since I started that career in the late 20s, I felt that it was time to talk in my early 40s.
Therefore, in the 1990s, I started investing the capital of some rich friends along with my own funds.
I have always been interested in understanding the risk in banking and corporate life and protecting the negative side.
In the 90s, I began to worry about the development of debt and derivatives. So I was looking at the best ways to preserve money.
Nixon experienced the closing of the gold window and an increase of 24x after the price of gold in 1971 from $ 35, by $ 850 in 1980, I was always fascinated by gold.
The debt and especially derivatives became a large -scale bubble in the late 1990s without growing any huts and especially technical shares, I was sure that the excellence of gold was the best assets to preserve wealth.
In 1971, he experienced gold from $ 35 and then to $ 850 in 1980 to $ 250 in 1999, I was closely looking at the price of gold for a below confirmation. So in early 2002 we invested heavy for $ 300 for $ 300 and in a group of co-directors, which we were advising.
We have not looked back since then and increased our investment in gold only for years. Since we had created a great system to buy and store physical gold based on our stringent wealth conservation principles, people around the world started asking to ask for help. This led to the construction of Matterhorn Asset Management / Goldswitzerland. Earlier this year, the name was changed to Von Grence AG.
Today we have customers in more than 90 countries and possibly the world’s largest company outside the banking system for HNWIS to obtain and store gold.
We have soon become actively involved in gold for a quarter of a century and we have experienced a growth of about 10X in the price of gold since starting the business.
Nevertheless, we believe that the gold journey is only starting now.
Why, you can ask.
Well, gold is the best performing asset class in this century, which is better than S&P, which includes reinforced dividends and still No one is the owner of gold.
Only 0.5% of global financial assets are invested in gold.
It is completely out of understanding that gold has increased by 9.5x. In this century, even investors are not looking at it.
So why is gold still so unaffected?
Outside the financial system, gold is the final form of conservation of gold money organized in the name of investor in safe volts and courts.,
But asset managers and banks dislike gold because they cannot commission with a property that cannot be made at regular intervals. So no commission and no performance fee. In addition, very few people understand gold.
In my view, gold is now ready to explode, measured in paper money.
I explained the reason for this Gold explosion in many articles, including one recent,
But remember that gold never goes up. All this does to reflect the destruction of fiat money of governments and central banks.
Gold is just a stable purchasing power in a world where goods and services increase in prices rapidly because you always buy it that always becomes zero.
After saying this, I hope that gold did better than maintaining coordination with only purchasing power over the next few years.
Let me clarify it again – any paper money has been alive in history anytime, sometimes, in history (In its original form).
With such the correct record of destroying money, why should we believe that Fed, ECB, BOE (Bank of England) or BOJ (Bank of Japan) or any other central bank will give a chance to save the global financial system with toxic risk with $ 2-3 quadrilateral?
Well, I can guarantee personally that they will not.
Remember that it is a technical default to destroy the value of money by printing the quadril, although no central bank will call it.
And for the Central Bank, making digital money is just a technical turn.
The loan cannot be written completely without completely destroying the value of the assets that it supports. How does it work a balance sheet or double-entry accounting.
Therefore, this global financial system will collapse, as they all have. But this is the first time it has been global.
BRICS countries will also suffer, but not like the West.
The coming era will be commodity-based. For example, take Russia with $ 85 trillion natural reserves. He will be one of the leading winners in the coming commodity era. They also have low loans.
So, let’s look at the risks.
War risk
Today there are two major wars that can lead to global conflict and potential nuclear war.
The US is directly involved in conflicts with arms and money, although the US region is not threatened. Trump is the best chance for the world to avoid global conflict. They have proved both of them and said that they will stop the war, especially in Ukraine. Harris will not change the direction of Biden and Neocon, which means a lot of risk of global conflict.
Decline of global financial system
As mentioned above, this collapse is unavoidable. The only question is when and to what extent. I strongly believe that most of the BRICS will suffer less than the country collapse and will emerge very fast.
The West, with its massive debt bubbles and moral collapse, has already begun a major secular decline that may live for centuries.
Conservation of money
Gold is not a panacea for the above mentioned problems. However, history proves that in any period of crisis, gold always stands for both economically and personal protection, as a guard.
But whatever is more important is to protect and help family and friends.
A group of strong family relations and close friends is more important than all gold in the world.
As Dickens said: