Wealth Transfer: Panic and Chaos, Demise of Paper Currency, Why Gold is Useful, Booms and Busts, Correct Asset Class
Source: Final Wakeup Call | By Peter B. Meyer Panic and chaos will break out Demise of paper currencies is a certainty Why gold is so…
Source: Final Wakeup Call | By Peter B. Meyer
- Panic and chaos will break out
- Demise of paper currencies is a certainty
- Why gold is so useful as money
- How Booms and Busts are created
- Riding the opposing cycle of the correct asset class
Once in a lifetime opportunity
More than any other time in history, people can exponentially increase their standard of living during this upcoming collapse, without being exposed to great risk. Normally the precious metal community’s wisdom says that gold and silver are not investments, but rather they are wealth insurance. While this has always been true in history, there also were brief moments where gold and silver have been simultaneously the safe haven and the best performing investments, achieving truly massive gains in absolute purchasing power.
The wealth transfer that is now upcoming is set against the backdrop of global imbalances that dwarf any that came before. But this one is in combination with the fact that all world currencies are fiat which are exhibiting signs of expiration and death. This is an incredibly unique situation never seen before in history. It is probably a once in a lifetime occurrence of all of humanity’s existence, an opportunity that may never occur again. The coming wealth transfer will be of a magnitude that the world has never witnessed. Buying physical precious metals is rapidly becoming acknowledged more widely as an investment that will benefit you and your offspring in the future.
Whatever the price is for gold and silver, if the world’s currencies were to collapse, the purchasing power of those who have not accumulated gold and silver or other precious metals would get transferred to those that did, and that will be a mind-boggling quantity of wealth. More than in any other time in human history, people that own precious metals will be able to increase their standard of living exponentially during the coming upheaval, without being exposed to great risks.
Right now, the world is in the early stages of the next great bull market in gold and silver, and if not acted upon soon, you may miss the opportunity to make quick, easy, triple-digit gains. In the coming month Gold is to double and Silver to triple! Therefore, hurry up and buy what you can before the prices are too high to buy and it is too late. Gold and Silver will be the real winners, but this time in an absolute gigantic proportion of wealth transfer.
Knowledge is power that can be worn as a suit of armour, and Truth is a weapon that can be wielded like a sword, slicing through the propaganda of misinformation and deceit, laying bare the lies for all of us that are AWAKE, so now there is no fear but just enthusiasm to defeat the Deep State cabal for once and forever.
Panic and chaos will break out
The world’s silver supply would be gone in a nanosecond once the people realise there isn’t as much metal as is believed, because it’s a very small quantity available for sale. At this moment, there’s a shortfall in the world’s gold supply. The message is clear: Buy gold and silver coins and bullion now, for as much as you have liquidity available, and keep doing so till the prices escalate. The world is running out of silver, which makes Silver the dark horse in the market.
There is shortness developing in the market, and the central bankers are out of ammunition, so eventually, a tipping point will be reached, where the investment public completely loses faith in the U.S. dollar, and all other paper currencies. The day is coming when people will realise that holding a purchasing contract for gold or silver that doesn’t exist isn’t worth the paper it’s printed on, and this is also the case for all paper monies. Panic and chaos will break out. Prepare for a chain reaction collapse, wiping out everyone who owns paper!
Gold and silver have revalued themselves throughout the centuries and defeated all fiat currencies, bringing those fraudulent monies to justice. This is as certain as the sunrises in the morning. The honest physical precious metal investors will be rewarded with gains that will overshadow the stolen wealth by the Khazarian thieves.
Demise of paper currencies is a certainty
The flip side of credit is debt, and this is where the problem lies. There’s no limit to how much money can be created. In a world of real money, each additional currency unit represents additional wealth. But with fiat credit or debt-money it is different. With credit, spending can be increased dramatically. But there is a limit to how much can be borrowed. Eventually, a point is reached where the cash flow dries up because it is servicing the interest on the debt. At this point the system is insolvent and broken.
Fiat Currencies lead to corruption and a crushing debt burden, which are at the root of the world’s troubles. Virtually everywhere, governments and their citizens are borrowing more than ever before, and in many cases, they are far beyond any chance of orderly repayment. The point of no return has been passed – where even at zero interest, payments drown the ability to generate free cash to cover those payments. Consequently, the debt burden is growing greater and greater. It must be clear by now; the banksters thrive spectacularly when fiat currencies are in place, at the people’s expense.
When interest rates are pushed down by central banks to artificially low levels and held there for an extremely long period of time, credit expands and the burden of debt grows. That has been happening for almost four decades. And now, the entire economy depends on something that cannot continue, as debt cannot grow forever.
As long as rates stay low, the system is maintained and supported, but as the amount of debt increases, the quality decreases. Debtors’ balance sheets become weaker and weaker. Eventually, the credit markets change direction. Interest rates start rising. Then the weight of all that debt comes crashing down like an avalanche. And once it gets started, there is no stopping it.
The banking system is an absurd business-model; they lend money they don’t have and charge lenders interest on it. Add to this, the ‘fractional reserve lending’ that allows the banks to lend ten times more than what they have on deposit. In other words, they lend ‘money’ they don’t have and which doesn’t even exist, correctly called – credit money– while they are legally authorised to charge interest on it.
It does look increasingly certain that the end of the fiat money hegemony is in sight. The only questions at this point are: When does it end, and when does the real panic begin? Regardless of the timespan, the demise of paper currencies is a certainty.
The fiat economic system’s counterfeit money makes counterfeit public policy, and ultimately destroys an economy, a society, and a political system. In short, when money can be created by just tapping a few keys of a computer, people are brainwashed to believe anything.
Why gold is so useful as money
Those people may think that it is okay to shut down the whole economy, as they can cover the losses with “money from the government.” But the “money” from the government is counterfeit. Real money is part of the real world. It is limited, like time. It is impossible to create a surplus of it just because it would be convenient to have more of it. If governments want to fund one project with real money, they have to take the money from something else. That’s why gold is so useful as money. Gold is limited, like time itself. Each ounce of it has to be discovered, dug out of the ground, processed, and stored.
This is the way that gold connects “money” to the real world of time, sweat, toil, and risk. In that real world, any decision, any choice, must be considered in light of compromises. How much time will it take? How many resources will be required? What does it take away from the other things we want or need?
Usually, these questions are reduced to a single one: How much does it cost? But did anyone bother to ask that critical question as the COVID programs were rolled out – the Lockdown, the Rescue, the Pay-check Protection Program (PPP), and unemployment compensation? The lunacy of the unemployment bonus is obvious. The average recipient actually earned more money from unemployment compensation than on the job, where wealth was created. The economic law of honest exchange demands only things of real value instead of currency that can be manipulated. As German-American economist and philosopher Hans-Hermann Hoppe once said:
“By virtue of the saver’s saving, even the most present-oriented person will be gradually transformed from a barbarian to a civilised man. His life ceases to be short, brutish, and nasty, and becomes longer, increasingly refined, and comfortable.”
Everyone by now should know that today’s money is phony, all the compensation programs are fake, the economy is counterfeited, and the stock market is a scam.
How Booms and Busts are created
It’s critical to understand what’s happening in credit. The credit market is the largest financial market around the globe, it drives the entire economy. It is highly cyclical. When interest rates are low and credit is cheap, “booms” are experienced. When rates rise and credit tightens, “busts” are experienced. Since the 2008 financial crisis, credit has been kept cheap and easy to access. Creating, in the current credit cycle, the biggest excesses that ever have occurred in corporate debt. When the credit market starts to turn, as more and more high-yielding corporate “junk” bonds i.e. debt turns bad, the next crisis will be kicked off.
Many experts will tell that gold and silver generate no proper yield or income stream, but that isn’t true. First an example scenario to explain how precious metals are rightly employed creating an income stream for the long-term:
If a house was sold in 1971 for $ 20,663 and silver purchased for that amount, by January 1980 this investment would have outpaced real estate by a factor of 17, growing to $770,796. If you then sold your silver, you could buy eighteen median-priced single family homes, all in cash at the 1980 price of $ 42,747 per house and benefit from 100% of cash flows from these properties.
Today the situation is even better for a similar transaction. Real estate has become much more overvalued, and silver has become extremely undervalued. Measured against silver, the median priced single-family home in the US hit its peak in 2002, at a price of 38,123 ounces of silver, some two and a half times higher than at the beginning of the last precious metals bull-market in 1971.
When silver hit a peak in 1980 of $ 52.50, it was not atypical. When the gold and silver market explodes, the financial news will react just as it did in 1980, and the only thing to hear is about gold and silver. The scarcity of silver will go from something that a small fraction of the world population knows about today to something that everyone can become an expert on. It will turn out to be the Dutch tulip mania of 1637 all over again. Expect that less than 500 ounces of silver will buy a median-priced single-family house sometime in the future.
Riding the opposing cycle of the correct asset class
Therefore, buy silver now and wait till silver is overvalued again and real estate is undervalued.
Because both cycles empirically are dissimilar to each other. The best thing to do now is to join the flow of precious metals, by betting that they only go up from here to their true value, which is quite realistic and certainly possible. The winnings will likely be quite large.
In the above housing sample, even with 50% tax and other expenses included, you could still own twelve homes for rental income, against one home in today’s dollars. The biggest mean reversion in history is almost here, and be assured that every asset price over time always returns to the average value in the long run. Whether news is good or bad, once you are riding the cycle of the correct asset class as an investor, it doesn’t matter. Investors who are aware of this will experience a huge accumulation of wealth, whereas the ones that are caught unaware may end up with nothing but debt.
As encouragement to the Trump Team and the Patriots going ahead by removing the Deep State Globalist mafia, every awake individual can help by flying the American or your own national flag until after the next election on November 3. This is the very best visual demonstration of our solidarity for Q and the Trump Team.
Stay tuned – there is important inside information to come…