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There is much legitimate (as well as dramatic) talk about the failing US, its debased currency and its identity-fractured/inflation-taxed middle-class which has been increasingly described more aptly as the working poor.

The End, or Just Change?

But is America coming to an end? Will the USD lose its world reserve currency status? Will the greenback disappear? Will gold or BTC save us from all that is breaking before our media-clouded eyes and increasingly centralized state?

Nope.

America is slipping, but not ending.

The USD is being repriced not replaced.

The greenback is still a key spending, liquidity and FX currency. But it’s no longer the premier savings asset or store of value.

Gold (now a Tier-1 asset btw…) will continue to store value (i.e., preserve wealth) better than any fiat money; and BTC will certainly make convexity headlines in the future.

And yes, we all know the Fourth Estate died long before Don Lemon or Chris Cuomo stained our screens or insulted our collective IQ.

And as for centralization, it’s not coming, but already here.

Be Prepared Rather than Emotional

So, yes there is tremendous reason for informed and genuine concern, but rather than wait for the end of the world, it would be far more effective to logically prepare for a changing world.

Rather than debate left or right, black or white, straight or trans, safe or effective, smart (Barrington Resolution) or stupid (Fauci), we’d likely serve our individual and collective minds far better by embracing the logical and tabling the emotional.

Toward that end, we’d be equally better off relying on our own judgement rather than that of the children making domestic, monetary or foreign policy decisions from DC to Belgium…

Logically speaking, the USD (and US of A) is changing.

…click on the above link to read the rest of the article…

Why Is Gold Rising Now, Where Is It Headed Tomorrow?

April 20, 2024

Why Is Gold Rising Now, Where Is It Headed Tomorrow?

Needless to say, we at VON GREYERZ spend a good deal of time thinking about, well… gold.

The Complex, the Simple, the Math and the History

Year after year, and week after week, there is always a new way to examine gold price moves and decipher the obvious and not-so obvious forces which flow behind, ahead, above and below its monetary and, yes, metallic, move through time.

Today, deep into the early decades of the 21^st century, and well over 100 years since the not-so immaculate conception of the Fed in the early 20^th century, we could (and have) spent pages and paragraphs on key turning points in the rigged to fail history of paper vs. metallic money.

At times, this effort can and has seemed intense and even complex, with all kinds of historical facts, mathematical comparisons and “big events.”

The turning points of gold’s relationship with fiat currencies, and its role in preserving wealth, for example, are known to an admitted minority—as only about 0.5% of global financial allocations include physical gold.

Gold’s Language

Yet the need, role and direction of gold is fairly blunt, at least for those with eyes to see and ears to hear.

History, for example, has some clear things to say about paper money.

And so does gold.

From the Bretton Woods promises of 1944 and Nixon’s open and subsequent welch on the same in 1971 to the 2001 outsourcing of the American dream to China under Clinton (and the WTO) or the recent weaponization of USD in Q1 of 2022, gold has been watching, acting and speaking to those who understand her language.

The Big Question: Why Is Gold Rising Now?

…click on the above link to read the rest of the article…

The US Is Living on Borrowed Time

February 1, 2024

The US Is Living on Borrowed Time

In late December, I published a final report on the themes of 2023 while looking ahead at their implications for the year to come.

I repeated my claim that debt markets and debt levels made the future of Fed policies, currency moves, rate markets and gold’s endgame fairly clear to see.

Of course, as facts change, opinions change as well.

But the facts are only worsening, which means my opinions in late 2023 are only growing stronger as we conclude the first month of 2024.

Then as now, the debt-soaked US is tilting ever more toward policies which will weaken its currency, wound its middleclass and reward its false idols (and false markets) with even greater desperation.

In particular, some recent facts below are emerging which further support my otherwise sad conviction that the American economy (not to be confused with its Fed-supported stock exchanges) is literally living on borrowed time.

The Latest Bits of Crazy from the CBO

Almost a year ago to date, I was shaking my head and rubbing my eyes as the Congressional Budget Office (CBO) announced a staggering $422B Federal budget deficit for Q1 2023.

Now that’s a lot of borrowing in a short amount of time…

For some strange reason, this bothered me in early 2023, as I was still under this odd impression that debt, and hence deficits, actually mattered.

Fast forward to January 2024, and that same CBO has just announced a $509B Federal budget deficit for Q1 2024.

Folks, that adds up to annual deficit run rate of $2.2T.

Please: Re-read that last line again.

Do the Math: DC is Getting Even Dumber

…click on the above link to read the rest…

Hope Dies, Gold Rises

December 5, 2023

Hope Dies, Gold Rises

The primary stages of grief include: Denial, anger, bargaining, depression and finally, acceptance.

When it comes to grieving over the slow demise of the American economy, sovereign IOU/USD and the absolute failure of our “re-election-only-focused” policy makers, these stages of grief are easy to see yet easier to ignore.

But false hope won’t help us.

Denying a Recession

With the vast majority of sectors that make up the U.S. economy evidencing three months of negative GDP growth while a laundry list of leading homebuilder indicators (housing starts and prospective buyers) drops into recessionary red, I keep wondering when the recession debate will finally end.

Walmart is worrying, Jamie Dimon is worrying, commercial real estate delinquencies are rising and IPO markets are all but dead on arrival.

But that’s just the latest hard data.

One can cite everything from the Conference Board of Leading Indicators, negative M2 growth, yield curve movements and a drying repo market to make it empirically clear that the US is not heading for recession but has already been in one for nearly a year.

In fact, if we were to define a Depression by growth rates of inflation-adjusted GDP per capita, then factually speaking, we have also been in a quantifiable depression for the last 16 years.

Such data, of course, is depressing, but are we all still hoping for kinder facts or a political and monetary Santa Claus to cure our denial?

I for one favor preparation over denial.

Then Comes the Anger

Citizens storming the Capital, or grabbing guitars and singing “I’m taxed to no end and my dollar aint $#!T” are just the first signs of the anger stage.

…click on the above link to read the rest…

The Cycle of Evil

November 3, 2023

THE CYCLE OF EVIL

We are on the inevitable road to perdition for the world economy & financial system, ending in a potential global conflict of uncontrollable proportions.

Evil begets evil as The Cycle of Evil hits countries at the end of an uncontrollable debt expansion.

The pattern throughout history has always been the same – countries and empires, without fail, become victims of their own success -failure, whether it was the Mongols, Ottomans or the British.

As real growth ceases, a country starts to finance expansion with debt until it cannot even afford the interest on the debt, never mind the capital which it has no intention to repay.

At some point, the people, fearing a war or terrorist attack will approve of the leader’s fear mongering by supporting unlimited debt issuance. This is now happening in the US with regard to Ukraine and Israel.

Neither the US nor Europe is taking a single step to remedy the situation. Both are now in the Cycle of Evil of more deficits, more debt, higher interest costs, leading to more deficits, more debt higher interest costs, leading to ……………..

The Cycle of Evil is also accompanied by decadence and moral decline where leaders invent problems that are not real such as climate change, ESG (environmental, social and governance), forced vaccines and incarcerations, 25 new genders and other woke issues etc.

Few Americans understand that the next stage of the Cycle of Evil is about to hit them.

And even fewer Europeans have a clue that they will be dragged down into the same debt collapse quagmire.

The next stage will involve many banks failing, more than the FDIC or government can afford to save without destroying both the Currency and the Bond Market,

A collapsing currency and sovereign debt paper that no investor wants to touch with a bargepole is hardly the right climate for massive debt issuance.

…click on the above link to read the rest…

Debt, Currency Debasement & War—The Timeless Pillars of Failure

October 24, 2023

Debt, Currency Debasement & War—The Timeless Pillars of Failure

Below, we follow the breadcrumbs of simple math and bond market signals toward an oft-repeated pattern of how once-great nations become, well…not so great any more.

Debt Destroys Nations

Debt, once it passes the Rubicon from extreme to just plain madness, destroys nations.

Just ask the former Spanish, British or Dutch empires. Or ask the inter-war Germans. Ask the Yugoslavians of the 1990’s or ask a historian of Ancient Rome or a merchant in modern Argentina.

It’s all pretty much the same story, just different a different stage or curtain call.

Like Hemingway’s description of poverty, the process begins slowly at first, and then all at once.

Part of this process involves currency debasement needed to pay down more desperate issuance of IOUs, a process evidenced by rising rather than “transitory” inflation.

Thereafter, comes increased social unrest, and hence increased centralization from the political left or right in the name of “what’s best for us.”

Sound familiar?

Centralization—The Last, Failed Act

Centralization never works in the long run, but that has never stopped opportunists from trying.

Just look at our central bankers.

In a centralized rather than free market, the very name “central bank” should be a dead give-away as to their real role and profile.

As private central banks have been slowly increasing their hidden power and control over national markets and hence national welfare, the very notion of free price discovery in bonds, and indirectly in stocks, is now all but an extinct financial creature in the neo-feudalism which long ago replaced genuine capitalism.

How the Central Game is Played—From Temporary Prosperity to Permanent Ruin

When central banks like the Fed repress rates and print gobs and gobs of money, bonds are artificially supported, which means their prices go up and their yields are compressed.

…click on the above link to read the rest…

Rising GDP + Rising Yields = A MAJOR Sign of “Uh-Oh”

September 5, 2023

Rising GDP + Rising Yields = A MAJOR Sign of “Uh-Oh”

Have you heard the good news?

The Atlanta Fed GDPNow estimates a 5.9% growth in real GDP for Q3 2023. In nominal terms, we can even boast of an 8.9% surge.

What fantastic news! Growth! Productivity!

This must mean we can all breath a collective sigh of relief as Powell continues his valiant war against inflation as GDP rises, right?

I can almost hear the champagne bottles popping from the Eccles Building to the Bezos-owned Washington Post.

The financial wizards have saved us once again, right?

Wrong.

Oh, so, so, so, so WRONG.

Why?

Debt-Driven Growth is Not Growth, but a Slow Death Trap

As usual, the answer lies in math, history and, of course, THE BOND MARKET.

For years and years, I have tried to make one point (and indicator) almost reflexively clear, namely: The Bond Market Is the Thing.

This is because the bond market reflects debt forces, the most cancerous of all market killers once they metastasize from the acceptable to the fantastical, and the cheap to the unaffordable.

Today, we stare upon the greatest national and global debt bubble in history.

And the cost of that debt is getting higher, not lower.

This should be the key theme of every conversation, but instead, our citizens are arguing over gender neutral bathrooms and exciting politicos (opportunists) scurrying for power like donkeys fighting for hay.

Far better, in my opinion, if the people understood boring things like sovereign bonds…

In particular, they just need to consider and understand yields on Uncle Sam’s IOU (with particular emphasis on his 10-Year UST), which tells us the market’s measurement of the cost of debt.

…click on the above link to read the rest…

Will This Fall Be the Fall of Falls?

August 29, 2023

WILL THIS FALL BE THE FALL OF FALLS?

MAMChat Egon von Greyerz & Matt Piepenburg

This 25 minute video with Matthew Piepenburg and myself is probably one of the most important discussions that we have had.

For years we have both warned investors about the consequences of a system based on unlimited money printing, debt creation and money debasement.

The world economy and the financial system is now on the cusp of a precipice.

No one can forecast when the coming violent turn will come.

It can take years or it can happen tomorrow.

Future historians will tell us when it happened.

In the meantime investors have one duty to themselves and their dependents which is to protect their wealth from total destruction.

Money printing and debt creation have taken markets to dizzy and unsustainable levels.

Since Nixon closed the gold window in 1971, both global and US debt is up over 80X!

And asset markets have been inflated by this fake money with the Nasdaq up 120X and the S&P up 44X since 1971.

But the bubbles are not just in stocks but also in bonds, property, art, other collectibles etc, etc.

In our view, the time to pay the Piper is here and now. The consequences will be costly, even very costly for the investors who ignore this major risk.

Just as bubble assets can go up exponentially they can implode even faster.

RISK OF MARKETS FALLING 50-90%

Sustained corrections of 50% to 90% in stocks and bonds are very possible and when the bubble bursts it will go so fast that there won’t be time to get out or to buy insurance.

Whether the Everything Bubble turns to theEverything Collapse today or tomorrow, the time to protect your assets is before it happens which means NOW.

…click on the above link to read the rest…

A Catastrophic Debt Implosion Can Be Incredibly Quick

July 20, 2023

A CATASTROPHIC DEBT IMPLOSION CAN BE INCREDIBLY QUICK

Will the world experience a catastrophic debt implosion?

Just like the Titan Submersible that recently imploded, the global debt bubble can implode “within just a fraction of a millisecond”. More later in the article.

Are we now in the third circle in Dante’s Inferno?

Dante describes the 9 circles of hell. The 3^rd circle is Gluttony which is fitting for a self indulgent Western world with excessive consumption of both material and financial resources.

Each circle represents a gradual increase in evil, culminating at the centre of the earth where Satan is held in bondage. The sinners of each circle are punished for eternity in a fashion fitting their crimes.

Financial markets have also been dominated by gluttony for an extended period. This has led to the biggest asset bubble in history.

But in spite of unprecedented risks in investment markets, for the few investors making the right choice, now is a period of great opportunity not just to preserve wealth but also to enhance it. More later.

END OF THE CURRENT WESTERN EMPIRE

But here we are in the 21^st century with the current Western Empire in the final stages of a secular decline which looks very similar to the fall of the Western Roman Empire in the 5^th century. Wars, debts, deficits, collapsing currencies, decadence, corruption and socialism – Plus ça change (the more things change, the more they stay the same).

Whether this cycle is the end of a 100, 300 or 2000 year era, only future historians will know the answer to.

WAR DRUMS AND NATO

To diffuse the real reasons for the collapse of the Western economy and the Financial System, there is nothing like starting a war. Leaders love to play real war games although most of them have never been near the front line…

…click on the above link to read the rest…

Modern Currency Policy: Nations Compete, Citizens Suffer

June 28, 2023

Modern Currency Policy: Nations Compete, Citizens Suffer

Below we consider how modern currency policy may not be so good for, well, the people…

This is why gold inevitably enters the conversation, for unlike policy makers, this old pet rock garners more trust.

Gold, of course, loves chaos, tanking currencies and cornered, debt-soaked nations, the numbers of which rise with each passing day.

We see currency debasement as mathematically and historically inevitable, though we have no clue (no one really does) as to the precise date, trigger or time the already teetering fiat money systems fall over the global debt cliff.

We only know that the $300+T cliff is here, and that nations are racing toward it at historical speed, with equally historical consequences.

Physical gold holders, however, enjoy a certain and calm advantage: They don’t need to be precise timers; simply patient owners.

As for more signs of the move toward weakening currencies in general, and a weakening USD in particular, let’s look at some more history and current facts.

Hot vs. Financial Wars: Today’s Evidence, Tomorrow’s Polices

As headlines change with daily Western biases regarding the military war in Ukraine, America’s financial war with the East (i.e., China) will continue into the next generation.

It’s no secret to me, or many others, moreover, that the war in the Ukraine is a US proxy war against Russia, in which Ukraine (and its citizens) are merely a convenient battering ram against Putin.

That’s just my opinion, but we’ve seen this “freedom” movie before. Many times, and in many countries, none of which ended with much “freedom” …

But as to financial wars, they too are just an extension of politics by another means, and with the growing waves of de-dollarization rising in speed and height following the predictable ripple of effects of the 2022 sanctions against Russia…

…click on the above link to read the rest…

Will Nuclear War, Debt Collapse or Energy Depletion Finish the World?

February 18, 2023

WILL NUCLEAR WAR, DEBT COLLAPSE OR ENERGY DEPLETION FINISH THE WORLD?

Fragility has probably never been greater in history. Just three words encapsulate the destiny of the world.

The THREE words are: WAR, DEBT, ENERGY

A FOURTH word will financially save the ones who understand its significance. It will also play a major role in the world’s future monetary system. The word is obviously GOLD. As the world moves from a fragile debt based Western system to a commodity and energy based system in the East and South, gold will assume a strategic role in the monetary system.

WAR – WWIII

War is obviously a potentially catastrophic threat since the sheer existence of the world and mankind is now at maximum risk. Wars are horrible whoever starts them. Since the beginning of mankind there have probably been over 100,000 important wars and conflicts.

Wars are horrible whoever starts them. Most wars end in major fatalities and injuries and a massive human and financial cost. And at the end of the war, the situation is often worse than when it started, like in for example Afghanistan, Vietnam, Iraq and Libya which countries the US invaded unprovoked. The same will most probably be the case in Ukraine.

There are always two sides to a war. I learnt many years ago that before we judge someone, we must walk three moon laps in his moccasins.

So let us first walk in Putin’s moccasins.

The whole West hates Russia and have personalised it to Putin. Few realise that many of the people behind Putin are extreme hardliners and much more dangerous. Historically, Ukraine (like many European countries) has had a motley existence. Since the late 1700s to 1991 Ukraine was part of Russia / Soviet Union with a brief interruption after the Bolshevik revolution in 1917.

…click on the above link to read the rest…

Ominous Military & Financial Nuclear Threats Could Erupt in 2023

January 11, 2023

OMINOUS MILITARY & FINANCIAL NUCLEAR THREATS COULD ERUPT IN 2023

The world is today confronted with two nuclear threats of a proportion never previously seen in history. These threats are facing us at a time when the world economy is about to turn and decline precipitously not just for years but probably decades.

The obvious nuclear threat is the war between the US and Russia which currently is playing out in Ukraine.

The other nuclear threat is the financial weapons of mass destruction in the form of debt and derivatives amounting to probably US$ 2.5 quadrillion.

If we are lucky, the geopolitical event can be avoided but I doubt that the explosion/implosion of the Western financial timebomb can be stopped.

More about these risks later in the article.

There is also a summary of my market views for 2023 and onwards at the end of the article.

CURIOSITY AND RISK

With a business life of over 52 years in banking, commerce and investments, I am fortunate to still learn every day and learning is really the joy of life. But the more you learn, the more you realise how little you really know.

Being a constant and curious learner means that life is never dull.

As Einstein said:

“The important thing is not to stop questioning.

Curiosity has its own reason for existing.”

There has been another important constancy in my life which is understanding and protecting RISK.

I learnt early on in my commercial life that it is critical to identify risk and endeavour to protect the downside. If you can achieve that, the upside normally takes care of itself.

Sometimes the risk is so clear that you want to stand on the barricades and shout. But sadly most investors are driven by greed and seldom see when markets become high risk.

…click on the above link to read the rest…

Gold’s Climb Amidst Wisdom’s Decline

November 25, 2022

Gold’s Climb Amidst Wisdom’s Decline

As the latest headlines from the FTX implosion remind us yet again of a politicized and rigged market riddled with deception, gold’s climb becomes easier to foresee.

But first, a little philosophical musing…

Modern Policy: High Office, Low Wisdom

I have often referred to La Rochefoucauld’s maxim asserting the highest offices are rarely, if ever, held by the highest minds.

Nowhere has this been more apparent than among the halls of the physically impressive yet intellectually vacant Eccles Building on Constitution Ave in Washington DC, where a long string of Fed Chairs have been un-constitutionally distorting free market price discovery for over a century.

The media-ignored levels of open fraud and inflationary currency debasement which passes daily for monetary policy (namely monetizing trillions of sovereign debt with trillions of mouse-clicked Dollars) within the FOMC would be comical if not otherwise so tragic in its crippling ripple effect to the Main Street citizen.

From Greenspan to Powell, we have witnessed example after example of error after error and gaffe after gaffeon everything from mis-defining inflation narratives as “transitory” to re-defining a “recession” as non-recessionary.

And all this while the Fed (and its creative writing team at the BLS) simultaneously and deliberately fudges the math on everything from misreported CPI data to artificial U6 employment statistics.

Pondering the Philosophically Nobel Amidst the Administratively Dishonest

To any who have pondered the philosophical pathways (as well as elusive definition) of wisdom (from the ancient Greeks to the pre- and post-modern Europeans, romantic Emersonians, tortured Russians or enlightened Confucians), one common trait of wisdom through time, culture and language is the ability to admit, and then learn from, error–as any man’s journey is one riddled with countless opportunities for teachable error.

…click on the above link to read the rest…

$2 Quadrillion Debt Precariously Resting on $2 Trillion Gold

October 30, 2022

$2 QUADRILLION DEBT PRECARIOUSLY RESTING ON $2 TRILLION GOLD

A Lehman squared moment is approaching with Swiss banks and UK pension funds under severe pressure.

But let’s first look at another circus –

The global travelling circus is now reaching ever more nations just as expected. This is right on cue at the end of the most extraordinary financial bubble era in history.

It is obviously debt creation, money printing and the resulting currency debasement which creates the inevitable fall of yet another monetary system. This has been the norm throughout history so “the more it changes, the more it stays the same”.

It started this time with the closing of the gold window in August 1971. That was the beginning of a financial and political circus which continuously added more risk and more lethal acts to keep the circus going.

An economic upheaval always causes political chaos with a revolving door of leaders and political parties going and coming. Remember, a government is never voted in but invariably voted out.

What was always clear to a few of us was that the circus would end with all of the acts crashing virtually simultaneously.

And this is what is starting to happen now.

We have just seen a political farce in the UK. Even the most talented playwright could not have created such a wonderful merry-go-round of characters who we have seen coming in and out of Downing Street.

Just look at the UK Prime Ministers. First there was David Cameron who had to resign in 2016 due to mishandling Brexit. Then the next PM Theresa May had to go in 2019 since she couldn’t get anything done, including Brexit. Then Boris Johnson won the biggest Conservative majority ever but was forced out in 2022 due to Partygate during Covid.

In came Liz Truss as PM in September this year but she only lasted 44 days due to her and her Chancellor’s (Finance Minister) mishandling of the mini budget. They managed to crash the pound and UK gilts (bonds) on the international markets leading to the Bank of England having to step in. Both gilts, derivatives and UK pension funds were at the point of implosion.

And now the carousel has gone full circle with Rishi Sunak the ex-Chancellor taking the helm as Boris bailed out. Boris clearly decided that speeches and other private engagements would be more fruitful than being part of the circus. But he will most certainly attempt to come back.

What a circus!

It just shows that at the end of an economic era, we get the worst leaders who always promise but never deliver.

In a bankrupt global system, you reach a point when the value of printed money dies and whatever a leader promises can no longer be bought with fake money which will always have ZERO intrinsic value.

No one must believe that this is only happening in the UK. The US has a leader who sadly is too old and not in command. He has a deputy who is not respected by anyone. So if Biden, as many believe, doesn’t make it to the end of his period, the US is likely to have a real leadership circus. Also, the US economy is chronically ill having run deficits for 90 years. What keeps the US alive temporarily is the dollar which is strong because it is the least ugly horse in the currency stable.

Scholz in Germany was given a very bad hand by Merkel but has certainly not improved it since he took charge and Germany is on the verge of collapse.

Most countries are the same. Macron doesn’t have a majority in France and strikes are paralysing his country on a daily basis. And his new Italian counterpart, PM Georgina Meloni certainly doesn’t shred her words. Just watch her having a very aggressive go at Macron (poor video quality).

But for people (like myself) who have difficulty accepting the current wave of Wokeism in the world, Meloni’s attack on this fad and her strong defence of family values is a “must watch” (video link). So there is still hope when leaders dare to express views that most media including social media censor today.

DEBT BONDAGE

History has dealt with punishment of non payment of debt in a variety of ways.

In the early Roman Republic around 2,500 years ago, there was a debt bondage called Nexum. In simple terms, a borrower pledged his person as collateral. If he didn’t pay his debt he was enslaved often for an undetermined period.

Jumping quickly to modern times, it would mean that the majority of people, especially in the West would all be debt slaves today. The big difference today is that most people are debt slaves but they have physical freedom. Since virtually nobody, individuals, companies or sovereign states, neither has the intention nor the ability to repay debt, the world now has a chronic debt slavery.

It is even worse than that. The playing field is totally skewed in favour of the banks, big business and the wealthy. The more money you can play with, the more money you can make risk free.

UNLIMITED PERSONAL LIABILITY

No banker, no company management or business owner ever has to take the loss personally if he makes a mistake. Losses are socialised and profits are capitalised. Heads I win, Tails I don’t lose!

This Implosion Will Be Fast–Hold Onto Your Seats

July 4, 2022

THIS IMPLOSION WILL BE FAST – HOLD ONTO YOUR SEATS

The massive money creation in the 2000s has led to a debt and asset bubble, which is about to burst. Investors will be shocked by the speed of the decline and won’t react before it is too late.

The massive money creation by central and commercial banks in this century has resulted in a growth of global assets from $450 trillion in 2000 to $1,540 trillion in 2020.

DEBT TO GDP GROWTH

As the chart below shows US debt to GDP held well below 25% from 1790 to the 1930s, a period of almost 150 years. The depression with the New Deal followed by WWII pushed debt to GDP up to 125%. Then after the war, the debt came down to around 30% in the early 1970s.

The closing of the gold window in 1971 ended all fiscal and monetary discipline. Since then, the US and much of the Western world has seen debt to GDP surge to well over 100%. In the US, Public Debt to GDP is now 125%. Back in 2000 it was only 54% but since then we have seen a vote buying system with a money printing bonanza and an exponential increase in debt to 125%.

A major part of the debt increase has gone to finance the rapid growth in property values.

The table below shows that property has grown on average by 250% between 2000 and 2020. So individuals are creating wealth by swapping properties with each other. Hardly a sustainable form of wealth creation.

The exponential growth in property prices has been global although countries like China, Canada, Australia and Sweden stand out with over 200% gains since 2000. Most of the properties bought in the last 20+ years involve massive leverage. When the property bubble soon bursts, many property owners will have negative equity and could easily lose their homes.

…click on the above link to read the rest of the article…

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END OF THE CURRENT WESTERN EMPIRE

DEBT BONDAGE

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