While markets continue to go sideways, let’s take a moment to consider the Big Picture, which is what really matters.
Back in 2015, I wrote a long piece on what was going to happen in the next global collapse. I stood on the shoulders of giants, like Richard Duncan, Ray Dalio, and Mike Maloney. I also bought and read books about the collapse of Rome, the Mississippi Bubble in 18th century France, and the collapse of the Weimer Republic in the 1920s, and the end of the Gold Standard in the US in 1971. What did all of this reading have in common? Massive unpayable debts.
Did they default on that debt? No. The governments never defaulted on the debt. Instead, they printed paper currency to buy back the debt, or in the case of Rome, they diluted Gold and Silver with lead or copper, debasing the value of the money that looked the same but wasn’t.
What happens when you print tons of paper currency to pay off your debts, as Weimar Germany did in the early 1920s, when they were forced to pay reparations for the cost of World War 1? The Reichmarks printed were debased, devalued, to the point that people would carry wheelbarrows full of paper currency to buy a loaf of bread. Yet, Germany never defaulted on the debt, they just printed more and more Reichmarks until they became essentially worthless paper. Germans used the currency to light their fires to keep warm at night. That says it all. The amount of the debt stayed the same, but the value of the debt was reduced to near nothing, because it was paid off with worthless paper.
When a currency is debased to the point of being worthless, what happens next? The prices of goods and services soar! More and more printed paper reduced its value, and the prices of everything went up. Simply put, when paper currency becomes worthless, the prices of everything soars, causing hyperinflation, which is what happened in Germany. The debt remains the same, but the value of the debt collapses. The debt is erased with worthless paper.
Why do I bring this up? Because back in 2015, I learned that governments never default on massive debts, they simply inflate the value of the debt away with worthless currency.
The US has $39 trillion in debt and climbing annually. Global government debt is 111 trillion!!! Unrepayable! So what do they always do? They print more and more paper currency or digital currency, which becomes worthless over time, and reduces the debt to next to zero. When I discovered what was going to happen in 2015, I started buying physical Gold and Silver, because they can’t print Gold or Silver and its scarce.
Fast forward to today… The US and the world will print! The dollar will collapse just as the Reichsmark did. Hyperinflation will kick in, or as I prefer to say, “hyperstagflation”. Prices of necessities such as food and energy will soar! But everything else will collapse: stocks, businesses, housing, bonds, currencies, all except Gold, Silver, Farmland, and food and energy. Why “Hyperstagflation”? Because the prices will soar but the economy will collapse, unemployment will reach record highs. All aided by the introduction of artificial intelligence, AI.
How high could Gold and Silver go? Who knows? If the currency is worthless, then Gold and Silver become “priceless”.
In a proverbial nutshell, you need to buy physical Gold and/or Silver, and some Farmland, 1-2 acres would be sufficient. These are the safe havens for what’s to come, the next Great Depression. There will be two classes in the future, those who own such safe havens and the have-nots, dependent on welfare from the government. UBI will be rolled out, making inflation even worse! Because more paper currency chasing the same or less goods and services, guarantees hyperinflation.
The powers that be typically kick off a world war to distract people from the coming collapse and to devalue the currency. Wars are expensive, debt is raised to fund them, and they are paid for by printing more worthless paper. It’s not rocket science. Richard Duncan and many others have been warning about this for decades now.
I recommend you listen to Ray Dalio below, he says it all and far more eloquently. It could literally save your life. Buy physical Silver while you still can and just wait for what happens next. I bought Silver in the teens back in 2015, and it hit 122 in January. It could go to 500, 800, a 1000, or more, when the next parabolic move takes place.
Sounds ridiculous? As Ben Roth stated in his book ‘The Great Depression, A Diary’, you could buy a house with 1 Silver coin in the 1930s, you could buy a whole street with one Gold coin.
Then there is the story of Hugo Stinnes:
Stinnes became known as the “Inflation King” during the Weimar hyperinflation of the early 1920s.
· He borrowed heavily in rapidly devaluing German marks.
- He used that cheap debt to buy real assets — factories, coal mines, railroads, shipping companies, newspapers, hotels, and foreign currency holdings.
- As inflation exploded, his debts became almost worthless while his hard assets retained value.
By 1923, he controlled a massive industrial empire and was considered one of the richest men in Europe — sometimes described in popular accounts as among the richest people in the world.
Hugo Stinnes and other Germans protected themselves during hyperinflation by moving into hard assets and precious metals.
Richard Cantillon did the same thing in France ahead of the collapse of the Mississippi Bubble in 18th century France. He saw that everyone was buying Mississippi shares and believed that it would all come crashing down soon. So, he sold all his shares to the Banque de France, and exchanged them for physical Gold and Silver. He was considered the third richest man in the world at the time.
The smart money saw the writing on the wall and got out before the collapse. As Baron Rothschild famously said: “Buy when there’s blood in the streets, and sell when everyone else is buying.”
This is the big picture. Silver is my preferred purchase, alongside side some farmland to grow food. I no longer own a house and I am waiting for the housing market to collapse. I rent. I suggest you do the same.
This is NOT financial advice. I am just sharing what I am planning to do and why I am doing it. I’ve been expecting this for years now, and now the time is ready. If I get a chance to buy below 60, I’m going “All-In”.
Now I recommend you watch Ray Dalio’s recent youtube video.
Cheers, David
