FIRST QE THEN QT THEREAFTER TE –THE END

Where have all the dollars gone?
Long time passing
Where have all the dollars gone?
Long time ago
Where have all the dollars gone?
Uncle Sam has spent them everyone
When will he ever learn?
When will he ever learn?

When Pete Seeger wrote the famous song “Where have all the dollars flowers gone” back in 1955, little did he know that the total US debt which then was a few hundred billion dollars, would 63 years later be almost $70 trillion.

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THE US IS DEAD BROKE

“The rich rules over the poor, and the borrower becomes the lender’s slave.”
– Solomon

This is the story about Debtor, a newborn American baby. Debtor has just been born into the greatest economy in the world, a land full of promises and opportunities. This is what his parents tell him. But unbeknown to Debtor, he has been given a very bad start in life. Because the parents haven’t told Debtor, and how could they since they are not aware themselves, that he starts life with a massive debt burden that will grow manifold during his lifetime.

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US DEBT EXPLOSION & WEIMAR II

Can investors really be that wrong? Global risk is today greater than ever in history and at the same time the great majority of investors show no fear at all. There are so many potential catalysts that could shake the world economy out of its sweet dreams into a living nightmare that it is impossible to forecast where the trigger will come from. It could be a debt collapse in Japan, China, USA, Eurozone or emerging markets. Or it could be a currency collapse in any of those regions. Or it could be a stock market collapse, or it could be ……, or it could be……

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FOLLOW THE MONEY – FOLLOW CHINA, RUSSIA AND INDIA

Whilst the US government worries about the military threat of Russia, and the trade deficit with China, they show no concern for the real problems. To understand what is really happening, all we need to do is to Follow the Money. The flows of real money reveal where global economic power is moving.

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FOLLOW SWISS PENSION FUND – BUY GOLD – “DON’T WORRY BE HAPPY”

Brexit, Quitaly and Grexit. Debt Defaults, Stock Shocks, Bond Bubbles, Properties Popping, Derivative Defaults and Banks Busting. Well that is just some of the events that twill take place in the next few years. But the world is living in ignorant bliss of what is coming next. As the song tells us:


“In every life we have some trouble
But when you worry you make it double
Don’t worry, be happy
Don’t worry, be happy now
don’t worry”


Well this well-known song says it all. Risk in the world is growing exponentially but no one is worrying.

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ITALY, HYPERINFLATION AND GOLD

The ECB (European Central Bank) just had its 20th birthday. But there is really nothing to celebrate. The EU is in a total mess and the Euro which was launched on January 1, 1999 is a failed currency. Every President of the ECB has had to deal with fires that had very little to do with price stability but were more a question of survival. Most of these fires were a lot more serious than the candles in the Euro cake on the left which Draghi is trying to blow out. During the French ECB Trichet’s watch, he had even bigger fire to blow out which was the Great Financial Crisis that started in 2006.

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GOLD – THE ONLY MONEY THAT CAN’T BE DEBASED

In 1980, global assets, including property, were less than $20 trillion. Today almost 40 years later they have grown to $524 trillion. That is a compound annual growth rate of 9% which is quite remarkable for a 38 year period. Global assets have gone up 26 fold during this period. In the same period, gold went from an average price of around $650 in 1980 to $1,300 today.

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WILL POVERTY, DISEASE AND WAR LEAD TO 3 BILLION FEWER PEOPLE?

There are 51 million American households that cannot make ends meet. This means that 43% of American households can’t afford a basic middle class life. Of these, 35 million are dubbed ALICE which stands for Asset Limited, Income Constrained, Employed with a further 16 million households living in poverty. It is absolutely remarkable that in the world’s biggest and “richest”country, just under 50% of the households are struggling to afford a basic middle class life and that 50 million people live in poverty.

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THE MOST INGENIOUS INVENTION IN THE HISTORY OF FINANCE

We are now in the final stages of a journey which by future historians will be seen as unreal as Lewis Carroll’s “Alice in Wonderland”. Just like Alice called the “Mad Tea Party”, “the stupidest tea party she had ever been to”, the last 100 years could be called the Craziest Extravaganza in history. At the end of the story the Queen of Hearts shouts “Off with her head”. But Alice is not afraid and calls them all “A pack of cards” before she wakes up.

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GOLD IS GOOD – GREED IS NO GOOD

It can’t happen here! What is happening in Venezuela and Argentina cannot occur in Western economies. That’s at least what markets believe with stocks and most bubble assets remaining in cloud cuckoo land. Rates in Argentina have just gone to 40% to protect the currency. Anyone who believes that rates in the US will remain at current low levels or that German and Japanese rates will remain negative has a massive shock coming.

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GOLD HOLDERS – CENTENNIAL OPPORTUNITY

Strategic investments are made for the long run and with no intent of short term gains or concern of short term fluctuations. This kind of investing is based on buying undervalued and unloved assets and holding them for a very long term. This is what we did with gold in early 2002 for our investors and ourselves.

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GOLD 75 MILLION BOLIVARS – WILL HAPPEN IN US$ AND EURO TOO

The coming hyperinflation will start slowly and few people will realise what is coming. But once the first real inflation signals are appearing, the process will speed up fast as the currency debasement accelerates. Right now we are most probably seeing the first signs of inflation. The rising CRB index, together with rising oil, silver and interest rates are all telling us that inflation is coming. Initially, we will see a gradual increase but soon inflation will accelerate until we in the next few years reach hyperinflation.

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GOLD SHOULD BE $16,450 & SILVER $761

The super powers in the West are doing what they can to provoke Russia and indirectly China and Iran into a world war. Most people alive today were not adults when WWII started and therefore did not follow the lead up to the war. But today the whole world can watch how the West has chosen to attack a country which has no major significance geopolitically and does not threaten any other country. Still the West clearly knows that bombing of Syria can start a global conflict with potentially horrendous consequences.

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AS GOLD BREAKS OUT – THE WORLD IS ON THE PRECIPICE

As the world is standing on the precipice of a total breakdown, both economically and geopolitically, an obvious question is: “Where is the money coming from” to save the world from perdition. The same question was asked to Maharishi Mahesh Yogi in the 1970s when he was starting a global spiritual project. Maharishi was the founder of Transcendental Meditation and known as the Guru of groups like the Beatles and Beach Boys. When asked “Where is the money coming from”, he replied “from wherever it is now.”

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WITH EXTREME RISK, PREPARE FOR A BROKEN WORLD

Between today and 2025, the world will be a very different place. We can learn nothing about the next 4 to 7 years from government, central bank or media propaganda as they neither understand what will happen nor tell the truth. But we can learn a lot from history. Most people rely on the internet for information or news but most of it is either indigestible, misleading, fake or just too overwhelming to comprehend.

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TRADE WARS, PETROYUAN, DEBTS – $32,000 GOLD & $500 SILVER

Is this it? Is the bull market finished and the good times over? Well, they could very well be. We are looking at a world which is rotten to the core, a world which is built on debt which will never be repaid. And a debt which is artificially supporting $100s of trillions of assets and quadrillions if we include derivatives. The supposedly most powerful economy in the world (the US of course) is now so indebted that it needs to fight the whole world in all kinds of different wars for its survival, with the latest being a trade war.

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FAKE GOLD – SILVER EXPLOSION – END OF BULL MARKET

In the US, fake gold is now a growing problem that is not being tackled. Congressman Alex Mooney (not Money!) has just written to the US Mint of the growing problem of high-quality counterfeits. He also wrote a letter to the Mint in November 2017 but the Mint responded that the problem was not significant. But the US Secret Service has since briefed the office of Congressman Mooney about the extent of the problem and the lack of supportive actions of other agencies. There we have it – a complacent Mint on the one hand and a Secret Service which is involved in fake gold on the other hand. So this is clearly a major problem.

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DERIVATIVES – A RECIPE FOR DISASTER & SYSTEMIC COLLAPSE

Gambling is according to Wikipedia the wagering of money (or something of value) on an event with an uncertain outcome. Three elements are required for gambling, Consideration, chance, and prize. Thus, you make a bet and if you are lucky you win a prize but you can also lose it all. Gambling has been around for thousands of years and maybe longer. The first 6-sided dice dates back 3000 years. Eventually gambling became more organised as casinos were established. The first well known casino was set up in Venice in the early 1600s.

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CENTRAL BANKERS NEVER GET IT RIGHT

Central bank heads have been at it again last week. And they have clearly all been singing from the same hymn sheet. The messages have been very similar from the bosses of the Fed, ECB and BOJ. The head of the Swedish Riksbank had a different and much more interesting message. More about that later.

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SOCIALISM – A GUARANTEED ROUTE TO HYPERINFLATION

Gold is hated by governments around the world because it reveals their deceitful actions in totally destroying the economy. It is not an accident that gold is the only money which has survived for 6,000 years. Gold is the only money that tells the truth. And gold is nature’s money which means it cannot be destroyed and it cannot be manufactured.

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