In past issues, we’ve documented increasingly concerned billionaires warning of dangerous economic times. Many have favored gold as an alternative allocation in a world where $13 trillion-worth of debt is negative yielding, interest rates are artificially suppressed and we’re on the brink of major wars.
The newest addition to this gold-loving billionaire's club, is none other than hedge-fund manager Paul Singer. At CNBC’s Delivering Alpha Investors Conference this week, the founder of the $27-billion Elliott Management Fund, the 17th largest hedge fund in the world, mentioned that at current prices gold is “undervalued” and “underrepresented in many portfolios as the only ... store of value that has stood the test of time.”
Singer, along with numerous other hedge-fund managers, has been increasingly outspoken in his criticism of the Federal Reserve and other central banks for creating dangers in the market unlike any in what he terms the “5,000 year-ish” history of finance. Singer noted that “it's a very dangerous time in the global economy and global financial markets."
This quote is frighteningly similar to the response given by Donald Trump on Fox Business not long ago when he was asked if he had money in the market. He answered, “I did, but I got out,” and then went on to say that he expected “very scary scenarios” for investors.
Singer also stated that he thinks owning medium- to long-term first world debt is a “really bad idea”... and then proceeded to tell listeners to sell their 30-year bonds.
Earlier in the conference, prior to Singer, Ray Dalio who is the manager of the largest hedge fund in the world, Bridgewater Capital, was also vocal about the diminishing returns provided by government debt held by central banks. “There’s only so much you can squeeze out of the debt cycle," he said. He went on to say that central banks are at a point now where their ability to stimulate is limited.
Seated next to Dalio was Former Treasury secretary Timothy Geithner who voiced concern about limited “tools in the keynesian arsenal,” that probably wouldn’t be enough to offset the next recession.
Geithner obviously believes that a recession is on the way. Dalio and Singer are trying to convey the same message. A massive crunch is looming.
We agree with them, although we believe Geithner was sugarcoating what’s to come.
After all, we are on the precipice of a crash of biblical proportions according to the former chief economist of the Bank for International Settlements, William White.
We have mentioned his quote numerous time here at TDV but feel it’s important to reiterate because of its magnitude: “The only question is whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly. Debt jubilees have been going on for 5,000 years, as far back as the Sumerians.”
As the Fed considers its second rate hike in 10 years, Singer condemned policy-makers for acting with “amazing arrogance” when he and others had warned of a mortgage crisis prior to 2008.
What he and those who agreed with his stance don’t know, or at least won’t state publicly, is that these shoddy central bank policies are detrimental by design. In other words, their sole purpose is to destabilize the world economy.
This deliberate market sabotage is necessary for the transference of power from the more developed nations to less developed ones. Ultimately, the idea is to eliminate smaller regional and national central banks. Once things get bad enough, these smaller banks will be blamed for provoking a given crisis. And, secondarily, the end goal is to blow up the entire system in order to bring in the one world government and central bank.
The elites have used the same tactics time and time again throughout history. First, they create the problem, then there is a reaction, and then finally they come swooping in to “valiantly save” the day. It's happened numerous times before.
And it will soon happen again.
Of course, the globalists have demonstrated that every intervention only makes situations worse.
We reported on the blatant thievery going on at Wells Fargo in our last article and noted how the elites were probably laughing hysterically at what they’re able to get away with. They were even able to convince many younger American voters that “democratic socialism” would be their savior, as seen by the significant, youthful support for Bernie Slanders. Debt and currency crises have already started to materialize, as we’ve seen in the socialist utopia that is Venezuela. If this is any indication of what’s to come, the future is looking awfully gloomy.
As Singer and others including Dalio have mentioned before, the most tried and true measure of wealth and value is gold.
At TDV we provide unique Austrian-economics based analysis from the anarcho-capitalist pespective of the state of the world’s economy, as well as suggestions on how to protect your assets in these tempestuous and unprecedented times.
Jacob Rothschild, a member of the family partly responsible for the creation of all this chaos, even said himself that we are in “uncharted waters” and that it’s “impossible to predict the unintended consequences of very low interest rates.”
We have a pretty good idea of what the consequences will be and we’re taking action to protect ourselves and even profit from them. Rothschild seems to know the consequences, as well, as he has been buying up gold and selling the stock market and the US dollar.
You can survive and profit from the orchestrated collapse too. Subscribe to TDV’s newsletter here to receive constantly updated information on how to protect your family and friends.
In the end, it is getting truly bizarre just how many billionaires, central bankers and others of note are all warning of the coming collapse. We’d almost begun to worry that they were going to pull a switch-a-roo on us, but if you asked the great majority of investors and financial analysts, they’ll tell you that they see nothing but smooth sailing ahead.
So, while many are warning, many are hearing, but not listening. The bible said something about that, I believe.
I think even gold is gonna go down the hole. Cryptos are gonna be where the value goes, for one simple reason. Gold is controlled already by the very same powers that are causing the problem in the first place. They will ditch the gold as fast as they can as a last resort.
Silver maybe will stand up, but I am betting on doom for gold.
And same reason why I would bet against bitcoin, since I am pretty sure at least a quarter of its value is covert CB holdings.
Up or Down for Gold, does not matter... THIS is what matters ---v
Digital gold aka Bitcoin is the answer.
l0k1 is right. The Gold To Housing Ratio is giving a sell signal to gold:
https://steemit.com/gold/@maarnio/the-gold-to-housing-ratio
If the internet ever crashes, crypto-currency is fucked... I think we need to get a good balance of money, crypto currency, and something with value (like gold). And maybe we'll move past any currency one day...
The internet will never crash. Isolated, centralised networks crash. Distributed networks, they don't crash. Sometimes they may fragment for a while if a major backbone goes out, but they won't go out all at once. All the undersea cables are optical. Most of the land based backbones are now optical. We aren't in the doom of the solar flare situation of the internet anymore.
Even if half the world's mains power distribution networks went out, it isn't going to affect everyone all at once, and the providers will be rolling out their backup systems within a day if not sooner.
The solar EMP scenario is less likely than ever. We are well past the most recent solar maxima and though certain politicians are talking up nuclear war nonsense, I think that with the youtube addicts out of supply the pitchforks and flaming torches would see an end to such nonsense pretty fast.
And 'move past currency'? Do you understand what a currency even is? There has never been such a globally connected currency system ever. Most banks are laying billions into moving to distributed systems because of precisely the reasons I mention. The USA is becoming a major liability for the rest of the world. Their power system, it really could go all the way out, for days, maybe even as long as a week. If Yellowstone blew up, and it could, that would be pretty serious, and there is no other place in the world where a volcano could cause so much damage, the biggest one is in the USA. The banks are sick of being held hostage by the payment processing networks in the USA, and I think the 'USA going bananas' is one of the reasons why everyone wants to stop being dependent on them.
Even if somehow, the global banking cartel centered in New York and London were to have their way, and dominate the global money market, it would not last. For all the same reasons. Brittle, centralised, top down networks are unstable. China and Russia's economies have bounced back and are mitigating their problems caused by the bureaucratic infrastructure because they are decentralising, building more horizontal connections between each other.
No, currency is never going away. And a globally connected, failure resistant, distributed crypto currency system, such as is growing now at an ever increasing rate, will connect markets better than they ever have been connected.
Markets can have big nasty burps, now and then, but the problem usually arises because of one centralised network system going down. This has always been true, going all the way back to before the Roman Empire. It's the same reason why there will not be 'Only One Cryptocurrency System'. The same horizontal connectivity issue, the same network redundancy and failure resistance. If bitcoin's code were to be broken, it could take it out for a few days. But people would have backups in other currencies.
Economic doomsday is now less likely than ever because of cryptos. Gold cannot travel around the world at the speed of light, across hundreds of parallel links, undersea cables, satellite links. Crypto networks don't use that much bandwidth. It would take such a percentage of them going down all at once for there to be more than a minor panic.
I remember MtGox. I remember Bitfinex. I don't think anyone wants these things to happen again.
Saw your interview with the two DJ's and the lady on youtube. Got me to post my first post here on Steemit. Thanks for the info and all you do.
Gold is great, but still can't use it for hardly anything...
For us, simple non-millionaires it is still the best to invest time and money in knowledge (especially knowledge you can use in a post apocalyptic world), or tools, solar panels, bicycles or something. Things you can use, even if there's no economy, no electricity, no state, no nothing.
When the shit hits the fan, you might just have to pack up and leave civilization..
It is hard to use gold to purchase goods in a normal economy. However all you need to do is look at the world economic condition and see that things will "go south" soon. That is when gold, silver, bitcoin or other ecoins may be used to barter with. Gold and silver could be used locally, but for a buyer to make long distant payments you need a currency that is easily transferred to the seller. That may be bitcoin. I like to keep my options open as much as possible. @gamgam
I think I'm missing something with Bitcoin. I understand the basis of it but in order for bitcoin to work doesn't it require the internet? I'm thinking that in a desperate situation the internet might not be as robust as people think. Especially if there is some organization that controls the root servers. Am I missing something here?
I see cryptocurrencies as another opportunity to diversify, although as you point out @arnoldz61, Crypto is a hedge bet that the apocalypse will not be equally distributed. If it isn't, there could be vestiges of the old backbone still blinking like a hyper chipmunk on crack (blinking, as in ones & zeroes). Some other possibilities for post-crash cryptocurrency connectivity are mesh networks, radio networks and a few other hardware heavy point to point options, like microwave, if I'm not mistaken.
Admittedly, I'm not familiar with the network requirements of the blockchain, but if there is anything running and spread wide enough to support activity - that cryptocurrency could come in handy. Imagine ordering supplies from a neighboring country that is functioning at a much higher level, for instance. or even contracting a retrieval op from said functioning Iceland, I mean, country.
I don't think a radio signalling network could handle the data flow needed for a block chain to work. And why bother with any currency, unless you have more than 100K in your account. We don't need wealth, we need food and shelter, so let's take care of that. We need to be independent.
@dollarvigilante
If everything collapses do you really thinking people are going to run around with gold and silver bars if 99.9% of the people do not own any?
Sometimes I can't even comprehend how people come to believe their tinfoil end of the world scenarios when their own evidence falsify their own prediction...
that's like potato I.Q level things to compehend
People will be desperate to be able to exchange goods. Gold and silver and Bitcoin may be what people will turn to. @gamgam
There actually is a thriving market for average joe bullion. There are two shops in my large town/county hub.
It is tied in with coin collecting. Private mints produce coinage to sell at exorbitant prices, simply because it's a brilliant Zombie coin. I suppose that if you've been buying precious metals for some time, and it is sensibly affordable, sure a zombie strike would be boss! Ha, ha, ha, forgive me. Sensible options include the 1oz .9999 fine silver, US mint produced Walking Liberty, often priced only slightly above spot.
So there just might be a LOT of people and merchants ready to accept precious metals for services and trade.
Realize real eyes that real lies relies on real eyes.
Lots of supply right now on the market which most likely is driving down the price. When the price is high again they will sell off and repeat the process all over again while leaving you with the bag of overpriced gold.
There are many places in the world right now that will soon open new gold mining facilities which will drive the market down even more.
It took me five seconds to find the info on Google. I'm sure if I spend more time researching it I can find a lot more.
Gold by the numbers
http://www.numbersleuth.org/worlds-gold/
Now I'm not saying buying gold is not worth it. Just ask yourself how are the wealthy people of the world able to make so much money off the backs off the uninformed.
I hope you guys are stacking Gold, Silver and Bitcoin!
not sure that'll do any good. I'll rather stack shoes instead XD
That does make for a good diversified alternative combo platter.
The fact that this type of journalism holds this much value on Steemit is making me lose hope real quick.
I'm very new here, so pardon my big honking nose & BUTT - why don't you elaborate and provide food for thought rather than just casting a heavy disparaging statement? Frankly, your comment is as unhelpful to Steemit as that which you claim to have found in this blog post. Was it just that you don't agree with certain aspects or did you find it poorly written?
Jeff,
Great post as usual. Just hoping to pick your brain a bit. So assume that the Shemitah cycle is correct and this Sept/Oct is the start of the big one, how do you see (and at what speeds) the employment sector faring?
How quickly (if at all) will we start to see massive biblical layoffs in this scenario? Thank you.
If it happens: immediately.
Thanks for replying. Much appreciated.
Any possible signals a day or two before?
And yes, thank you, @dollarvigilante for the content!
Hopefully there will be a delay :)
@dollarvigilante...I believe we are close to Start Trek days in which we will not have #money. We will be valued based on what's in our head. Hope you can read my article on human capital deepening and give me your take on this...how do we make #money when there is no more? Would love your take on this concept. Thanks.
The only reason why the Star Trek "economy" works without any sort of money is because they've eliminated scarcity. They can use replicator technology to create whatever they need.
But even then, not all things can be replicated: Things of subjective value like writing, art, film, even new inventions will still require work by human hands and will be valued differently by different people. There will always be markets for something even if basic necessities are no longer scarce.
P.S. The Star Trek economy is all mixed up and seems to change from episode to episode.
It's called UBI, Universal Basic Income, and I highly recommend looking into it.
Interview on Basic Income with Scott Santens
Just a legal ponzi scheme.
@dollarvigilante
Thanks For Posting This
I Agree With This Post
When will this all happen?
2nd October according to Dollarvigilante's analysis of the Shemitah
That could be the peak day for gold.
All indicators are pointing towards a strong bullish move on the gold price. So the peak day would probably come much later.
We will likely see $1400 in October, but what happens after that? Have you looked at the gold to housing ratio?
No I have not, but if we look at 2008, I guess people will be happy if they can just keep their houses...
In Sweden we haven't yet popped our housing bubble, so that's probably on its way.
But considering that many say that this will be the worst one yet...there's no way to really call how things will become. The rich are saying "go to gold". Which is probably because they bought it when it was at its lowest point...
My suggestion is to stock up on supplies... :/
Personally I don't really have the resources to do that, but I'll be keeping an eye out on the 2nd of Oct and be quick to run down to the store if I see the trends going in the way people fear.
Here is the article:
https://steemit.com/gold/@maarnio/the-gold-to-housing-ratio
And yes I am still long gold and gold miners.
While I'm not convinced about the global conspiracy leading to the one mega-central-bank creation, I like the part of your analysis where you give a perspective on the gold market.
Will you elaborate more on the investments strategies that you recommend (e.g. precious metals/crypto assets portfolio)?
Conspiracy theories aside, conglomeration is the natural course of action for most businesses and industries. Look at the number of food processors. They are all under the same umbrella mega corporation. The number of banks have been reducing since the beginning of 20th century and they are now engaging in total warfare with ever more destructive financial instruments.
It will only be a matter of time before the whole thing comes crumbling down with only one remain as victor. There is simply no other way.
I think it may be the trend, but it's gonna be difficult to actually end up with just one regulating body simply because of human factors. It has to be such a perfectly coordinated system that doesn't exist so far..
It's going to be a really bumpy ride regarding economics in a close future. And there has to be a major conflict to level the shit we are curently in . Billionares sharing their fear globaly thru news and i think they are testing the ground for something big. Is it meltdown of money as we know it or something else we will see soon enough.
Just hoping I can afford some more silver in the next couple weeks...
good choice - Silver could outperform Gold in the coming months / years
I believe Silver has much more upside than Gold! It's definitely the better investment in terms of ROI
agreed, that's where my spare fiat is going
too much money in our life...but without them our life would be so hard)
The timing is perfect for Digix DAO, v2.0 pending - dgx.io - yeah we live in strange times
Good job.
Geithner was sugarcoating? I don't know if any of the Keynesians forecasting trouble understand just how bad it could get (and I'm assuming he's Keynesian). Even if they expect something twice as bad as 2008 they're probably ill prepared.
I thought the world was ending last Friday...?! If you had bought the close on any major US stock market average Friday you would be up 3%+. If you bought Gold, you'd be down 1%...
The notion that gold will be a safe haven when the world's credit fueled bubble pops is misguided. If that really happens and things become as dire as you think, you will want to own real assets not stocks or gold... how do you eat or drink gold?!
Gold only works for small shocks and hyper inflation.
Interesting! Watching, reading and learning. Thank you.
GOLD GOLD GOLD..!! Easy upvote..!! Another great piece and thanks for sharing. Happy to upvote and share this on Twitter✔ for my followers to read. Cheers. Stephen
I'm a subscriber and I find real value in the package Jeff puts out.
I love gold on many levels and want to invest more but silver just feels so right. I'm putting my marbles on silver!
People that don't have a lot of money would be better off investing in Bitcoin and alt coins at this point. Gold is very expensive to own. There is a very large markup to acquire gold, and even worse when you try to trade it for cash. The price of gold has to move significantly (15% or more) before it can show any sort of profit. I own a few ounces of gold coins and just hold simply because the price to sell is too expensive.... and it has gone up maybe $100/oz since my purchases.
Good is the safe heaven during times of uncertainity
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It is a scary time we live in.
dollarvigilante is now unable to raise even a thousand dollar? LoLz... what a shame! This is what happens when money is thrown (Ref: Steemit Wonder Comments) at people, who immediately takes it out of the ecosystem.
Good to see you still posting on Hive.