We’re at the end of the longest boom in history, and the debt levels and budget deficits of many of the world’s leading countries are far beyond anything the world has ever witnessed.

  • Moreover, the greatly expanded level of currency creation through Quantitative Easing is far beyond any level previously seen. This is an end-run tactic, designed to buy a bit more time, but ensuring that, as the nascent collapse unfolds, it will be the greatest crash in history.
  • And that leads us to the discussion of real money: gold and silver. They remain as real as they’ve always been. For over 5,000 years, people have returned to precious metals in times of economic crisis. Not surprisingly, the value of gold goes up at such times, sometimes dramatically.
  • At the same time, when the amount of available money contracts – and most people have far less of it than they did before the crisis – historically, the value of assets drops dramatically. This is due to the fact that, strapped for cash, people try to sell assets, and with the great majority of people attempting to do so, their value on the open market tends to drop dramatically.
  • The real measure of wealth is not the amount you possess, but the amount you possess compared to others. And by extension, what you are able to buy when you’re one of the very few who hold something of perennial worth.
  • In a crisis, such as the one that we’re now facing, promissory notes and bank credits will at some point tumble to the ground, as they invariably do. The crisis period that we have just entered will be beyond anything we have seen in our lifetime. How we emerge from it will depend upon whether we have converted our assets to real wealth whilst there is still time.