The 1929 Great Depression vs The Next Great Collapse: Gold and Debt
The situation Americans face in the future will be nothing like they have experienced in the past. While there is plenty of footage about the Great Depression, no one has any idea how bad things really were during the 1930s.
While things were bad for Americans in the 1930s, the amount of US public debt per person was low versus today. After each World War, the total level of debt declined for several years; however, after 1957, there wasn’t a single year that US debt declined, and it increased for 58 consecutive years.
While US debt has exploded, so has the value of gold.
Americans are in real trouble. Oil production in the US is about to collapse, while total US public debt of $19.4 trillion turns out to be a staggering $60,625 for each American. There is no way this debt will ever be repaid.
Some investors and analysts believe there should be a ‘Debt Jubilee,’ or a wiping out of debt so they can start fresh. But wiping out debt also wipes out the supposed assets on the other side. When assets implode, so will the capital available to the market for future economic activity.
The US debt will implode due to the collapse of US domestic oil production on top of falling oil imports in the future. This will create a historic event that will make the population understand the value of gold and silver once again.
While Americans have been suffering 45 years of gold and silver monetary amnesia, precious metals religion will finally wake up the living dead. However, when this occurs, most Americans will be caught by surprise, as many will be wondering why their banks are closed for an extended holiday and their brokers are no longer taking their calls.