Your 12-Point ‘Great Depression II’ Survival Guide

The comments below are an edited and abridged synopsis of an article by M.N. Gordon

Just like that, the bull market in stocks is dead. From its peak close of 29,551 (February 12) through its March 12 close of 21,200, the Dow has dropped over 28%.

Your 12-Point Great Depression II Survival Guide | BullionBuzz
Newspaper clipping highlighting the depression

The death of the bull market marks the birth of a new bear market. By Gordon’s estimate, the Dow must fall an additional 30% (approximately) before the bear market dies and a new bull market is born.

Between now and then, the Fed and the Treasury will do anything to jumpstart the old bull market. Last week, Fed Chair Powell fired off a cumulative $4 trillion repo bailout. It didn’t work. The stock market knows that the damage being done to businesses, in an effort to control the spread of coronavirus, is destroying the economy.

The effect, in terms of GDP contraction, will tailspin the economy into a depression. The stock market is pricing this reality accordingly.

During economic chaos, gold and silver are proven vehicles for wealth preservation. Those with the means and fortitude to do so have no doubt already diversified some of their savings into these established crisis hedges. Those who haven’t can only blame themselves. There have been ample warning signs that financial markets were ripe for a crisis.

With luck, gold and silver will safely traverse the downturn to whatever economic order emerges when the crisis abates. At that point, paper dollars will no doubt trade at par with fire kindling, whereas gold and silver will retain their value.

Gold and silver have taken a beating this week. But once this panic liquidation episode subsides, and the implications of fiscal and monetary currency debasement are realized, gold and silver will take off. You can count on it.

The months ahead may validate the wisdom of having freeze-dried food storage and a productive vegetable garden.  Assuming you’re prepared with some food and gold, you can calmly hunker down and avoid large crowds.

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