The World’s Greatest Bubbles Are Bigger Than Ever
The comments below are an edited and abridged synopsis of an article by SRSrocco Report
Gold and silver have gone nowhere in the past 2 years, while global real estate, equities and securitized debt increased by $103 trillion in the same timeframe.
These items have jumped over $100 trillion in 2 years and are now in extreme bubble territory. How can global equity values surge by $28 trillion in 2 years ($55 trillion to $83 trillion, or 50%) if global oil consumption has only risen by 3 million barrels per day (3%).
According to the International Energy Agency, total global oil demand increased from approximately 95 million barrels per day in 2015 to 98 mbd in 2017. The world isn’t producing 98 mbd of high-quality conventional oil; that includes shale oil, oil sands, and natural gas plant liquids and biofuels.
These global asset values (not including precious metals) are severely overvalued. Within a decade, current global real estate, securitized debt and equity values of $469 trillion will have lost at least 50% of their value.
If just $1-$2 trillion of this made its way to precious metals, it would push gold and silver to extreme levels. Global oil production will decline as US shale oil production disintegrates, starting within the next 1-2 years. US domestic oil production will be down 50-75% by 2025.
If the US falls into a depression, with oil prices below $30, then US oil production could be down 75% in just 7 years. If the economy chugs along for a while, then US oil production could be down by 50% during the same period. Regardless, oil will continue to decline, and it will likely be down 75-80% by 2030.
The US will be a much different place by 2030. If Americans do not diversify some of their wealth into the safe haven of precious metals, they will likely lose a great deal of digital wealth.